Can you buy a VTC licence if you have debts or your assets have been seized?

It is possible — the problem is buying it without realising. A private hire licence may be subject to administrative seizures, and the licence holder’s debts to the tax authorities or social security may block the transfer at the worst possible moment: once you’ve already paid your deposit. This question is, quite literally, the very reason due diligence exists.

What might be swept under the carpet:

• Seizures on the licence recorded due to the holder’s debts: the transfer cannot proceed until these are lifted.
• Debts owed to the Spanish Tax Agency (AEAT) or the General Social Security Treasury (TGSS) by the seller: certificates confirming that these debts are up to date are a requirement for the application, and a seller who fails to obtain them will have a transfer that is on hold indefinitely.
• Pending penalties that may result in a seizure or complicate the licensing process — the reason for this is explained in what penalties a private hire vehicle accumulates.
• Civil encumbrances: the licence used as security for another loan, or ownership disputes (unresolved inheritances, companies with conflicting shareholders).

Now, the nuance that distinguishes the professional buyer from the panicked one: a documented encumbrance does not always scupper the deal. If the attachment is quantified and the seller cooperates, the debt can be settled at the closing itself, deducted from the purchase price — the money held in escrow first pays off the encumbrance and the remainder goes to the seller, and you receive the licence free of encumbrances. This turns some ‘problem titles’ into discounted purchases with a bit of legwork; what never works is discovering the encumbrance in week four.

The defence is the usual procedure: documentary verification before the deposit (ownership, encumbrances, planning permission, penalties — the basic checks for any certified licence), cross-checking against the official register (step-by-step guide), and funds held in escrow only until the contract is signed. This is exactly the sequence for the escrowed closing; and the warning signs that should make you stop in your tracks — silence regarding encumbrances is one of them — are set out in how to avoid fraud.