This is a tax payable upon income derived from the sale of property. The tax is payable on the increase of the value of the property as compared to when it was bought.
Who should pay it?
Normally the seller of the property has the responsibility to pay the tax and so once again care should be taken that there is no clause in the contract for purchase that states that the buyer is responsible for the plusvalía tax, unless of course this agreed to.
The tax is payable within 30 days of the purchase taking place and is calculated as follows:
The tax rate is 30% of the following value:
The value of the property multiplied by the number of years held multiplied by local coefficient (between 2.8% and 3.7% depending on number of years the property owned).
Exemptions to Plusvalía
There are some important exemptions from paying the plusvalía tax. For example the transfer of a property pursuant to a court order in a divorce does not attract the payment of tax. If you bought the property before 1986 or if the property is your habitual residence and you are more than 65 years old then you are exempt from the tax.
Discounts are also possible such as when a property is inherited by a close family member. In such a case any plusvalía tax payable may be reduced by 95%. There are conditions attached to this discount such as not selling the property for a period of time following the death of the original owner.
Property owner in Spain? Need help managing non-resident and rental income tax in Spain?