Vehicle Registration Tax Yields €305 Million: Why is Revenue Increasing?

The Spanish Tax Agency has released data on vehicle registration tax revenue up to May 2025, revealing a 0.99% year-on-year increase, amounting to a total of €305 million. This rise occurs despite a significant decrease in the average amount drivers pay for this tax.

During the first five months of the year, the average amount paid for the registration tax was €610, representing a decrease of €114 (-15.7%) compared to the same period last year. In May alone, the average fee was €542, €161 less (-22.9%) than the €703 paid on average in May 2024.

Despite the drop in the average tax fee, the average price of vehicles purchased by Spanish consumers has seen a slight increase.

Up to May, the average price, including tax, was €23,073, €114 more (a 0.49% increase) than the €22,959 recorded up to May 2024. In May, this figure was even higher, reaching €23,206, €387 more than in the same month the previous year, representing a 1.69% increase.

The increase in public revenue from the registration tax is mainly explained by the sustained growth in vehicle sales. So far this year, a total of 490,711 units have been sold, marking a significant 13.6% increase compared to the same period in 2024. In May alone, deliveries reached 112,820 units, an 18.55% rise from the fifth month of the previous year, according to data from the Spanish Association of Automobile and Truck Manufacturers (Anfac).

Another relevant factor is the reduction in the average CO2 emissions of new vehicles. By the end of the first quarter, emissions stood at 109 grams of carbon dioxide per kilometre, eight grams less than in 2024. In May, this difference was even more pronounced, with 103 grams of CO2 per kilometre, 14 grams less than the previous year, indicating a trend towards more efficient and less polluting vehicles.

Finally, the total value of vehicles purchased in Spain between January and May reached €11.563 billion, marking a notable 20% year-on-year increase. In May alone, the purchase value was €2.586 billion, 29.4% more than in May 2024, reflecting the dynamism of the Spanish automotive market.