IEDMT (the special tax on certain means of transport), commonly known as the "registration tax", is one of the most surprising hidden costs when bringing a car to the Canary Islands. Whereas on the Spanish mainland this tax is paid when BUYING a new vehicle, in the Canary Islands it must be paid again when REGISTERING it if you are coming from outside. This guide explains how it is calculated, what exemptions exist, and how to plan for it as part of your move.
What exactly is IEDMT in the Canary Islands
IEDMT is a national tax governed by Act 38/1992 on Excise Duties. It is levied on the first definitive registration of motor vehicles intended for use on Spanish public roads. In the Canary Islands it is administered by the national Tax Agency (not the regional one) and is paid using form 06.
Tax rates: how much is paid
IEDMT is calculated on the market value of the vehicle in the Canary Islands and the rates depend on CO&sub2; emissions:
- 0%: vehicles with emissions < 120 g/km CO&sub2;
- 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), IEDMT is zero.
Calculation of the assessed value
The value to which the percentage is applied is NOT what you paid for the car, but the Canarian market value according to the official tables published each year by the Ministry of Finance (ministerial order). These tables take into account:
- Make, model and exact version
- Original year of registration
- Mileage (with depreciation coefficients)
- General condition (subject to inspection)
These values are typically between 60–80% of the real market price, so the tax payable is lower than if it were calculated on the purchase value.
Available exemptions
Exemption for change of residence
If you bring your car to the Canary Islands due to a change of residence from mainland Spain or another EU country, you may be exempt from IEDMT if you meet ALL of the following requirements:
- The car must be your personal property (not a company car) and must have been registered for at least 6 months before the move
- You must have been resident outside the Canary Islands for at least 12 months before the move (with proof of registration on the municipal census)
- The car must be imported within the 12 months following your change of residence
- You must undertake NOT to sell it during the 12 months following Canarian registration
Disability exemption
People with a recognised disability of ≥ 33% may be exempt from 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 CO&sub2; pay a 0% rate, so in practice pure electric vehicles and modern plug-in hybrids do NOT pay IEDMT.
Canarian 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 disembarking, it remains under a "temporary storage" regime until registration is completed.
Step 2: Canarian ITV (roadworthiness test) approval
You book an appointment at an ITV testing station in the Canary Islands (Tenerife, Las Palmas, Lanzarote, Fuerteventura, La Palma, La Gomera). You take the car with all its mainland documents and undergo a full ITV inspection. If the mainland ITV is still valid, approval is straightforward; if not, repairs must be carried out and the vehicle re-presented.
Step 3: form 06 (IEDMT self-assessment)
You submit form 06 through the AEAT electronic portal. If you are claiming the change-of-residence exemption, you declare "exempt" and provide:
- Certificate of registration on the municipal census at origin (12+ months)
- Certificate of registration on the municipal census at destination (Canary Islands)
- Original vehicle registration document
- Original purchase invoice for the vehicle (or equivalent)
Step 4: AIEM
This is the Canarian levy on imported goods. For imported vehicles, you can also claim the AIEM exemption under the same requirements (prior residence, etc.). It is processed together with the vehicle's DUA.
Step 5: Canarian number plate
You book an appointment at the Traffic Authority (Jefatura de Tráfico) in your Canarian province (Santa Cruz de Tenerife or Las Palmas) and, with all the above documents plus a passed ITV, you are assigned a new Canarian number plate (same XXXX-XXX format as on the mainland, but assigned by the local Traffic Authority).
Step 6: insurance update
Your mainland insurance policy may provide initial cover for driving in the Canary Islands, but in the medium term it is worth switching to a provider with a local network (Mapfre, Mutua Madrileña and Línea Directa have local offices; local Canarian insurers such as GES Seguros are also available). Notify your insurer of the change of registration.
Estimated total cost of Canarian registration
For a 3–5 year old mid-range saloon (Volkswagen Golf, Renault Megane, Seat León):
- IEDMT (if NOT claiming exemption): 600–1,800 € depending on emissions and value
- IEDMT with exemption: 0 €
- AIEM with exemption: 0 €
- ITV approval: 60–90 €
- Traffic Authority fees (form 4.1): ~100 €
- Gestor/administrative agent (optional, if you do not 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 claiming the exemption within the time limit: if you exceed 12 months from the change of residence, you lose the right to the exemption and pay the full IEDMT
- Selling the car within 12 months: the exemption is withdrawn retroactively and the Tax Agency will claim IEDMT + interest + penalty
- Not registering on the municipal census before processing IEDMT: without a Canarian census certificate, the exemption does not apply
- Confusing IEDMT with IVTM: IVTM (road tax) is a municipal tax paid EVERY year; IEDMT is a one-off payment made at registration
Frequently asked questions
Can I drive on my mainland number plates in the Canary Islands?
Yes, but only temporarily. The law allows a 60-day period from your change of residence to begin the Canarian registration process. After this period you are liable to a traffic fine.
What if I am only going to be in the Canary Islands for a few months?
If your stay is less than 6 months per year (for tax residence purposes), you do NOT need to register your car in the Canary Islands. You may drive on mainland plates indefinitely.
What if I buy a car that is already in the Canary Islands?
Cars already purchased in the Canary Islands will have paid IEDMT at their first registration. If you buy one second-hand within the Canary Islands, you only pay ITP (Transfer Tax) at the regional rate: 5.5% on the Canarian assessed value.
Does my electric car pay IEDMT?
No. Vehicles with emissions < 120 g/km CO&sub2; pay a 0% rate of IEDMT. All pure electric vehicles and most modern plug-in hybrids (PHEV) qualify.
Do I need to pass both the mainland ITV and the Canarian ITV, or just one?
If your mainland ITV is still valid, the Canarian ITV authority approves it without requiring you to repeat the full test. If your mainland ITV expires during the process, you will need to undergo a new ITV in the Canary Islands.
Is there a difference in IEDMT between Tenerife and Las Palmas?
No. IEDMT is a national tax that is identical across all the islands. Differences may arise in IVTM (each local council sets its own rate) and in the availability of garages and administrative agents.
We handle the entire registration process
At Horizont Atlantic, full Canarian registration management is included in our vehicle transport service: IEDMT, AIEM, DUA, ITV, Traffic Authority, insurance update. You only need to provide the documents. Request a quote specifying the make, model and year of your vehicle.
