What is Plusvalía Tax?
This is a Tax applied by the local council to the land of the property that you sell, inherited or gifted. It is applied to the person doing the selling or the person that receives the property from inheritance or as a gift.
It takes in to account that when it was first bought the land with the property over the years increased in value, so the Tax is applied.
However, what it does not take into account is a recession in land prices, so you can in fact being selling your property at a loss, or when you inherited it the price of land had decreased.
Yes, I know it does seem to lack common sense, but unfortunately it is still applied.
Contact us now to learn how to claim back the Tax, with our “No Win, No Fee” policy you cannot lose.
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
So who can claim for this?
Therefore if you have transferred your property in the last four years at a loss you can now claim from the Local Council the over tax paid.