If you have decided to sell your home at conveyancing law firm in Spain of Welex we will provide you with full advice for:
A safe sale of your Property in Spain and assist you in signing the contract for sale and take care of your Spanish tax liabilitie payments. For your total understanding and security, we will inform you from the beginning about the documentation you need to sell and all the expenses you will have to pay for it.
The Tax on the Increase in Value of Urban Land Capital gain. The so known Plusvalía Tax in Spain.
The plusvalía tax in Spain is a tax payable by the seller as a result of the increase in the value assigned to the land at the time of sale, taking into account a maximum period of 20 years.
It is important to mention that the Spanish Constitutional Court has stated that the municipal capital gain is unconstitutional when the amount to be paid is greater than the increase actually obtained by the taxpayer.
The Constitutional Court in Spain declares that when there is an increase in the transfer and the fee paid is greater than the increase actually obtained by the citizen, it would be taxing a non-existent income, virtual or fictitious, producing an excess of taxation contrary to the constitutional principles of economic capacity and non-confiscatory nature.
The tax rate is set by each municipality, but may not exceed 30 percent.