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Plus Valia tax declared unconstitutional

Posted by Vladan on 15/11/2019
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The Constitutional Court annuls the surplus value (Plus Valia) when the rate to be paid is greater than the profit obtained

The Constitutional Court has ruled once again on the Tax on the increase in the value of urban land (known as “Plus Valia”) and has declared it unconstitutional when it becomes confiscatory for the taxpayer.

Since the sentence has not yet been published in the BOE, it will be necessary to wait for said publication to resolve doubts about the possibility of claiming the return of these liquidated capital gains before applying the new jurisprudential criteria.

What is the Plusvalía tax in Spain?

The plusvalía is a local tax charged by the town hall on the increase in the value of the property when it is sold. The reason behind this tax is the increase in the property value due to the improvements done in the area by the local government.

If you want to know more about taxes when selling your property, advice on how to sell your property in Marbella or the Costa del Sol or would like us to give you more information on any matter related to this issue, don’t hesitate to contact us.

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