Skip to content
The so-called municipal capital gains tax is a fee collected by town councils throughout Spain. It sets an amount to be paid (the amount of the fee) based on the value of the land of a home, premises or any type of building, not the construction itself.
Personalized Capital Gains Budget
Appraisal Company Approved by the Bank of Spain
Contenido
- 1 When is the capital gains tax paid
- 2 How much do you pay in capital gains tax
- 3 What You should Know to Calculate the Tax
- 4 Who pays the municipal capital gains
- 5 How to calculate the municipal capital gains tax
- 6 Capital gains in case of inheritance
- 7 Calculate your tax online in some town councils
- 8 Deadlines to pay the municipal capital gains
When is the capital gains tax paid
Therefore, the municipal capital gains tax will be paid each time a property or land is sold. You must settle this tax with your town council, which is based on the difference between the purchase price and the sale price.
It is true that there are rulings from the Supreme Court and the Constitutional Court that exempt the seller from paying this tax in the event of losses from the sale.
How much do you pay in capital gains tax
This is one of the big questions for everyone who is going to sell a property. The answer is that it depends on each town council. They are the ones who collect, manage and set the amount to be paid.
If you are in a situation where you want to sell a house, premises or simply a piece of land, the best thing you can do is consult with the economic services of the town council where the property is located to find out the amount of the tax.
It will also be in this town council where you will have to consult the cadastral value of the land or in the Land Registry itself. This is important because the capital gains tax is calculated based on this cadastral value of the land where the construction you are going to sell is located.
Specifically, you have to take into account the cadastral value of the land at the time you acquired it and the value at the time you sell it. The difference between one figure and the other is what establishes the amount of the tax.
Do you need to know the cadastral reference of a property? We explain how in our guide.
Personalized Capital Gains Budget
Appraisal Company Approved by the Bank of Spain
What You should Know to Calculate the Tax
As we have already explained, the first thing you need to know is the cadastral value of the land you are going to sell. You can consult this at your town council or in the Land Registry, and it can be consulted online.
It is also a value that is reflected in the IBI tax (Property Tax), also of a municipal nature. Your latest IBI receipt will include the updated value of the land in question.
You should also know how many years have passed from the time of acquisition until the day the sale occurs. The amount of the tax also takes this data into account, as it sets a maximum of 20 years as a tax period. If you have owned that land for longer than those 20 years, the amount will not be modified, it will be the same as if you had owned it for those 20 years.
However, the town councils set different coefficients depending on the years that you have owned the property. You can consult the scale of percentages of the tax at your town council.
Who pays the municipal capital gains
From what we have explained, it is understood that the tax is paid by the seller of the property. Other conditions can be agreed and the buyer can pay said amount, but that falls within the personal negotiation between buyer and seller.
In addition, if the seller does not have legal residence in Spain, then the buyer will be responsible for settling this tax.
Do you want to sell your house? ➤ Know all the expenses you are going to have
How to calculate the municipal capital gains tax
You should know that the fee varies greatly from one autonomous community to another and the difference can be quite large between them.
The reason is the current legislation that allows it, such as the Regulatory Law of Local Finances and then each municipal ordinance set by each town council.
Once you have all the data:
- Cadastral value at the time of purchase or acquisition.
- Current cadastral value.
- Years of ownership.
- Percentages of the tax of the town council in question.
From here it will be easier to calculate how much you will have to pay, at least approximately.
You will only have to multiply the cadastral value of the land by the number of years of ownership and apply the corresponding annual percentage (set by each town council). Apply the tax rate to that (it cannot exceed 30%) and you will obtain the cost of the tax.
After that, you should take into account that some town councils set bonuses for certain groups or if certain conditions are met. These also depend on each town council.
Capital gains in case of inheritance
If it is the sale of a property or land from an inheritance, you must also take into account the inheritance tax. This tax also varies depending on each autonomous community.
In these cases, it is best to consult with the municipal services beforehand to avoid possible scares or surprises.
It must also be said that the legislation varies greatly in terms of years, since changes in municipal governments and those of the autonomous communities usually involve changes in the ordinances on taxation and tax collection.
In this article we explain why it is so important to properly value an inheritance.
Calculate your tax online in some town councils
Some large town councils make it quite easy to calculate this tax. Many of them even have small online calculators so you can know an approximate figure.
Others can calculate it for you in their citizen service departments on the telephone helplines.
Especially since the last year and a half in which the coronavirus pandemic is among us, many town councils throughout Spain have intensified their citizen service policy to facilitate this information required by citizens without having to go to the headquarters in person and avoid contact between people.
Deadlines to pay the municipal capital gains
As a last important piece of information, we have to talk about the deadlines for settling the tax.
The times are quite strict and from the moment the change of ownership of the property is made, there are 30 days to settle this tax. Obviously, this tax is unique and is only paid when the sale occurs.
In the event of not paying this capital gain within said period, you face having to pay it with an added surcharge for late payment. To this you can add a fine for not paying it on time.
Share Article
Recommended Articles
Essential Keys to Regularize your Photovoltaic Plant in the Cadastre
In recent years, Spain has experienced a very significant expansion of photovoltaic plants, both in number and in occupied surface area, consolidating itself as one
Value of a Painting: how to Know the Price of a Canvas
To know the value that a work of art can reach, you must first make a list of previous investigations on the work to be
Difference between Usable and Constructed Area
If you are thinking of buying a home, you may be wondering about the differences between the usable area and the constructed area. This way
Contact Us
If you would like information or to contact us, please complete the following fields, and we will respond as soon as possible.
