What is plusvalía tax
Posted: Thu Jul 27, 2017 8:54am
I am thinking of selling my property, probably at a 50% loss, but Brian down the pub says I will have to pay a gain tax called plusvalía tax. What is this?
Posted: Thu Jul 27, 2017 4:01pm
Legendary helpful member
Tell Brian down the pub that he doesn't know what he's talking about.
Plusvalía - Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana - is a Spanish municipal capital gains tax on the increase in the value (valor catastral - the value of the plot, instead of the market value of the property) since the last recorded sale etc.
When selling a property and buying another, you get relief from this tax up to the amount reinvested.
According to the town halls, when selling at a loss, you are still expected to pay the plusvalía tax.
However, El Pleno del Tribunal Constitucional - the Spanish constitutional court - have annulled the plusvalía tax on properties where property values have either devalued or remained static.
This change in legislation is retrospective, so if anyone has paid plusvalía after making a loss on selling a property up to four years ago, they can claim a refund.
Posted: Thu Jul 27, 2017 8:39pm
Thanks Jim
Yes Brian is the local know all big mouth, every town has one.
The bit I could not understand was this ''increase in the value'' ''the value of the plot''.
The only increase in value I have seen in Spain over the last 10 years is my electric bill. (Double).
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Posted: Fri Jul 28, 2017 4:31am
Legendary helpful member
Tha catastral, or land registry, value always goes up; it's the building on that land that can lose value. I agree that's a bit odd, and think it's based more on tradition than on reality, but we just have to live with the situation.
It's not just electricity - gas has doubled in price since we've been here. And our IBI has nearly trebled since the recent catastral revaluation. Pity our pensions haven't kept pace with price increases for the utilities.
Posted: Sun Jul 30, 2017 10:42am
windtalker wrote on Thu Jul 27, 2017 8:54am:
I am thinking of selling my property, probably at a 50% loss, but Brian down the pub says I will have to pay a gain tax called plusvalía tax. What is this?
Hi,
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Posted: Sun Jul 30, 2017 2:41pm
Thank you sambastimanlivecouk.
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