(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 buyer.
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.
3.- Notary and Registry expenses: Unless agreed differently. Notary costs are to be paid by seller but one copy of the deeds which will be paid by the buyer. Buyer will pay Registry expenses