Plusvalia (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is a municipal tax charged when a property changes ownership. It is calculated based on the increase in the land's catastral value during the seller's period of ownership, not on the actual sale price. Following a 2021 Constitutional Court ruling, plusvalia cannot be charged if the seller makes a loss on the sale. The tax is legally payable by the seller in a standard sale, though in practice buyer and seller sometimes negotiate who bears it. Rates and multipliers vary by municipality and length of ownership. For a typical resale property held for 10 years, plusvalia might amount to 1,000 to 5,000 EUR, but it can be higher in prime urban locations where catastral values have risen sharply. New-build purchases from a developer are also subject to plusvalia, though the amount is usually minimal because the developer's holding period is short. Your lawyer or gestor should calculate the estimated plusvalia before you list or sell.
Plusvalia Tax — Spanish Property Glossary
Frequently Asked Question
Who pays plusvalia tax in Spain?
The seller is legally responsible for plusvalia tax. It is a municipal tax based on the increase in land catastral value during ownership. Since 2021, it cannot be charged if the seller sells at a loss.