Spain Property Guide - January 2022 Issue 7

PLUSVALIA:
value added
tax for
property in
Spain
The ‘Plusvalia’ tax is one that every property owner
and new buyer should become familiar with, as it is
a tax applicable to any increase in the value of the
land your property stands upon when it is sold to a new
owner. It is important to note that the tax only applies
to the value of the land, and not to the property on it.
Furthermore, it only affects dwellings that are classified
as urban, not those defined as ‘rustic’.
Each municipality is responsible for collecting this tax
themselves, although some of them may delegate
its collection to their local Provincial Revenue Board.
Either way, it is due within 30 days of the property being
transferred to the new owner.
WHO PAYS PLUSVALIA?
In the case of a property sale, the seller must pay the
tax. If the property is left as an inheritance, then the
person receiving the property is responsible for paying
it.
HOW IS IT CALCULATED?
Plusvalia tax is calculated by multiplying the tax base
by the tax rate:
a) The tax base is the increase in value that the property
has experienced during the time it has been owned
by the seller. This increase is calculated by multiplying
the cadastral value of the property at the time of
its sale by the annual rate set by each municipal
council (with the maximum limit established by law).
The calculation is based on whole years, not on
fractions of years.
b) The type of lien is the rate set by the municipal
council, and there is a 30% limit established by law.
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