Until now, Spain was known for having a simple system to tax cars based on CO2 emissions. It's called "Impuesto de matriculación," which we can roughly translate as "registration tax." However, this tax is paid at purchase and there's no further effect during the life cycle of the vehicle. Spaniards do pay an additional tax on cars called "Impuesto de Vehículos de Tracción Mecánica" or "de Circulación" which is a simple road tax, except that it's paid to municipalities instead of to the he federal government (as in the UK, for instance).
This may soon change. The Spanish Ministry of Economy is readying legislation to instruct municipalities to impose a road tax based on "environmental parameters," that is, CO2 emissions. The more a car pollutes, the more taxes its driver will pay per year. The current tax rate is based on an old system that uses engine displacement and power. The reform will also require the owner of the car to pay taxes where he or she lives. Some companies have been registering cars in smaller municipalities with reduced car taxes to shave costs. Some cities such as Zaragoza and Barcelona already offer discounts on this tax for hybrid and electric cars.

[Source: El País]

Share This Photo X