How to obtain a taxi licence: buying a taxi licence from a holder step by step

To obtain a taxi licence in Madrid, the most common route is to buy a taxi licence from a holder who is retiring or leaving the profession, because the City Council rarely issues new licences. The purchase is not unrestricted: the buyer must meet the requirements of the regulations, starting with holding the municipal driver permit, and the City Council has to authorise the transfer before the change of holder takes effect.

This article focuses on that route, the transfer. If you want an overview of the process, including the difference between a licence and a driver permit, start with our guide on how to get a taxi licence.

Each city council limits the number of taxi licences to balance supply and demand. Since calls for new licences are exceptional, anyone who wants their own taxi turns to the licences that already exist. The holder transferring it usually asks for a price, and that price is set by the market: it depends on demand, on the economic situation of the sector and on whether or not the deal includes the vehicle. That is why you will not find figures here, which in any case go out of date very quickly.

A taxi licence is a major investment and it is worth examining it as carefully as you would a home. Before signing anything, check:

• That the licence is valid and has no suspensions, proceedings or pending penalties that would prevent its transfer.
• That the seller is able to transfer it: the regulations may set conditions on how long it has been held or the circumstances in which a transfer is allowed.
• What the deal includes: just the licence or also the vehicle, the meter, the roof light or membership of a dispatch service.
• The condition of the vehicle, if you are buying it: age, mileage, servicing, MOT-equivalent inspection (ITV) and whether it will remain fit for service over the coming years.
• Debts and charges attached to the licence or the vehicle.
• Whether there are employed drivers working with that licence and what their situation will be.

The prudent approach is for the contract to be conditional on municipal authorisation and to have it reviewed by an agent or lawyer with experience in the sector.

• Agreeing the price before you have your driver permit. If you then fail the exam, the deal falls through.
• Only budgeting for the price of the licence. The vehicle, its equipment and the fixed monthly costs weigh as much as the purchase; we break them down in making a living with a taxi.
• Not checking the vehicle requirements. Taxis must meet technical and environmental conditions that change over time.
• Signing without advice. Transferring a licence has tax and administrative implications that you should know about in advance.

Licence transfers are governed by the regional regulations on urban transport in passenger cars and by the municipal taxi bylaw, within the general framework of the sector that we summarise in the national taxi regulations. These rules change, so always check the current version on the Madrid City Council website before starting the procedure.

Many taxi drivers start as employees of a licence holder to get to know the trade, the hours and the real earnings before investing. You only need the municipal driver permit; we explain it in the requirements for working as a taxi driver.

And if what you are looking for right now is an official taxi to Barajas, we work only with taxis licensed by Madrid City Council and a fixed fare by area: check the prices on our airport fares page or order one directly from central Madrid.