There has been much discussion and confusion but the requirements for UK licence holders driving within the EU as well as for EU licence holders driving in the UK are now clear and as follows, with official links thanks to the House of Commons Library.
UK photocard driving licences remain valid for visitors driving in Spain though those with a paper driving licence only, or a licence issued in Gibraltar, Guernsey, Jersey or the Isle of Man, may need to purchase an International Driving Permit (IDP) to drive in some EU countries and Norway. The type of IDP needed (there are three), depends on the countries in which they wish to drive. The UK Government recommends checking with the relevant embassy before travelling.
Drivers should check that their insurance policies cover driving abroad. Any UK car insurance policy that provides the legal minimum coverage for travel in the EEA remains valid for driving in Europe but must be accompanied by an insurance ‘green card’, an international certificate of insurance provided by insurers that guarantees the minimum third-party motor insurance cover required by law. The British Government is hoping for the EU to issue an Implementing Decision allowing the UK to be in the circulation zone in which a green card is not needed but until that decision has been confirmed, the Government advises all UK visitors driving their own vehicle in Spain to obtain a green card. As well as a green card, UK-registered vehicles must display a GB sticker at the rear even if the number plate includes the letters GB on their own or with a Union Flag, features which in some other parts of the EU mean the sticker’s not required.
Those who live in Spain and are currently using a UK driving licence, will have to exchange it for a local one. The deadline for doing so varies throughout the EU but in Spain it’s 1 July this year. These licences remain valid for UK visits, and with EU insurance, an IDP is not needed, though an insurance green card or other proof of insurance is required for their own vehicle when driving in the UK. Although exchanging a UK licence for a Spanish one remains straightforward for those who registered as resident before the end of the Transition Period and also notified Tráfico of their intent to exchange their licence, the rules have not been confirmed for the exchange of licences held by those who moved to Spain after 1 January this year.
Anyone who is an EU licence-holder living in the UK including those who exchanged here and return to the UK to live permanently can continue to use their Spanish licence as long as it remains valid, subject to UK licence renewal requirements. These require an EU licence to be changed to a UK licence when the driver reaches 70 years of age or three years after the holder becomes resident, whichever is the later. UK residents with an EU licence can exchange their licence for a UK one, if they wish to do so, without the need to take a test again.
The information above is currently officially confirmed, but as on so many other issues negotiations continue, not least about exchanging licences, and so these rules could change.