{"id":14988,"date":"2021-04-28T11:03:18","date_gmt":"2021-04-28T09:03:18","guid":{"rendered":"https:\/\/euroval.com\/what-is-the-municipal-capital-gains-tax-and-how-to-calculate-it\/"},"modified":"2025-11-20T11:21:50","modified_gmt":"2025-11-20T10:21:50","slug":"what-is-the-municipal-capital-gains-tax-and-how-to-calculate-it","status":"publish","type":"post","link":"https:\/\/euroval.com\/en\/what-is-the-municipal-capital-gains-tax-and-how-to-calculate-it\/","title":{"rendered":"What is the Municipal Capital Gains Tax and how to Calculate It"},"content":{"rendered":"
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The so-called municipal capital gains tax is a fee collected<\/strong> 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. <\/p>\n<\/div>\n

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Personalized Capital Gains Budget<\/b><\/p>\n

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PERSONALIZED QUOTE<\/a><\/p>\n

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Appraisal Company Approved by the Bank of Spain<\/b><\/p>\n<\/div>\n

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When is the capital gains tax paid<\/strong><\/h2>\n

Therefore, the municipal capital gains tax will be paid each time a property or land is sold<\/strong>. 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.<\/p>\n<\/div>\n

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How much do you pay in capital gains tax<\/strong><\/h2>\n

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. <\/p>\n

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<\/strong> 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<\/strong> cadastral value of the land where the construction you are going to sell is located. <\/p>\n

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. <\/p>\n

Do you need to know the cadastral reference of a property? We explain how in our guide.<\/a> <\/p>\n<\/div>\n

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Personalized Capital Gains Budget<\/b><\/p>\n

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PERSONALIZED QUOTE<\/a><\/p>\n

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Appraisal Company Approved by the Bank of Spain<\/b><\/p>\n<\/div>\n

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What You should Know to Calculate the Tax<\/strong><\/h2>\n

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<\/strong>, and it can be consulted online. <\/p>\n

It is also a value that is reflected in the IBI tax<\/strong> (Property Tax), also of a municipal nature. Your latest IBI receipt will include the updated value of the land in question. <\/p>\n

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. <\/p>\n

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. <\/p>\n

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Who pays the municipal capital gains<\/strong><\/h2>\n

From what we have explained, it is understood that the tax is paid by the seller of the property<\/strong>. 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.<\/p>\n

Do you want to sell your house? \u27a4<\/span> Know all the expenses you are going to have<\/a><\/p>\n

How to calculate the municipal capital gains tax<\/strong><\/h2>\n

You should know that the fee varies greatly from one autonomous community to another and the difference can be quite large between them. <\/span><\/p>\n

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. <\/span><\/p>\n

Once you have all the data: <\/span><\/p>\n