taxes

What is the plusvalía tax when selling property in Spain?

Plusvalía municipal (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana) is a local tax charged by the town hall on the theoretical increase in land value during your ownership period.

It is technically the seller's responsibility, though this can be negotiated.

Following a Constitutional Court ruling in 2021, plusvalía cannot be charged when there is no actual gain, and a new calculation method was introduced.

You now choose the lower of two methods: the traditional method (based on catastral land value × coefficients × years of ownership × municipal rate) or the real method (actual gain × municipal rate).

The tax varies significantly by municipality and property.

For short ownership periods with modest gains, it may be minimal.

For long-term ownership, it can be substantial.

Your lawyer calculates the exact amount before completion.

WOW-Estates factors plusvalía into cost estimates for both buyers and sellers.