Legal tip 41. What is the Plusvalia Tax?
Wednesday, February 11, 2009 @ 7:46 AM
Plusvalía (Local Capital Gains Tax) named in spanish Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana is a municipal tax on the increase in the value of the urban land since the last recorded transfer
The tax obliged is the seller, except for cases of acquisition by Inheritances or Gifts, where the tax payer is the acquirer.
Taxable amount or based is obtained by applying a rate, different for each municipality, to the value of the property at the time of the transfer, the number of years that the previous owner had the house is also taken into consideration. The more years the less tax burden.
There is a tax relief if you reinvest money from the sale of an urban house into another main address, the relief will consider the amount of reinvested money.
It must be paid within 30 days from the signature of the sales deed, or within 6 months in case of inheritance.
Sevilla Door by HeartIndusrty at Flickr.com