Quick Answer: How is Plusvalia calculated in Spain?

How is Plusvalia tax calculated?

How is Plusvalía tax in Spain? To calculate the Plusvalia tax in Spain we have to take into account the increase in the value of the land over a maximum period of 20 years and the percentage applicable to this increase, as well as the tax rate (the percentage) approved by each local council, which cannot exceed 30%.

How much is Plusvalia in Spain?

One of the taxes that charges the selling of a property in Spain is the Plusvalía. But what is it? There are thousands of articles about how much will the buyer pay for the purchase of a property in Spain (aprox. 10% of the property price).

Is Plusvalia the same as Capital Gains Tax?

So, when comparing this tax with the Capital Gains Tax (CGT), the main difference is that the latter is fairer because it is based on the actual profit obtained with the sale, while the Plusvalia doesn’t reflect the real profit (or loss) obtained.

Who pays Plusvalia tax in Spain?

Plusvalia is in effect a local tax charged by the town hall on the gain made by the seller. Property owners are obliged to pay plusvalia when they sell a property and even heirs have to pay plusvalia when they inherit a property.

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How much tax do you pay if you sell a house in Spain?

Selling property tax: How much is selling property tax in Spain? When selling a property in Spain you need to be aware of the payment of Plusvalia and Capital Gains Tax. The payment of Capital Gains Tax is between 19% and 24% and Plusvalia would be a percentage of the sale.

How much is capital gains tax in Spain?

Any capital gain from the sale or transfer of assets located in Spain has a fixed tax of 24% for Non-Residents, being 19%, if it is resident in any other country of the European Union, Iceland or Norway.

How much is IBI tax in Spain?

The rates can vary a great deal, ranging between 0.4% and 1.30% – and this is a factor to take into consideration when you are buying a home. However, homeowners generally find that IBI in Spain is far cheaper than equivalent taxes in their home country.

What are the costs of selling a house in Spain?

Generally speaking in Spain on average the buyer will end up paying around 12%-14% on fees and taxes and the seller around 23% on the profit made from selling the property.

Plusvalía (Seller)

Purchase price 350.000
Property transfer tax 8% 28.000
Notary fee 800
Registry costs 600
Gestoría 400

How does capital gains tax work?

What Is a Capital Gains Tax? You pay a capital gains tax on the profits of an investment that is held for more than one year. (If it’s held for less time, the profit is taxed as ordinary income, and that’s usually a higher rate.) You don’t owe any tax on your investment’s profit until you sell it.

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What are municipal taxes in Spain?

Municipal Spanish property tax

This tax is the Spanish equivalent of the rates or council tax, and is collected by local government. The tax base is the cadastral value of the property and the rate varies from 0.405% to 1.166% depending upon the region.

What is Impuesto Municipal de Plusvalía?

“Plusvalía Municipal or Impuesto Sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana (IIVTNU)”, is a local tax administered by Town Halls in Spain which aims to measure and tax the increase in value on an urban property when it passes into new ownership, either through sale of purchase or by any other …