When the registered owner of a vehicle passes away, the car cannot be driven or sold until its registration status is brought up to date. Many families let this slide out of not knowing, and over time it gets more complicated (surcharges, being unable to sell, insurance problems). Here is the process, step by step.
1. Determine who inherits the vehicle
First, you need to know whether there is a will or whether intestate succession applies (no will). The vehicle will be awarded to one or more heirs according to what the deed of inheritance or the declaration of heirs establishes.
If there are several heirs and the vehicle is awarded to just one, it should be expressly stated in the partition document or the deed, to avoid problems later on.
2. Settle the Inheritance Tax
Before you can change ownership, you must settle the Inheritance and Gift Tax on the vehicle (as part of the estate). In the Canary Islands this is filed with the Canary Islands Tax Agency, and the general deadline is 6 months from the date of death (extendable if requested in time).
Without this step, the DGT will not accept the change of ownership.
3. Gather the required documents
For the procedure at the Traffic Office you will need:
- Death certificate.
- Deed of inheritance (or declaration of heirs) stating the award of the vehicle.
- Proof of payment or exemption from Inheritance Tax.
- Registration document and technical sheet of the vehicle.
- Latest paid IVTM receipt (road tax).
- Proof of insurance in force.
- ID of the heir or heirs.
If the vehicle is awarded to several heirs jointly (proindiviso), all of them must appear as owners or expressly authorise one of them.
4. Apply for the change of ownership
With the complete documentation, the transfer-by-inheritance application is filed at the Traffic Office or through the DGT's electronic portal (if you have a digital certificate). In this case the procedure is not subject to Transfer Tax (ITP) like an ordinary sale, since the corresponding tax has already been settled as inheritance.
5. Update the insurance
Even once the traffic procedure is done, it is essential to update the insurance policy in the new owner's name. Many insurers let you keep the original policy conditions while it is being regularised, but it is best not to delay it.
What if the vehicle is going to be sold to a third party after the inheritance?
In that case, it is usually advisable to first process the transfer into the heir’s name and then the sale as an ordinary transfer. This avoids registration confusion and problems with the buyer.
Need to handle the inheritance of a vehicle? At Rumbo we take care of the whole process, from settling taxes to the change of ownership at the Traffic Office, so you don't have to deal with the paperwork at an already difficult time.