Best way to deal with a car I own in Spain?

This is probably a difficult question and if you don't have a clear answer, that's fine.

Upon retiring, I bought an apartment in Spain four years ago and for the past four years I've come and gone. Because I spent extended periods there it wasn't realistic to hire a car, so I bought a new car but then I made the mistake of replacing it in 2017. I was never tax resident in Spain and now intend selling up and coming back to Ireland permanently. Do you know what is the tax position of bringing the car back the Ireland? It might be better to sell it in Spain, but I'm unlikely to get a reasonable price, but equally if the VRT is very significant I should accept the loss.

Thanks

Philip

Philip Donegan (Ballina)

Jun 2018 Filed under: importing

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Expert answer

Hi Philip,

It’s a tricky one. Technically, you’ve owned and used the car in Spain (and presumably taxed and insured it), which could, theoretically, mean that you can bring it in VRT-free, but the problem is your residency issue. As this was a holiday home, more than your full-time residence, it might not count. Usually, Revenue wants to see proof of change of address (rather than the end of use of an address) to give you the waiver on VRT. I think a chat to your accountant might be a good idea...

Neil Briscoe - Complete Car Advisor
@neilmbriscoe