Buying a car in Spain is much harder than the UK as you may already know. 

Red Tape problems seem to affect a lot of us here in Spain but none more so than the simple purchase of a car.  Firstly you will need to produce certain documentation, including confirmation of your address such as the escritura (property deed) or rental agreement for where you live in Spain as well as your N.I.E number.

Now if you don?t have an NIE while reading this you need to get this sorted first and foremost.  There are many individuals and companies readily available by picking up your free or local paper, these individuals are loosely known as Gestors alternatively your Abogado (Accountant/Tax Advisor) should be able to assist you with this.
 
If buying a new car in Spain from a dealer you will find that they will normally organise all the paperwork for you but you will have to pay any transfer tax and fees.

If purchasing a second hand car in Spain then you need to ensure all the paperwork is handled correctly to avoid incurring fines. The seller should provide you with the Impuesto Sobre la Circulación de Vehiculos (car tax) and the Tranferencia. Most people will use a Gestor (a general purpose consultant) to organise the paperwork for them although this will incur you a fee. We would recommend taking a note of the vendors NIE number or copy or Tarjeta de Residencia or passport for your own peace of mind and it can also be used to check signatures.

You should also ensure the Inspection Technical de Vehiculos is current (ITV).  This is the Spanish equivalent of the UK MOT and all cars over 4 years old must have an annual test. There is a time limit of 15 days to register the car in your name.
 
Like the UK all vehicles must be taxed in Spain.  The level of road tax in Spain is set by the municipal authorities and will vary from area to area. The tax is paid to the local authority and can be paid in person at the relevant Town Hall office or at a bank.
 
Not paying this tax can have serious consequences with your vehicle being impounded.
 
The original receipt for payment of the Road Tax in Spain should be kept with the other documents in your car in case the police stops you.

If you have an EU licence such as the full UK licence then you can use that to drive a vehicle in Spain. You cannot obtain a Spanish driving licence without a Residencia.

Whilst it is not necessary to obtain a Spanish licence, strictly speaking you should carry a translation of your licence in Spanish as the police may ask for this and officially it is a requirement for driving in Spain. This can be obtained from the Real Automovil Club de España. Alternatively, you can obtain an international driving licence from your home country before coming to Spain.
 
If you decide to become a resident of Spain you should change your licence to a Spanish licence. You can arrange to show your current EU licence and your tarjeta de residencia to the relevant trafico office and complete the relevant form.
 
The alternative is to exchange your current driving licence for a Spanish licence. In order to do this you must provide copies of your passport, your driving licence, tarjeta de residencia and the relevant form from trafico completed. The process can take several days to complete.

Please note that the above is a guide pure and simple and is not to be deemed as the correct course of action.  When in doubt speak to a lawyer or professional in the relevant field. 121autos.com will not be held responsible for inaccuracies in any of the above text.