What is the plusvalía tax?
The plusvalía tax has become a very controversial legal issue when dealing with laws around Spanish real estate.
It is a tax which works by taxing the increased value of urban lands when sold. However, the Constitutional Court has declared it should not apply when a property is inherited, donated or when a property is sold at a loss.
Giving you the opportunity to reclaim any plusvalía tax that you almost certainly would have paid when selling, inheriting or donating a property.
New Spanish court rulings
In light of the ruling, taxpayers have the right to reclaim any tax that they may have already paid, with the average reclaim value being between €3,000 to €6,000. Therefore, it is always advisable to make an appeal.
Each appeal is dealt with my the local town hall and can be treated differently.
To find out exactly how to make an appeal against you town hall download our free guide to reclaiming Plusvalía tax.
How is the plusvalía tax calculated?
The claim amount depends on the value of the land and could even be much higher as the amount to be paid is not based on the percentage of the profit/loss on the transition of the property (e.g. the sale of a house), rather the “cadastral value” and the amount of years that the property been owned for.
Have I paid the plusvalía tax?
In the past, the tax has been paid regardless of whether a profit was made when selling a property and because of this concerns have continued to rise over the years leading to questioning of the legitimacy of the tax.
What is certain is that the tax will have applied on all property sales and even those properties which were donated or inherited.
If you think you are eligible to claim or have any specific questions, request a no obligation consultation and a member of our team will get in touch.
3 Comments
My mother died 24th April, 2018.
I inherited the house, my father died in 1996.
I had to pay the sum of just under 14,000 plus valia tax, I have now been informed I can claim this back, my name was on the deed to our property along with both my parents.
My question is………can I really claim this money back now, I know the law has changed earlier this year that people DO NOT have to pay this tax anymore anyway.
Thanking you
My mother died 24th April, 2018.
I inherited the house, my father died in 1996.
I had to pay the sum of just under 14,000 plus valia tax, I have now been informed I can claim this back, my name was on the deed to our property along with both my parents.
My question is………can I really claim this money back now, I know the law has changed earlier this year that people DO NOT have to pay this tax anymore anyway.
All I want to know is a simple yes or no, then I can get in thing moving with my late mothers gestoria.
Thanking you
Dear Hilary:
Yes, you can claim back the plus valia tax. Just keep in mind, that in most town halls are not returning the money when the claim is done by the administrative proceeding, so you will have to go to trial with the consequent expenses of lawyer and procurator.
Regards.