Plusvalia Tax


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This topic contains 3 replies, has 3 voices, and was last updated by Profile photo of Mark Stücklin Mark Stücklin 11 months ago.

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  • #58009
    Profile photo of Anonymous

    Hi there long time reader first time poster here. I recently sold my apt in Marbella. 3 bedroomed apt of about 1700 sq ft if that makes any difference. My solicitor initially told me the plusvalia tax would be around €3000. The sale went through at the end of January. The solicitor has now contacted me and told me the plusvalia tax is €4500. My question is how can I find out how to calculate the plusvalia tax or do I have to take my solicitors word?

  • #119570
    Profile photo of Anonymous

    Plusvalia is a tax levied by the local town hall. Go and ask them what the tax is and then you will know if the solicitor is telling the truth.

  • #181785
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)

    Silly questions, but did you pay within 30 days? If not there would also be penalties for late payment.

  • #188492
    Profile photo of Mark Stücklin
    Mark Stücklin

    Someone asked me yesterday if a non-resident buyer (a buyer who does not live in Spain) has to pay the Plusvalía Municipal Tax. That is what they had been told by Barcelona’s municipal tax office. There seems to be some confusion on the subject so I checked it with a lawyer. I hope the explanation below clarifies the issue.

    This Plusvalía Municipal tax is usually paid by the vendor, but sometimes the buyer agrees to pay it – it’s part of the negotiation process. Be warned that if the vendor fails to pay it, the buyer then becomes liable for the unpaid tax, with interest!. Also, the town hall might not register the property for local real estate tax (IBI) purposes, until the Plusvalía is settled. That means the new owners starts accumulating unpaid IBI tax bills (without notification), plus penalties and interest, all without knowing it.

    When the vendor is a non-resident, the law states the buyer is liable for this tax, even if the parties have agreed that the vendor will pay. So when you buy a property in Spain, especially from a non-resident vendor, make sure you or your lawyer checks that the Plusvalía Municipal has been paid by the vendor within 30 days of the sale.

    The safest way to play this, from a buyer point of view, is to agree to pay this tax using funds deducted from the agreed sale price. That way the buyer can be sure the Plusvalía has been paid. This is particularly relevant when buying from a vendor who does not live in Spain (non-resident).

    More info: The Plusvalia Municipal Tax

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