27 Mar, 2021 @ 20:30
1 min read

MORE CARS THAN PEOPLE: Four Valencian towns among list of 25 ‘car tax havens’ in Spain

Car Tax Havens

FOUR towns in the Valencia region have become tax havens for car registration.

Serratella (Castellon) has a total population of 95, but more than 10,000 vehicles were registered in 2019 alone.

These were followed by an extra 2,360 in 2020.

This translates as each resident in Serratella officially owning 25 cars, the highest percentage in the Valencian Community.

But it is not the only one.

Castelfabib and Puebla de San Miguel (Valencia Province) and Relleu (Alicante) have similarly ridiculous figures for vehicle ownership per inhabitant, making it very obvious that something fishy is going on.

Car Tax Havens

The reason is that registration tax is much lower in these towns, prompting rent-a-car fleets and other businesses to register their company vehicles there instead of where they are actually based.

These four are among a list of 25 small municipalities in Spain that are becoming known as ‘car tax havens’, as the number of registered vehicles is higher than the padron town census.

Local councils have the power to increase the basic charge or apply discounts of up to 75% as they see fit, leading to huge differences in price.

On a national level, a study by the Madrid-based Associated European Motorists has revealed that seven Spanish towns – five in Madrid and one in Barcelona provinces – with population figures of between 500 and 14,000 residents account for 37.5% of all company vehicle registrations in the country.

Glenn Wickman

Glenn is a trained and experienced journalist, having obtained a BA Hons degree in Journalism and Communication Studies with Spanish from Middlesex University (London) in 2001.
Since then he has worked on several English-language newspapers in Alicante Province, including 11 years at the Costa Blanca News.
He is trilingual in English, Spanish and Catalán/Valenciano, a qualified ELT teacher and translator with a passion for the written word.
After several years in Barcelona, Glenn has now returned to the Costa Blanca (Alicante), from where he will cover local stories as well as Valencia and Castellón/Costa Azahar.
Please drop him a line if you have any news that you think should be covered in either of these areas, he will gladly get in touch!

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