Buying a new car will be cheaper, there will be a reduction in the registration tax

We continue to return with the registration tax. Since January 1, 2021, buying a car has meant, in most cases, paying a greater amount than until December 31, 2020. One of the reasons, for the Spaniards we had to invest a greater amount to acquiring the same car, resides in the rise in the registration tax that, de facto, has occurred. But the news of the week is, without a doubt, that finally there will be a decrease in the registration tax or, rather, a review of the sections, to reverse the effect that the application of the WLTP had on the new car taxation.

What has happened these days? Unexpectedly, the debate about the registration tax had crept into the Bill on measures to prevent and fight tax fraud. The law was approved by Congress, including an amendment that revised the registration tax. The law was sent to the Senate, in which amendments were presented to avoid the reduction of the registration tax that would occur, in practice, when reviewing the tax tranches. See chronology of the registration tax.

Finally, an amendment has been submitted by which the registration tax brackets would be revised, which will mean paying less for registration tax, in most cases, and therefore should translate into a drop in the price of many new cars.

When will the registration tax be lowered?

After its approval in the Senate, the law should be referred, again, to Congress. In accordance with the agreement reached between the majority of the parliamentary forces, the law will be approved. The reduction of the registration tax, therefore, would begin to apply from the day after its publication in the Official State Gazette. So that the registration tax reduction will be effective in a matter of a few days.

At this point it is also important to remember that the modification of the registration tax sections will not be retroactive. There will be no compensation for those buyers who have registered a car with the previous tax since January 1, 2021.

On the other hand, it is important to remember that this reform, and as it appears in the law that is going to be approved, will have effect until December 31, 2021. That means that in 2022 it will return to the previous registration tax sections , which means paying more for this tax, unless a new reform is presented before the end of this year.

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The registration tax so far

At this time, and until the law is approved, the registration tax is calculated using the following table:

Registration tax Certified CO2 emissions (WLTP) 0% Up to 120 g / km of CO24.75% Between 121 and 159 g / km of CO29.75% Between 160 and 199 g / km of CO214.75% Above 200 g / km of CO2

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This is how the registration tax will remain

As of the approval of the law, the registration tax will remain as shown in the following table:

Registration tax Certified CO2 emissions (WLTP) 0% Up to 144 g / km of CO24.75% Between 145 and 191 g / km of CO29.75% Between 192 and 239 g / km of CO214.75% Above 240 g / km of CO2

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Buying a new car will cost a little less

Although not all cars will pay a lower registration tax from the moment the law is approved, we can verify that most will benefit from this kind of reduction and that the cars that will see their tax lowered They will be those that comply with the following CO2 emissions, homologated according to WLTP:

From 121 g / km to 144 g / km: from paying 4.75% to being exempt From 160 g / km to 191 g / km: from paying 9.75% to 4.75% From 200 g / km to 240 g / km: from paying 14.75% to 9.75%

However, due to the distribution of the current registration tax brackets, and the new ones, there will be cars that do not see their tax altered and, therefore, its price, which will be those that are situated in the following CO2 emissions, homologated according to WLTP

From 0 to 120 g / km: they are exempt and will continue to be exempt from the registration tax From 145 to 159 g / km: they will continue to pay 4.75% From 192 to 199 g / km: they will continue to pay 9.75% Above 240 g / km: they will continue to pay 14.75%

The best advice we can follow these days, if we are in the process of deciding to buy a new car, It happens to keep us awaiting and very informed about the news that arise regarding the registration tax reform. And, meanwhile, continue to mature the purchase decision, request information from dealers and the brands themselves and analyze prices, offers and request quotes, using tools such as our portal What car do I buy?

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