The IEDMT (Special Tax on Certain Means of Transport), popularly known as the "registration tax", is one of the most surprising hidden costs when bringing a car to the Canary Islands. While on the Spanish mainland this tax is paid when you BUY the new vehicle, in the Canary Islands it is paid again when you REGISTER it if you are coming from elsewhere. This guide explains how it is calculated, what exemptions exist and how to plan for it in your removal.
What exactly is the IEDMT in the Canary Islands
The IEDMT is a state tax regulated by the Law 38/1992 on Excise Duties. It taxes the first definitive registration of motor vehicles intended to circulate on Spanish public roads. In the Canary Islands it is managed by the state Tax Agency (not the Canary one) and is paid using form 06.
Tax rates: how much you pay
The IEDMT is calculated on the market value of the vehicle in the Canary Islands, and the rates depend on CO₂ emissions:
- 0%: vehicles with emissions < 120 g/km of CO₂
- 4.75%: emissions 120-160 g/km
- 9.75%: emissions 160-200 g/km
- 14.75%: emissions > 200 g/km
For pure electric vehicles and most modern hybrids (emissions < 120), the IEDMT is zero.
Calculating the assessed value
The value to which the percentage is applied is NOT what you paid for the car, but rather the Canary market value according to the official tables published by the Ministry of Finance each year (ministerial order). These tables take into account:
- Make, model and exact version
- Year of original registration
- Mileage (with depreciation coefficients)
- General condition (subject to inspection)
These values tend to be between 60-80% of the real market price, so the tax payable ends up lower than if it were calculated on the purchase value.
Available exemptions
Exemption for change of residence
If you are bringing the car to the Canary Islands due to a change of residence from the mainland or another EU country, you may be exempt from the IEDMT if you meet ALL of these requirements:
- The car must be your personal property (not the company's) and be at least 6 months old before the move
- You must have resided outside the Canary Islands for at least 12 months before the move (with a certificate of registration/padrón)
- The car must be imported within the 12 months following the change of residence
- You must commit to NOT selling it during the 12 months following Canary registration
Exemption for disability
People with a recognised disability of ≥ 33% may be exempt from the IEDMT on their personal vehicle (1 vehicle every 4 years).
Zero rate for electric vehicles
Although technically not an exemption, vehicles with < 120 g/km of CO₂ pay a 0% rate, so in practice pure electric vehicles and modern plug-in hybrids do NOT pay IEDMT.
Canary registration procedure step by step
Step 1: bring the car to the Canary Islands
The vehicle arrives by ship (in a container or RoRo). On disembarkation, it remains under "temporary deposit" status until registration is completed.
Step 2: approved Canary MOT (ITV)
You book an appointment at a Canary Islands ITV station (Tenerife, Las Palmas, Lanzarote, Fuerteventura, La Palma, La Gomera). You take the car with all its mainland documents and undergo a full ITV test. If the mainland ITV is still valid, approval is direct; if not, the vehicle must be repaired and resubmitted.
Step 3: form 06 (IEDMT self-assessment)
You submit form 06 through the AEAT's electronic office. If you apply for the change-of-residence exemption, you declare "exempt" and provide:
- Certificate of registration/padrón of origin (12+ months)
- Certificate of registration/padrón of destination (Canary Islands)
- Original vehicle registration certificate
- Original purchase invoice for the vehicle (or equivalent)
Step 4: AIEM
This is the Canary tariff on the entry of goods. For imported cars, you can also apply for the AIEM exemption under the same requirements (prior residence, etc.). It is handled together with the vehicle's DUA (customs declaration).
Step 5: Canary licence plate
You book an appointment at the Traffic Headquarters (Jefatura de Tráfico) of your Canary province (Santa Cruz de Tenerife or Las Palmas) and, with all the above documents plus a passed ITV, you are assigned a new Canary licence plate (XXXX-XXX format, same as on the mainland, but issued by the local Traffic Headquarters).
Step 6: change of insurance
Your mainland insurance may provide initial cover to drive in the Canary Islands, but in the medium term it is advisable to switch to a company with a local network (Mapfre, Mutua Madrileña and Línea Directa have offices; local Canary insurers such as GES Seguros too). Notify your insurer of the licence plate change.
Estimated total cost of Canary registration
For a 3-5 year old mid-range passenger car (Volkswagen Golf, Renault Megane, Seat León):
- IEDMT (if you do NOT apply for the exemption): 600-1,800 € depending on emissions and value
- IEDMT with exemption: 0 €
- AIEM with exemption: 0 €
- ITV approval: 60-90 €
- Traffic Headquarters fees (form 4.1): ~100 €
- Agency/paperwork service (optional, if you don't do it yourself): 100-200 €
Total: between 160 € (with all exemptions) and 2,200 € (without exemptions, vehicle > 200 g/km).
Common mistakes that will cost you money
- Not applying for the exemption within the deadline: if more than 12 months pass since your change of residence, you lose the right to the exemption and pay the full IEDMT
- Selling the car before 12 months: you lose the exemption retroactively and the Tax Agency will claim the IEDMT plus interest plus a penalty
- Not registering your address (empadronamiento) beforehand when applying for the IEDMT: without a Canary certificate of registration, the exemption does not apply
- Confusing IEDMT with IVTM: the IVTM (Motor Vehicle Tax) is a municipal tax paid EVERY year; the IEDMT is a one-off payment made at registration
Frequently asked questions
Can I drive with my mainland licence plate in the Canary Islands?
Yes, but only temporarily. The law sets a 60-day period from your change of residence to start the Canary registration process. After that period, you risk a traffic fine.
What if I'm only going to be in the Canary Islands for a few months?
If your stay is less than 6 months a year (tax residence), you do NOT need to register the car in the Canary Islands. You can drive indefinitely with a mainland licence plate.
What happens if I buy a car that is ALREADY in the Canary Islands?
Cars already bought in the Canary Islands have already paid their IEDMT when first registered. If you buy them second-hand within the Canary Islands, you only pay the regional ITP (Transfer Tax): 5.5% on the Canary assessed value.
Does my electric car pay IEDMT?
No. Vehicles with emissions < 120 g/km of CO₂ pay a 0% IEDMT rate. All pure electric vehicles and most modern plug-in hybrids (PHEV) qualify.
Do I have to pass both the mainland ITV and the Canary one, or just one?
If your mainland ITV is still valid, the Canary one approves it without requiring a full retest. If your mainland ITV expires during the process, you do need to take a new ITV test in the Canary Islands.
Is there a difference in IEDMT between Tenerife and Las Palmas?
No. The IEDMT is a state tax, identical across all islands. Differences may exist in the municipal IVTM (each council sets its own rate) and in the availability of garages and paperwork agencies.
We coordinate the entire registration process
At Horizont Atlantic we include full management of the Canary registration process as part of your vehicle transport service: IEDMT, AIEM, DUA, ITV, Traffic Headquarters, insurance change. You only need to provide the documents. Request a quote stating the make, model and year of your car.
When you're ready to send your car, here is Horizont Atlantic's car transport to the Canary Islands.
