Driving dilemma: Benidoleig an unexpected tax haven

Driving dilemma: Benidoleig an unexpected tax haven.

Driving dilemma: Benidoleig an unexpected tax haven. Image: Tint Media / Shutterstock.com

How can a town with just 578 residents have 21,386 registered vehicles?

This staggering figure, equating to 37 vehicles per person, is indeed perplexing.

While some families might own multiple cars or motorbikes, this ratio seems highly improbable.

This is precisely the scenario in Las Rozas de Puerto Real (Madrid), based on 2023 data.

However, the residents of this town are not vehicle collectors.

Tax Advantages

The underlying reason for this anomaly lies in tax-related advantages.

In Spain, there are 10 small towns with an unusually high number of annual vehicle registrations.

Remarkably, five of these towns are in the Valencian Community: one in the province of Castelló, two in València, and two in Alicante.

Among these, one town in the Marina Alta region is a notable “automobile tax haven.”

Notable Tax Haven

Benidoleig, with only 1,245 residents according to the National Institute of Statistics (INE) as of January 1, 2023, had 4,004 registered vehicles.

This results in an average of 3.2 cars per resident.

The reason drivers choose to register their cars in small towns is due to the significant variation in road tax prices across Spain.

The price differences between municipalities can be as high as 900 per cent, with provincial capital disparities exceeding 150 per cent.

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Written by

Anna Ellis

Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.