Bye Bye "plus valia" tax

[costa-brava]

This will be of interest to anyone thinking of selling. There are two "plus valia" (capital gains) taxes. The one Reiver asked about in the previous post charges tax on an assumed increase in the value of the property year-on-year. The other one is charged on the assumed increase in in the land value and is charged when a property changes hands. This tax was paid to the town hall; it has now been abolished as it was deemed to be unfair. Many owners have in fact seen a decrease in values.
So from here on anyone selling their house or flat will not have to pay Plus Valia. It ranges from about 500 to 2000 euros depending on the area and the footprint of the property on the land, so it is a significant saving.
Unfortunately the "ayuntamientos" will need to find this revenue elsewhere, which will no doubt mean a small increase in the local IBI tax.

[CSE]

This is too early. I have read few articles in Spanish newspapers. I have even found this one in English.
https://www.spanishpropertyinsight.com/ ... -property/
Basically the law will change, and it will be done quickly because of the amount it collects thus financially supporting councils.
I have also read that one cannot get the tax retrospectively returned. That is unless you have already started court procedure to reclaim the taxes.
https://elpais.com/economia/2021-10-28/ ... valia.html

[costa-brava]

Yes CSE, the door has closed on backdated claims but it is good news for anyone thinking of selling now. A few years ago I claimed on four apartments where I had lost when I sold. One was accepted and I got €900 back but for the other three they said that the land value had not fallen.
I'm fairly sure that the council budgets will now be covered by increasing IBI. So it will be another annual cost for owners.

[CSE]

I do not know if many here are selling right at this moment.
The advise is to still pay the tax. Then you will have to start the process of claiming it back. There is no indication of how long or what the cost of that will be.
Nothing is that simple in Spain!

[costa-brava]

The latest news is that they have replaced this tax with a fairer system. You will have two options and will be able to select the one that is most favourable to you. I think the decree will be out soon.