If you’re selling your property in Spain there are several costs and taxes you have to consider. Some, you’re likely to have heard of before, like capital gains tax or stamp duty. Others, however, are taxes specific to Spain that you may be less familiar with. One such charge is the plusvalía tax. In this article, we cover what exactly this charge is and how to calculate what you will have to pay. Armed with this basic information, you can navigate a Spanish property sale with confidence.
A tax on the value of the land
In Spain, every autonomous region has its own laws and tax regulations. Thus, the charges and taxes you will have to pay will depend on the region within which you live. This particularly applies to house sales, where additional taxes will be collected by the local town hall.
One of these taxes is the plusvalía tax. The objective of this charge is to tax the increase in the value of the land that the property is built on. This could be due to improvements to the area carried out by the local government or the community at large. The value is calculated year-on-year, from the date that you purchased the property. Bear in mind that this tax does not only apply to houses; even apartments have their corresponding percentage of land on which the building stands, so this tax is still applicable.
How to calculate the plusvalía tax
To calculate the plusvalía tax, you should contact a legal advisor. They will need the following information about the home and the potential sale:
- Details of the property’s location;
- A copy of the most recent IBI receipt indicating the current land value or valor suelo;
- Information about when the property was purchased and for what price;
- The sale price;
- And the estimated sale date.
Once the property is sold, the plusvalía tax is due 30 days after you have signed the sale at the notary.
It is important to seek professional advice about the amount of tax you are likely to owe. The plusvalía tax has been contentious for some time, as in many instances, the land on which the property stands will not have gained value – but the tax will be charged nonetheless. Therefore, it is important you do not assume plusvalía tax will not apply. Consult with your legal representative for an informed estimate.
Seek expert information about property sales in Spain
Navigating property sales in Spain can be complex, especially if Spanish is not your first language. As each region has its own legal nuances, it is important to seek the advice of a legal expert familiar with local procedure. With the proper advice, you can make sure plusvalía tax is properly factored into your budget.
Ábaco Advisers have more than 20 years experience in Spanish property sales. If you would like to receive more information regarding the sale process or if you wish to receive a cost estimate do not hesitate to contact us. Click here to complete this form and we will get to you at a time that is convenient for you. We look forward to being in touch.
5 October, 2020 3:53 pm
Thank you for a very good guide very helpful and to understand, also I would like to know that I have a property in Spain and have made a will where I have left it to my 3 daughters, would it be benifishal to change my will so that I donate it to them thus saving them to pay inheritance tax, I would be greatly appreciated for any advice. Peter Spring
5 October, 2020 9:25 pm
Dear Mr. Spring,
Thank you for contacting us.
In many cases a donation may be an easier option. Should you wish a quote and more information about our service please contact us at firstname.lastname@example.org
Thank you very much in advance.
With kind regards,
3 August, 2021 3:28 pm
Could you please advise of costs for tbe conveyance and disbursments of selling my property and the purchase of another of around the same value of €190,000
Regards D Oreilly
4 August, 2021 11:03 am
Thank you for contacting us Daniel, one of our customer care agents will get in contact with you as soon as possible with information regarding you case.
With kind regards,
25 August, 2021 9:21 am
We are residents in Spain and pay our taxes here. We would like to know if it’s better to sell our villa while still residents or to sell it as non-resident.
25 August, 2021 12:37 pm
Dear Mr. Moore,
The best advantage of selling it as a resident is that if it has been the main residence for at least the last three years before the sale and you are over 65 years of age, the profit tax would be exempt.
In the event that the above is not complied with, compensation with losses declared in personal income tax for the last 4 years would be allowed and the percentages to which the gain is taxed as a resident are as follows (information as of year 2021):
Up to 6.000 € 19%
From 6.000 € to 50.000 € 21 %
From 50.000 € to 200.000 € 23 %
Above 200.000 € 26 %
In the case of non-residents, the exemption or compensation for losses is not provided and the% is fixed, it would be 19%.
Hope this information is useful for you.
With kind regards,
6 September, 2021 12:58 pm
My sister sold her property in October 2020. She sold at a considerable loss and we were advised we needed to pay the plusvalia, but it would be reimbursed. Almost a year later and many emails and calls to the town hall, they have still not got to her property to review the tax. Can you offer any advice to get her money returned?
7 September, 2021 11:46 am
Unfortunately the respons from the authorities regarding the Plusvalía is extremely slow in many regions in Spain.
We would recommend having a local legal firm who can assist you or visiting the local town hall to get more information about how the process is going.
With kind regards,
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