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Spanish benefit in kind for a company car — 20% a year and efficiency reductions

Using a company car is valued at 20% a year of its cost to the company, or of its new market value if the company does not own it. Efficient vehicles reduce that value by 15%, 20% or 30%. It is imputed according to your availability for private purposes, plus the payment on account not passed on.

2026 rules — verified on October 3, 2026Free, no account

This content is part of the path: Paying an employee or a freelancer in Spain· Step 3 of 6· Next step: Spanish severance pay on dismissal or end of contract — 12, 20 or 33 days per year

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Sources and assumptions

  • BOE — Ley 35/2006 del IRPF — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « En el supuesto de uso, el 20 por ciento anual del coste a que se refiere el párrafo anterior. En caso de que el vehículo no sea propiedad del pagador, dicho porcentaje se aplicará sobre el valor de mercado que correspondería al vehículo si fuese nuevo. »
  • BOE — Reglamento del IRPF (Real Decreto 439/2007) — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « se reducirá en un 15 por ciento, cuando se trate de vehículos que cumpliendo los límites de emisiones Euro 6 […] sus emisiones oficiales de CO2 no sean superiores a 120 g/km »
  • BOE — Reglamento del IRPF — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « el valor de mercado que correspondería al vehículo si fuera nuevo, antes de impuestos, no sea superior a 25.000 euros. »
  • BOE — Reglamento del IRPF — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « Dicha reducción será del 20 por ciento cuando, adicionalmente, se trate de vehículos híbridos o propulsados por motores de combustión interna que puedan utilizar combustibles fósiles alternativos (autogás –GLP– y Gas Natural) »
  • BOE — Reglamento del IRPF — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « siempre que, en este caso, el valor de mercado a que se refiere el párrafo anterior no sea superior a 35.000 euros. »
  • BOE — Reglamento del IRPF — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « La reducción será del 30 por ciento cuando se trate de cualquiera de las siguientes categorías de vehículos: 1.º Vehículo eléctrico de batería (BEV). 2.º Vehículos eléctrico de autonomía extendida (E-REV). »
  • BOE — Reglamento del IRPF — tax year 2026, verified on October 3, 2026
    Excerpt from the source : « 3.º Vehículos eléctrico híbrido enchufable (PHEV) con una autonomía mínima de 15 kilómetros siempre que, en este caso, el valor de mercado que correspondería al vehículo si fuera nuevo, antes de impuestos, no sea superior a 40.000 euros. »

Calculation assumptions

  • The base is the purchase cost to the company, including the costs and taxes charged on the transaction (VAT, the Registration Tax, customs duties and so on), or, if the company does not own the vehicle, the market value it would have new, including the costs and taxes inherent in the purchase. The value already covers insurance, municipal taxes and maintenance, which are not added to the base; fuel paid by the company is a separate benefit.
  • The part imputed is the extent to which you can use the car for private purposes, whether or not you do; the criterion and the example are those of the Spanish Tax Agency's Income Tax Practical Manual, in the edition read for this tool (Renta 2025).
  • If you have the car for only part of the year, the annual value is prorated by whole months: a convention of this tool, not set by the Act.
  • You check the conditions of each reduction (Euro 6, CO2 emissions, engine type, range); the tool only checks the limit on new market value before taxes.
  • Not covered: handing the vehicle over to the employee, with or without prior use, vehicles of car-hire companies (price offered to the public), fuel, and the calculation of the payment on account itself.

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This result is provided for information purposes only and does not constitute personalised tax advice. Check your situation with the tax authorities or a professional.