What is the Tax?
The Plusvalia Tax is presented to you by the local Council when you sell your property.
They assume your land has increased in value since you bought it and levies the increase in value of the plot on where the property is built when it is transferred by way of purchase and sale, inheritance, gift or other.
Three conditions have to be met in order to have to pay the tax:
- That a property is transferred.
- That the property is urban land
- That there has been a real increase in value of the plot.
How is the tax calculated?
The tax is worked out by applying the rateable value of the plot with some coefficients and tax rates approved by the Local council.
Where the property is located and how much time has elapsed since the last transfer.
This form of calculation does not compare the real value of the land at the time of the purchase and sale, but just works it out taking the rateable value of the plot at the time of the transfer.
So the Council issue the Plusvalia Tax irrespective as to whether there has really been an increase in value.
Why is this tax being questioned now?
In this period of economical crisis a lot of properties have been sold at a loss by the owner and thus this tax is being questioned as result of the non existence of an increase in value.
However the Local Council keeps on charging the plusvalia tax.
Judgement from the Constitutional court.
In February 2017 the Constitutional court has resolved that the owners of property that sell at a loss are not liable to the payment of the Plusvalia Tax.
Reclaiming Plusvalia Tax
Therefore if you have transferred your property in the last four years at a loss, you can claim from the Local Council the full amount paid for this tax.
However, you will have to prove somehow that there has been a decrease in the value of your land and you may be required to produce a valuation of the plot.
How to proceed in the future?
Nearly all the Local Councils keep maintaining this method of calculation for the plusvalia tax.
Therefore until there is a change in the law in principle if you transfer the property at a loss you will have to pay the tax and later apply for the refund.
If you need any further information on this subject please contact us on
Please note the information provided in this article is for general knowledge only and is not to be construed or intended as substitute for professional legal advice.
Lawyer within the firm
Rafael Berdaguer Abogados based in Marbella, Spain.
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