Do I have to pay plusvalia (capital gains tax) if I have lost money with the sale? Can I claim my capital gains tax? We tell you the current situation of this local tax.

For several years now (2017), we have been hearing that the plusvalía is a local tax declared unconstitutional by the Constitutional Court, but what has happened since then? Is it completely unconstitutional or does it have nuances? What is certain is that since 2017 the tax has remained and only in certain cases it may not be settled.


Esther Sánchez Páez

7/19/2021 2 min read

The plusvalia tax or Tax on the Increase in Value of Urban Land (IIVTNU) is a tax that taxes the revaluation of a real estate property when it is transferred, either through sale, donation or inheritance. In cases of sale, it is the seller who must pay the tax, unlike in cases of donation or inheritance, which must be paid by the individual or heir who receives the property.

To calculate the amount of the tax, it is necessary to take into account the cadastral value and the years that the property has remained in the possession of the seller or the donee. The city councils establish revaluation rates and from there the tax rate, also regulated by them, will have to be applied. To calculate the capital gain, most municipalities have automatic calculators on their websites.

plusvalia tax, how to claim it

But what happened in 2017? The Constitutional Court declared the tax null and void as long as there were losses in the transfer of the property. This situation affected thousands of people who had bought prior to the economic crisis and who had transferred years later, with a demonstrable quantitative loss. However, the Supreme Court has clarified in different sentences what and how a loss is demonstrated, being the deeds the most reliable means of proof, although a judicial expert's report can also be useful.

In addition, the question has also been raised that, even if there is a gain and if it is lower than the liquidation received for the capital gain, highlighting the confiscatory nature of taxation. The Supreme Court has resolved this question, being aware that it is "scarcely disrespectful to the demands of tax justice". But on the other hand, nothing has been fixed with respect to cases in which the tax assessment amounts to 50% or more of the profit obtained. For this, a draft law regulating the tax is still awaited, but in the meantime the municipalities continue to settle the tax.

It is therefore advisable to check each one of the capital gains tax liquidations, since the city councils are not resolving in favor of the taxpayer. In addition, it is recommended to pay the tax and later claim it, since the interests are always increasing. It must be taken into account, that the tax claim requires two parts: one in administrative proceedings, in certain cases even to the Economic Administrative Court and another one in court.

From Bufete Murillo Cinco we are experts in this matter, having claimed an endless number of capital gains contrary to our Constitution, so if you want us to study your plusvalia and confirm if we can claim it, please contact us without commitment.


Abogados Especialistas en Divorcios

Real Estate Lawyers

Plusvalía (IVTNU) ¡Reclámala!

Bufete Murillo Cinco

Dirección: Marbella, España

Horario: Lunes a Viernes: 09.00 a 18.30 Sábados: 09.30 a 13.00