What happens if you don’t pay the IVTM?

Have you forgotten to pay the IVTM or do you not know where that car you just bought stands? Unpaid road tax can bring more problems than you expect. In this article we explain in plain language what happens if you are not up to date with the IVTM and how to stop it costing you more money… or even the vehicle.

What is the IVTM and why does it matter to stay up to date?

The IVTM (Impuesto sobre Vehículos de Tracción Mecánica / road tax) is a compulsory municipal tax paid every year. It is often collected by direct debit, but not always. If you work with vehicles — buying, selling or managing them professionally — it is essential to make sure this tax has been paid.

Unpaid IVTM: how much extra can it cost you?

If you do not pay the IVTM within the deadline, the town hall will apply a surcharge. That surcharge varies, but it can range from 5% to 20% of the total amount. In other words: you pay more for the same thing, just because you did it late.

💡 Veiko tip: Before you close any deal on a vehicle, check whether it has outstanding debts. You will avoid unpleasant surprises.

Can they seize the car if you do not pay the IVTM?

Yes, it is possible. Traffic officers cannot immobilise your vehicle just because the IVTM is unpaid, but if the debt builds up, the town hall has the legal power to seize your bank account or even the car.

You cannot sell or transfer a car with unpaid IVTM

This point is especially critical for motor-trade professionals. If a vehicle has IVTM outstanding, the keeper cannot be changed. That means you cannot sell or transfer it until the full debt is paid, including late-payment surcharges.

🔧 At Veiko we make it easy: our auctions include the transferencia (ownership transfer) and all the document handling. So you do not have to worry about paperwork or surprises.

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Can it affect the car's insurance?

Yes, it can. In the event of an accident, an insurer could refuse to pay out if it finds the vehicle was not legally authorised to be on the road because the IVTM had not been paid. That can mean being left without cover when you need it most.

How can you avoid these problems?

• Set the IVTM up by direct debit if you can.
• Check the vehicle's status with Tráfico before buying or selling.
• Contact your town hall to confirm whether there is outstanding debt.
• Keep a record of due dates if you manage several vehicles.

With Veiko, your vehicles are ready to go on the road

At Veiko we take care of everything needed so your purchases are safe and hassle-free. The price you bid already includes the transferencia (ownership transfer) and document handling. And if it is your first purchase, you have our Return Guarantee.

Conclusion: paying the IVTM on time saves you a lot of trouble

The IVTM is more than a formality: it is a legal obligation that can hit your pocket and your ability to manage vehicles. Whether it is an oversight or a lack of information, non-payment can have costly consequences. Do not let it slide.