What is the Plusvalia Municipal Tax vendors get charged when they sell a home?
Plusvalía municipal (Municipal capital gains) is a local tax payable to your local town hall upon the sale of your property.
Plusvalía tax is based on the increase in value of land, not the apartment or villa sitting on the land. The rationale behind it being that the town hall has invested over time in services and infrastructure which has led to the appreciation in land value, and that as such CGT should be paid on the notional profit made upon selling.
The San Roque town hall sets the rate of plusvalía tax for Sotogrande and can vary between neighbouring municipalities.
The Plusvalia Municipal Tax tax is based on the increase in the official “Cadastral” value of the land on which a property is built.
On your annual IBI bill you will see the “valor del suelo” for your property, and it is this value, which increases over time, that is used to calculate the plusvalía municipal tax. The amount of tax due will depend on how long the seller has owned the property: the longer the period, the higher the amount of tax. The town hall has a formula to work out the plusvalía due and is based in the time the property has been owned. It is the vendor who is legally liable to pay the tax. Like with the purchase taxes the plusvalía is within thirty days from the date of sale.
If you are looking for assistance selling or buying a property in Sotogrande, please contact us, we would be happy to help.
Disclaimer: Please note the material contained in this blog is for informational purposes only and does not constitute or imply a substitute for professional financial, legal or taxation advice. This information is general in nature and has not taken into consideration your specific personal circumstances. It is strongly recommended you get professional advice from regulated and/or registered qualified professions: financial advisors, accountants, lawyers.