Plan PIVE Grants For New Cars 2014
The success of the Plan PIVE (Programa de Incentivos al Vehículo Eficiente) since 2012 has led to the extension of this scheme – Plan PIVE 6 – approved in June 2014. The Spanish Government has once again allocated 175 million euros, the same amount allocated to the fifth edition of the Plan PIVE which ran out of funds sooner than expected.
What Are The Requirements?
Although Plan PIVE grants are not means-tested, you must be resident in Spain and have a NIE number. Grants are only available when you scrap your old car that must be at least 10 years old (7 years for vans or similar).
How Much Is The Grant?
The normal grant is 2000€, which is reduced from the cost of the vehicle at source. This means you pay less when you buy, rather than having to pay full price and wait for the grant to arrive in your bank account. Families with three or more children that buy a vehicle with more than five seats will get an additional 1000€ (total 3000€ grant).
Half of the grant (1000€, or 1500€ for large families) is a Government subsidy and must be included in your annual tax return, the other half is a discount applied by the manufacturer and is not subject to tax. The amount of tax applicable will depend on your income in the year you purchase the vehicle.
What About The Paperwork?
If you want to take advantage of the grant, you won’t need to worry about sorting out any paperwork yourself as the car dealer will do it for you. Normally this will include the collection of your old car, transport to a scrapyard and getting the destruction certificate (necessary for the grant). However, if you decide to take care of scrapping your car yourself, depending on the vehicle, the scrapyard may give you between 200-300€. In this case all you need to supply to the car dealer is the destruction certificate.
What Type Of Cars Are Eligible For Grants?
There are various types of vehicles that are eligible for the Plan PIVE grants, although they must be fuel-efficient and cannot cost more than 25,000€ (net cost before sales tax). Electric or hybrid cars are not subject to this maximum cost. For large families the price of the vehicle is increased to 30,000€ (net cost). Category details for eligible vehicles can be found at the official IDAE website, but it’s probably easier to ask a car dealer specifically about the vehicles you’re interested in.
If you don’t have an old car to trade in (or have one but it isn’t old enough), think carefully about whether it’s worth buying a cheap secondhand car just to get the grant. Remember that you’ll have to pay for change of ownership – you’ll only get the grant if the car that is scrapped is in your name. The cost of changing ownership will be the official fee (around 55€) plus, if applicable, 4% tax based on the official sale price. Additionally you should check if the old car you’re thinking of buying has any local taxes owing, embargoes or similar and has passed the last annual ITV check. And remember to factor in the time it takes you to do this too!
If your Spanish is not up to negotiating with a car dealer, then take a look at our exclusive deal with Busco Coche Por Ti – a Personal Car Shopper based in Madrid. We have arranged for any Money Saver Spain visitor to get a 20% discount, so you’ll only pay 240€ (+ tax) instead of their usual 300€ fee. Remember that they can get you the best price on a new car, so you’re sure to recover the fee in a lower-priced new vehicle.