Deducting a Car as an Autonomo: The 50 Percent VAT Rule

If you want to deduct your car as an autonomo, you quickly run into two different rules that have nothing to do with each other. For VAT (IVA), it is usually enough that you use the vehicle for your work at all. For income tax (IRPF), Hacienda in most cases demands exclusive business use, with no private trips at all. If you do not know this difference, you either leave deductions on the table or end up with trouble over disallowed expenses in an audit.

IVA and IRPF: Two Different Rules for the Same Car

The confusion comes from the fact that both taxes treat the same vehicle differently. IVA follows Article 95 of Ley 37/1992 of 28 December on value added tax, while IRPF follows Article 29.2 of Ley 35/2006 together with Article 22 of the IRPF regulation (Real Decreto 439/2007). Both rules govern when an asset counts as "afecto a la actividad," meaning assigned to your business activity. They just set different standards of proof.

For IVA, according to the Agencia Tributaria, partial business use is enough to deduct part of the input tax. For IRPF, established administrative practice demands more: in principle the vehicle must not be driven privately at all, not even occasionally, if you want the full deduction.

The 50 Percent Rule for VAT

If you buy, lease, or rent a regular car (vehiculo de turismo) for your business, you can deduct 50 percent of the VAT on it without having to prove that exact share in your particular case. That applies to the purchase itself as well as to fuel, repairs, tires, and insurance, as long as the vehicle is demonstrably also used for business.

The 50 percent presumption is a floor, not a cap. If you can prove higher actual use, for example with a logbook or GPS data, Hacienda will also recognize a higher share. Certain professions get a 100 percent presumption from the start:

• Sales reps and agents, for field visits
• Driving schools, for the vehicles used for instruction
• Freight and transport companies, for goods transport
• Passenger transport businesses, such as taxis
• Security and surveillance services

IRPF: Only Allowed for Exclusive Use

Income tax applies a stricter rule. Under Article 22 of the IRPF regulation, you must use the vehicle exclusively for your self-employed activity to fully deduct depreciation and running costs. If you also use it for private errands or vacations, Hacienda in practice denies the deduction entirely, not just proportionally.

Spain's Supreme Court clarified on 13 June 2019 that this rule is not an absolute, irrebuttable presumption. In practice, though, exclusive use remains the requirement, with the same legal exceptions as for VAT: sales reps, driving schools, and transport and security companies can fully deduct the vehicle for IRPF too, even if minor private use occurs.

Leasing, Renting, and Running Costs

Whether you buy, lease, or finance the car through renting does not change the deduction rules themselves. VAT on the monthly payments is subject to the same 50 percent presumption, and IRPF still requires exclusive use unless an exception applies. In practice, renting often makes documentation easier, because maintenance and insurance are usually bundled into a single monthly invoice.

Treat parking fees and tolls (peajes) as ancillary costs of the vehicle: they follow the same deduction percentage as the car they belong to. For vans and vehicles with clearly commercial features, for example without rear seats or with a fixed cargo area, the TEAC reversed the burden of proof on 24 June 2025 in its Resolucion RG 4214/2024: Hacienda now has to prove predominant private use itself if it wants to reduce the deduction.

If you bring your company car from your home country to the island instead, the same rules apply as for a car bought here, once it is registered in Spain. The process for re-registering is explained in the guide Re-registering a Car in Mallorca.

Frequently Asked Questions

Can I deduct the VAT on my car even though I also use it privately? Yes, for a regular car usually 50 percent, without having to prove the exact split. Sales reps, driving schools, and transport companies can generally claim the full 100 percent.

Why can I deduct the car for VAT but not for income tax? IVA and IRPF follow different laws with different standards of proof. IVA is satisfied with a 50 percent presumption, while IRPF requires exclusive business use without a legal exception.

Does the 50 percent rule also apply to vans? For vehicles with clearly commercial features, such as a cargo area or no rear seats, a presumption in favor of the autonomo has applied since the TEAC ruling of 24 June 2025, and Hacienda now has to disprove it.

Conclusion

For cars, IVA and IRPF go separate ways: you can usually deduct half of the VAT as an autonomo without proving anything, while income tax almost always requires exclusive business use. Sales reps, driving schools, and transport and security companies are the exception under both taxes and can deduct in full. Leasing and renting follow the same percentages as buying, and since the TEAC ruling of June 2025, vans with clearly commercial features benefit from a reversed burden of proof. For an overview of the quarterly tax obligations of being self-employed overall, see Autonomo Taxes in Spain: IVA and IRPF; filing the annual return is covered in the guide Tax Return in Spain.