Complete Guide: How to Open a Car Dealership in Spain

Opening a car dealership in Spain can be an excellent business opportunity if done with strategy and knowledge. Whether you are starting as a broker or have been considering it for a while, this complete guide explains step by step everything you need to take into account to legally and effectively start your dealership.

Legal and Administrative Requirements

Before selling the first car, you need to ensure that you comply with all legal obligations. The legal structure of your business will determine most of your tax, labor, and administrative responsibilities.

Register as a self-employed worker or establish a company

You can start your activity as self-employed if you prefer to begin with less investment and administrative simplicity. However, if you plan to grow quickly or partner with others, a Limited Company (S.L.) can offer you greater legal and tax security.

In either case, you must:

• Register in the Special Regime for Self-Employed Workers (RETA) or create the company before a notary.

• Register with the Tax Authority using form 036 or 037.

• Choose the correct heading for the Economic Activities Tax (IAE), such as 615.1: retail sale of vehicles.

Municipal Licenses and Permits

The premises where you carry out your activity needs a opening and activity license. This is requested at the City Hall and depends on factors such as location, surface area, type of activity, or environmental impact.

You will often need:

• A technical project signed by an architect or engineer.

• Certificate of urban compatibility.

• Fire protection report.

The processing can take weeks, so it's advisable to start it as soon as possible.

Registration with Traffic and the Tax Authority

To operate legally as a dealership, you must also register as a vehicle manager with the DGT, which will allow you to carry out transfer, cancellation, or registration procedures. This process requires:

• Valid digital certificate.

• Registration in the telematic notification system.

• Declaration of compliance with data protection regulations.

Premises, Facilities, and Location

The space where you display and sell vehicles is key to building trust and facilitating daily operations. Not all premises are suitable for this type of activity.

Minimum Characteristics of the Premises

A dealership requires:

• Exterior or interior exhibition area, with space for at least 4-5 vehicles.

• Office equipped with internet connection, space for customer service, and document storage.

• Hygienic services and access for people with reduced mobility.

Urban Planning Requirements and Signage

It is essential that the premises are located in an area where municipal regulations allow the activity of buying and selling vehicles. Also, you must install a visible sign with your trade name, hours of operation, and NIF.

If you plan to offer additional services such as mechanics or cleaning, you will also need specific licenses and comply with environmental regulations.

Vehicles: How to Acquire Initial Stock

The profitability of the dealership starts with the purchase. Knowing which vehicles to buy, where to acquire them, and how to evaluate them will make the difference between making or losing money.

Common Purchase Channels

Among the most used are:

• Professional auctions (such as BCA or Autorola), which offer volume and traceability.

• Individuals looking to sell their car directly, an option that often requires more negotiation but can prove more profitable.

• Sales networks where you can exchange units or close deals among professionals.

• Importation, although it requires experience and knowledge of international legislation.

Verification, Appraisal, and Documentation

Always check:

• Mileage, tires, mechanical condition, and possible structural damage.

• Maintenance history and inspections.

• Legal situation: that it has no liens, domain reservations, or seizures.

Formalize a sales contract with a copy of the seller's ID, technical data sheet, circulation permit, and proof of the last circulation tax.

Initial Investment: How Much Does It Cost to Start?

The required capital depends on the type of business you want to set up. It's different to start with 3 cars and a small premises than with 20 cars and staff.

Main Expense Items

• Premises: deposit, first rent, and space adaptation.

• Initial stock: at least 4 or 5 cars.

• Advertising: ads on portals, announcements, signage, and branding.

• Management software: CRM, accounting, automated posting.

• Legal expenses and insurance: including civil liability.

Example of basic investment:

A small dealership can start with an investment between 25,000 and 35,000 €. If the premises are already owned or shared with another business, the cost is reduced.

Necessary Tools and Technology

Digitalization has transformed the buying and selling of vehicles. Having a manual system will leave you out of the market.

Management Software for Dealerships

With a good software, you can:

• Manage stock, control margins, and expenses per unit.

• Automatically upload ads to portals.

• Register customers, leads, and track sales.

Tools like Dealcar allow you to have all this centralized and automated.

Publication on Portals and Online Visibility

Being present on portals like Coches.net, AutoScout24, or Milanuncios is essential. It is also advisable to have:

• Your own website with your updated catalog.

• Company profile on Google Business with reviews.

• Active presence on social networks like Instagram or Facebook.

Key Tips Before You Launch

Differentiate Yourself from the Competition

The market is full of dealerships. Find your value proposition: low prices, extended warranties, specialization in a specific segment, or premium service can make the difference.

Build Trust from Day One

Customers seek transparency. Publish condition reports, show all associated costs, and offer written warranties. Respond quickly to inquiries and pay attention to every detail of the sales process.

Frequently Asked Questions

How much money do I need to start a car dealership? A minimum of 25,000 to 35,000 € to start with guarantees, including premises, stock, and basic tools.

What licenses are needed to open a dealership? Opening license from the City Hall, registration with the Tax Authority and Social Security, and registration with the DGT as a manager.

Can I open a dealership from home or with a parking lot? It is not advisable. To operate legally, you need premises with a license and space set up according to regulations.