{"id":3577,"date":"2026-10-29T16:28:03","date_gmt":"2026-10-29T15:28:03","guid":{"rendered":"https:\/\/tecemabogados.com\/?p=3577"},"modified":"2026-10-29T16:28:03","modified_gmt":"2026-10-29T15:28:03","slug":"company-car-tax-spain","status":"publish","type":"post","link":"https:\/\/tecemabogados.com\/en\/company-car-tax-spain\/","title":{"rendered":"Company car in your SL: what the Tax Agency accepts and what it does not"},"content":{"rendered":"

Putting the car in the company’s name looks like the simplest way to have the business pay for it and save on tax along the way. The reality is more nuanced: a company car<\/strong> doesn’t automatically make everything it costs deductible. The Spanish Tax Agency looks at VAT, Corporate Income Tax and personal use separately, and applies different rules to each. At Tecem Abogados we explain what it accepts and what it doesn’t.<\/p>\n

A company car in your SL’s name is not 100 % deductible<\/h2>\n

Ownership is only the starting point. What matters to the Tax Agency is what the company car is used for. If it serves the company’s business and also the private life of whoever drives it, the law doesn’t treat it as an asset used exclusively for the business, and that limits what can be deducted.<\/p>\n

That’s why, before buying, renting or leasing a company car, it’s worth being clear about how it will be used and how that use can be proven. It’s one of the most common questions among self-employed people and SMEs in M\u00e1laga who have just made the jump from self-employed to an SL<\/a>.<\/p>\n

Company car VAT: the 50 % presumption<\/h2>\n

Article 95 of the VAT Act 37\/1992<\/a> states that passenger cars (as well as mopeds, motorcycles and off-road vehicles) are presumed to be 50 % used for business. In practice, with a passenger car as a company car, the usual approach is to deduct half of the input VAT on its purchase, rental or assignment of use.<\/p>\n

That presumption is not a fixed ceiling. The law allows you to deduct more if a higher degree of business use is proven, by any means of evidence admissible in law. However, it makes clear that filing the return or having the vehicle recorded in the accounts is not enough: actual use has to be demonstrated.<\/p>\n

And it works both ways. If actual use turns out to be different from the percentage applied at the start, the deduction must be adjusted.<\/p>\n

When a company car is presumed 100 % business use<\/h2>\n

The same law lists cases in which the presumption rises to 100 %. These are vehicles:<\/p>\n