The Law for Transporting passengers in Spain (Taxis and Similar)

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Posted and filed under Legal Issues in Spain, Motoring in Spain, Newsletters.

We had an enquiry from a gentleman last year who said that he wanted to do a similar business in Spain as in the UK, which was tennis holidays. Initially, he would still be based in the UK and would fly in with his clients. We looked into the matter and advised him the following:

We have the information about the requirements regarding vehicles for use in developing a tennis activity holiday. It is good news because the vehicles do not need any special licence, or steps at the Traffic office nor the Ministry of Industry.  The most important point is to be aware in case that the police stop you, that when transporting people in the car, that you must show the police something to prove that people are clients of your company.

You must have a contract with their names and document number as a proof that they are not only passengers, but they are the clients of your business. And that business cannot be an airport transfer business as that is a taxi and not permitted, as there are strict rules about licences for taxis. Fines for airport transports and taxiing can be very expensive.

So it is essential to always have your company set- up documentation in your car, and the client paperwork with you at any time you are transporting passengers,  to prove that you are transporting them for free, as a courtesy car, as part of another main service. Then the car has to be classified as a “Tourism” of maximum nine seats. It can not be a van. It is highly recommended to be a labelled car with the company logo.

The police do most of the controls at airports, so you must take care that your clients do not pay any money to you when they are getting out of the car at the airport, as that would then appear as if you were merely acting as a taxi when you are a proper business.

If you are registered as a legal company or self-employed in Spain then you are permitted to transport passengers as long as it is part of the service of another main business (such as the tennis holidays).  To be legal the new business must be registered in Spain. If not, then a client can register the home country company in Spain to trade, but this option is expensive and may have implications in the home country.

To be fully legal our customer can set up an SL company in Spain, being resident back home, to trade or he can sign an agreement with a registered company/sole trader here in Spain to provide to him the service to take people around.

So in summary, someone has to be registered legally as a business in Spain, and have the transport of people included with his main business activity  (for example of tennis holidays). They must be clients and the driver to be able to show he is the owner of the company or employed by it and have all relevant documentation on them if stopped to avoid a fine, showing that a service or product has been contracted (not an airport run)

We also spoke to an officer in the N332 Group of Guardia Civil who said the following:

” I just read the text about the person who would like to do tennis holidays legally.  It is similar to the situation that there are many apart-hotels or apartments paying someone to go to pick up people from airports, who are then paid by the clients.  When we stop cars or vans doing this, we ask if the car is in the name of the aparthotel, and are they doing a free courtesy service of airport pickups etc.. The person/entity that is invoicing the client has to be the apart-hotel (no one can invoice the client for this service, it must be included in the package and must be free) or the proprietor of the apart-hotel or apartment. If it is not in the name of the apart-hotel, then the person driving has to have worked for the apart-hotel for more than 30 months. ( The driver must prove his employment relationship with the company which the apart-hotel, it does not matter how many days or months is working for it) or it is sanc­tion­able of­fence.

Then the car has to be clas­si­fied as a “Tour­ism” of max­imum nine seats- (It can be a van or a car, depending on the needs of the client. For example, a van with 5 seats goes to the airport to pick up clients to play golf and all their material, so on this particular case, a van is required- it does not matter the car used provided that is into the business name and the worker works for it.

So in this case, the vehicle, say up to 9 seats, has to be in the name of the tennis company or the name of the owner of the tennis company and the best advice is that when a client hires the package or service the voucher or bill should clearly say to play tennis. You absolutely can not charge to pick up and take someone to the airport, it can only be a free courtesy service, like estate agents do for their clients, and not paid for as this is not permitted. Taxiing would be a public service (remember public liability and what insurance will cover in the event of an accident), strictly regulated, and can only be done by taxis and they have a special plaque that says SP, which costs a lot of money. Breaking this rule can lead to fines of up to 3,000€.

If you wish to set up a business or need tax help, please contact our colleague Ana to set up an appointment: office@spanishsolutions.net

 

50 Comments

  • Jason Hurst

    Hi

    Can you please advise what steps nd licenses would be needed to operate a minibus from Costa Blanc to Alicante and Murcia airports? It would be a disabled adapted mini bus

    I have a full bus license and CPC card and also. Digital Tachograph Card

    These are all English but can be exchanged if needed I’m looking at setting up in February 2020
    Thanks

    • Nicola Ryan

      Good Morning Jason,

      Thank you for your enquiry.

      This kind of business is not easy at all, to get a transport licence SP (Servicio Publico) is very expensive and it takes a long time. It is also possible there are no licence available in the area and there is no way to get one. It would be best to contact a Fiscal Advisor who will assist with the relevent permits and if successful ensure the buisness has been legally set up for you. Should you need assistance with the Fiscal Advisor, please do not hesitate to contact us, we would be more than happy to help.

      Kind regards
      Nicola

  • Paul meek

    Hi i have a nine seater mini bus and i work private hire in england i am looking to start a buisness in murcia transporting pre booked and paid customers who will be booking through a registered ticket excursions office i am in the process of applying for a private hire license in mjurcia could you tell me what insurance i would need I.E. would chauufer insurance cover this or ordinary mini bus insurance with public liability along side it thank you

    • Nicola Ryan

      Good Morning Paul,

      Thank you for your enquiry. Initially you need to register the van as “buisness use”, then have insurance for all seats. You would also need public liability to cover your buisness activities and employees. We hope this helps.

      Kind regards
      Nicola

  • Gillian Pisirayi

    What are the procedures to set a company of taxis

    • Nicola Ryan

      Good Morning Gillian,

      Thank you for your enquiry.

      To open a taxi company, you will need a fiscal advisor, here in Spain.

      The fiscal advisor will apply to the town hall for the taxi licences and also assist with the opening of the company and tax returns ect. Please note some town halls have a limited number of licences and once they have been taken no more will be released.

      Should you need any assistance with this, Mari Carmen, our fiscal advisor would be delighted to help you.

      Kind regards
      Nicola

  • David Ingman

    What is ‘PrivateHire” in Spain ? Is it Hire with driver? Does it not need an SP and blue number plate at back ? If you carry fare paying passengers even if they pay prior to journey is this not Alquiler conductor?

    • Jane

      Hi David

      There does not seem to mention of private hire in the article can you give us more information on your question?

      Kind Regards

      Jane

  • David Ingman

    The comment by Paul Meek mentions he is applying for “private hire” I know alquiler publico but never heard of alquiler privado. Any airport transfer business needs VT for Taxi or VTC for hire with driver.Blue plate and SP and of course a bus company autocares .Is this not correct ?

    • Ian C.

      Hi David

      Yes you are correct.

      Kind Regards

      Jane

  • Chris O’Brien

    hello, i am interested in working either with an established Chauffeur company or doing it myself, I am told i need a VTC for hire with driver licence.. could you possibly tell me if this is something you could help me with please?

    • Jane

      Hi Chris

      One of our team will be in touch with you direct to gather more details from you.

      Kind Regards

      Jane

  • tom

    hi im looking on opening a beer bike excursion in Spain but it has a capacity of 16 people 2 being staff. is there government restrictions of having one of these vehicles on the roads of Spain.

    • Jane

      Hi Tom

      We are unable to confirm on this at this point. If you would you like us to refer you to an external advisor please give us a call.

      Kind Regards

      Jane

  • Jayanth

    hi

    I wanted to start transport business here in spain. Details are explained below…
    1. if i have a 9 seated car can i do pickup school children door to door service??? if yes please let me know the documentation ….

    2. if i have car can i drive or hire a driver to attaching company like uber and cabifiy?? if yes please let me know the documentation ….

    3. if i , plan to purchase a truck or a big size of van (goods transportation ) to attaching amazon relay then what is the staring process like, getting a licence , EU transport licence from spain, and other complete documentation required???

    Please provide me this three details as im planning to do this business in spain.
    i hold B licence and im working with uber now … im in autonoma and Social security is active…

    thanks in advance
    jayanth

    • Jane

      Hi Jayanth

      As this is quite a detailed enquiry Ana will be in touch with you direct by e mail.

      Kind Regards

      Jane

  • carl owens

    Hi Can you help please. My wife has a small car hire company and has been asked if she can collect people from the airport and take them to the hire car at their destination in stead of delivering the car to the airport, if yes what licence is required to do this please? Also if I would be able to do that to help out, I do not get paid from the business. Thank you for your help.

    • Jane

      Hi Carl

      If you get paid for collecting people from the airport you require to be registered as a Taxi or Uber, but if this service is included in the car hire contract then it should be okay and no licence is required. You would need to speak to your insurer re liability insurance if it was you rather than your wife driving.

      Kind Regards

      Jane

  • Selena Hunter

    Hi there.
    I was wandering if someone could advice me on setting up a small chauffeur company here in Alicante and Benidorm.
    My friends and myself have properties that we rent out for holiday rentals and have tourist licences but do we need a license for picking the guests up.
    Also I have ppl wanting to be taken on shopping trips or day trips but if I was going to get paid for this do I need a special license ..
    Noone seems to know and it’s something I want to do now because of this pandemic and want passengers to feel safe and in a specially sanitized car but want to know the correct procedure is to go down .
    I also have a lot of friends who are disabled and want someone they know to get them.
    I do alot of this but dont get paid and now things are hard I’m thinking instead of waiting for my work to open up I could do this instead.
    I want to do everything legal and was told you were the best people to speak to..
    TIA
    Selena

    • Jane

      Hi Selena

      Ana will be in touch with you directly to answer your questions.

      Kind Regards

      Jane

  • Gary

    What license do I need to transport household removals ( furniture and personal belongings) for my clients in Malaga? What is the cost and how do I apply. I have heard that if I buy a new van they give you the license? Thanks.

    • Tracie Miles

      Good afternoon Gary
      I have emailed you under separate cover.
      Regards
      Tracie

  • Julie Calladine

    Hello.
    I’m looking to buy a 9 seater minibus for private use and taking out elderly clients who I care for on trips out eg Beach. Tapas Parks etc . I’m registered as care worker on autonomo. Can you tell me what insurance is needed and legal requirements thank you

    • Nicola Ryan

      Morning Julie,

      Thank you for your enquiry.

      To confirm the insurance, it would be best to check this with an insurer. The laws around the movement of people have changed over the years and are becoming stricter. You would need to be able to prove, if stopped, that the people in the minibus are connected to your business. If you have a contract with each client, we would recommend carrying this and also a copy of their passport. We hope this helps.

      Kind regards
      Nicola

  • Paul meek

    Could you tell me are Uber allowed to operate legally in Murcia if so what is the process of getting registered with them

    • Nicola Ryan

      Good Afternoon Paul,

      Thank you for your enquiry.

      It seems, according to google, Uber does operate in Murcia. The process to register we are not sure of. It would be best to contact them directly to discuss this in full. We hope this helps.

      Kind regards
      Nicola

  • Michael

    Hi, I want to move to spain and set up a businesses doing both chauffeur drive car/s and “man with van” . It would be ideal and certainly advantageous if the chauffeur drive business could collect and drop off clients from the airport. Its not essential but would definitely help the business succeed. Can you please advise how I would go about this? I’m still living in the UK at the moment. Thanks

    • Nicola Ryan

      Good Morning Michael,

      Thank you for your enquiry.

      It can be difficult to apply and secure a taxi plate, can we ask where you intend to settle in Spain.

      To set up any company/activity in Spain you need to appoint a Fiscal Advisor who will contact the relevant authorities to confirm if your venture is possible. If you hold a British passport you would need to apply for a visa in order to live and work in Spain. We will contact you directly to discuss this matter further and see where we can help.

      Kind regards
      Nicola

  • Kevin

    Hi, I wonder of you could help me. My wife operates a villa rental agency here in Spain and is often asked for airport transfers. They also have a wedding planning service and moving guests from hotels to the venue is also a service that is required. If the company purchased a van in their name and with their branding on the side then could they legitimately pay me to do the airport transfers and wedding day guest transport on their behalf as I have autonomo status?

    If that is the case then am I correct in assuming from previous comments that the guests cannot pay the company for this specific service and it would have to be part of a package (e.g villa + free transfers or included in the wedding planning fee)? Are there any circumstances where these services could be provided by me but also charged by the company as an additional item to the client?

    Thanks for any feedback.

    Kevin

    • Nicola Ryan

      Afternoon Kevin,

      Thank you for your enquiry.

      This would be a question for a fiscal advisor as this service would need to be noted under the companies “activity”. The company would also need the relevant licence and insurance. Our accountant would be delighted to have a consultation with you to discuss this in more details. Let us know if this is something you would be interested in.

      Kind regards
      Nicola

  • John Scarlett

    Please put a advisor in contact with me
    jmstopgeartravel@gmail.com

    • Nicola Ryan

      Afternoon John,

      We will contact you directly via email.

      Kind regards
      Nicola

  • Richard K

    Hi! I operate as an autonomo in Spain registered as a mudanza. Given the line of work occasionally my clients ask to jump in the van while taking their stuff to the new address. My understanding is that this is fine as the paid business is moving the cargo not the person. Can you clarify?

    • Nicola Ryan

      Good Morning Richard,

      Thank you for your enquiry.

      This would be a question for your accountant, it would be best to check which activities you have noted under your autonomo. If you have the activity to solely move cargo, you could be liable for a fine if you are stopped with clients in the van.

      We hope this helps.
      Nicola

  • gary

    hi i have a european operator licence and am based in ireland but thinking of getting a bus in alicante for airport transfers etc..is there much involved and is insurance experience?

    • Nicola Ryan

      Thank you for your enquiry Gary,

      To obtain a licence to transport people can be very difficult and expensive. Firstly you would need a consultation with a fiscal advisor to set up a company and confirm if the “activity” is possible. Rafa, our fiscal advisor would be delighted to discuss this with you. We will contact you directly to discuss this matter further.

      Kind regards
      Nicola

  • Paul

    How do you report an illagal taxi? The person has no residencia or Spanish licence and drinks and drives.

    • Nicola Ryan

      Morning Paul,

      It would be best to report this to your local Guardia Civil.

      Kind regards
      Nicola

  • Andy

    Hi there, could you send me pricing for hiring you to apply for a VTC liscences. I’m based near El Campello but happy to work in Alicante Center if it’s easier to get the liscence.

    Could you please include all fees involved.

    Thanks in advance,

    Andy

    • Nicola Ryan

      Afternoon Andy,

      We would not be able to assist with the licences, we are sorry. We can help you with the setting up of your company, should you need any assistance with this.

      Kind regards
      Nicola

  • michael

    Hi. I was wondering how long ? and how much would it cost to apply for a taxi licence in benidorm. This would be for a shuttle service from just 1 destination

    • Nicola Ryan

      Thank you for your enquiry Michael,

      It would be best to contact the Benidorm town hall. We do not deal with the licences, we are sorry.

      We can help you with fiscal advice (setting up of your company and what taxes ect you would pay, please do not hesitate to contact us again, should you need any further assistance with this.

      Kind regards
      Nicola

  • Graeme

    Hello I’m thinking of setting up a small tuk tuk business in Cambrils, from reading previous comments I think I would have to get a fiscal advisor to set up a company and apply to the local town hall for licenses. Would this be the correct process ?

    • Nicola Ryan

      Thank you for your enquiry Graeme,

      Yes, that is correct. If you would like a consultation with our fiscal advisor Rafa to discuss the taxes ect you would be liable for, please do not hesitate to contact us.

      Kind regards
      Nicola

  • Jason Sampson

    Hi there.
    I own and run a successful Chauffuer business in the UK and I’m interested in setting up a Golf oriented airport transfer business, between the Alicante and Murcia areas. This would be for online private bookings only, not taxi. Would it be the VTC licence I would need to do this?
    Can I also speak with your fiscal advisor?

    • Nicola Ryan

      Thank you for your enquiry Jason,

      You would require a VTC licence. The licences in the Alicante region can be hard to obtain. Rafa, our fiscal advisor would be delighted to discuss the running of the business and the taxes to be paid, however, he would not help you secure the taxi licence, we are sorry.

      Kind regards
      Nicola

  • Tony Potter

    Dear Spanish Solutions
    Like one of your previous contributors I too would like to set up Tuk Tuk (local tours) business in Spain at a place called Guardamar. So I will be looking for advice but strangely enough it may be worth my while to be put in touch with Andy from Cambrils to compare notes.
    Tony Potter

    • Nicola Ryan

      Thank you for your enquiry Tony,

      To do this you would need a fiscal advisor in this area, who will be able to contact the town hall to confirm if this is possible. They will obtain the relevant opening licences, certificates ect.

      Kind regards
      Nicola

  • Leigh

    So if I start a business providing tours to local towns as a guide I wont need a taxi licence?

    • Nicola Ryan

      Afternoon Leigh,

      This would be a matter for a fiscal advisor. They would check if this is possible with the local town hall/authorities and what would be needed. They can also help you set the company up ect. We hope this helps.

      Nicola

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