Can you sell a car without insurance in Spain? Here’s what the law says

Selling or buying a used car in Spain can be confusing, especially if the vehicle no longer has insurance. Many international residents aren’t familiar with how Spanish traffic law works, who is responsible for the paperwork, or what happens to the insurance once the car changes hands. Whether you live in Spain all year round, spend long periods abroad, or own a second home here, understanding the process can help you avoid legal or financial complications.

Selling a used car in Spain without insurance is legal, but only if the vehicle is not driven on public roads.

Is it legal to sell a car without insurance in Spain?

Yes. A car does not need to be insured in order to be sold. Insurance is only required when a vehicle is driven on public roads or is active in the traffic register.

Key points for foreign residents

• You may own and sell a car without insurance.
• You may not drive it without a valid policy.
• Even very short movements on public roads count as “circulation” and require insurance.

What happens to the insurance when you sell a car?

In Spain, car insurance is linked to the policyholder, not the vehicle. This means the policy does not automatically transfer to the buyer.

Your options as a seller

1. Cancel the policy once the sale is completed. If you cancel the policy, you can request a refund for the remaining unused period.
2. Transfer the policy to another vehicle you own or will purchase.
3. Request the insurer’s approval for a policy assignment to the buyer (less common).

Can you transfer ownership without insurance?

Yes. The DGT allows ownership transfers even if the car is not insured. However, the buyer cannot drive the vehicle until they have arranged an insurance policy. Many foreign buyers assume they can drive the car home and insure it later, but this is not permitted.

DGT requirements for ownership transfer

To transfer a vehicle, the DGT requires:

• Change of ownership application form
• Identification for buyer and seller (passport, NIE/TIE or Spanish driving licence)
• Signed sales contract or invoice
• Vehicle registration certificate
• Payment of the DGT fee
• Payment of the regional transfer tax (ITP)

The transfer can now be completed online, which is especially helpful for those who do not live full-time in Spain.

What if the ITV has expired?

A car with an expired ITV can still be sold. However, it cannot legally be driven until the ITV inspection is passed. The buyer may need to arrange a tow truck if the vehicle cannot be moved.

Insurance, ITV and selling a car: how they connect

Many people assume that insurance, ITV and ownership transfer must all be current at the same time, but each element fulfils a different legal function.

• Insurance is only required if the vehicle is going to be driven. You can sell a car without insurance, but the buyer must insure it before using it on public roads.
• ITV is required for circulation, not for selling. A vehicle can be transferred with an expired ITV, but it may not be driven until the inspection is passed.
• Ownership transfer is the administrative requirement that formalises the sale. It applies whether or not the car is insured or has a valid ITV.

Understanding these three points separately helps avoid confusion when preparing a sale or purchase.

How to sell a car safely and legally in Spain

Gather the necessary documentation

• Registration certificate
• Technical sheet
• Proof of latest road tax payment (IVTM)

Use a proper sales contract

A clearly drafted, signed contract protects both parties — and is especially important if you spend long periods outside Spain.

Notify the DGT after selling

This step avoids future fines, road tax charges or legal responsibility if the buyer delays the transfer.

Additional considerations for foreign residents

Many international buyers and sellers manage part of their life between two countries. These extra tips help avoid common issues:

If you’re buying:

• Verify outstanding fines
• Check vehicle details carefully
• Confirm tax payments
• Arrange insurance before collecting the car

If you’re selling:

• Do not hand over keys without a contract
• Notify the DGT immediately
• Keep digital copies of all paperwork
• Cancel or transfer your policy as soon as the sale is finalised

Frequently asked questions

Do I need insurance to sell my car?

No. It is only required for driving.

Can I go to the ITV without insurance?

No. The vehicle must be insured to attend the inspection.

Can a foreigner buy a car in Spain without a Spanish licence?

Yes, provided your licence is valid in Spain.

Can non-residents insure a car in Spain?

Some insurers allow it; others require a NIE.

Can I transfer a deregistered car?

Only once it has been reactivated.

How do I avoid problems if the buyer doesn’t complete the transfer?

Notify the DGT that the vehicle has been sold.

You don’t need insurance to sell… But you do to drive

Even though you don’t need insurance to sell a car in Spain, any vehicle that’s going to be driven — whether by you or its new owner — must be fully insured before it goes back on the road. And for many expats, that’s often where the real questions begin: Which cover do I need? What’s required by law? Who can explain it clearly in my own language?

Drive with confidence – stay legal, protected, and ready for the road ahead.

At Generali Expatriates, we provide car insurance tailored to the way international residents live in Spain. Whether you’re insuring a newly purchased vehicle, switching cars after a sale, or simply looking for more reliable cover, our policies are designed to make the process straightforward and stress-free.

You can speak to local agents and brokers across Spain in English, German, French, Dutch, Scandinavian languages or Finnish — professionals who understand the expat experience and can guide you through your options clearly.

Explore our car insurance solutions today, and while you’re here, take a look at the home, life, and additional cover we offer for foreign residents.

Find your nearest agent or request a quote, and one of our expatriate insurance specialists will help you choose the cover that suits you best.