The Plusvalia is set by the ayuntamiento and is detached from the sale price.
At what point in my post did I say anything at all about plusvalia? I think you’ll find I referred specifically to capital gains tax which has nothing whatsoever to do with plusvalia or the valor catastral the plusvalia is based on, as well as being paid to a completely different tax authority.
Neither do any of these things have anything whatsoever to do with the purchase price of a property or the resale price of a property which the original poster here referred to.
As Katy points out, it’s what the authorities say it’s worth that matters.
Katy doesn’t have the slightest clue what she is talking about and doesn’t understand the difference between capital gains tax paid to hacienda on the difference between bought and sold price, valor catastral set by the province and plusvalia paid to the province on the land value increase.
You still get a bill if you bought and sold at the same price provided more than one year has passed. Their calculations always assume an increase in value, even in a falling market..
On the plusvalia yes, because it assumes the land the property sits on increases in value as the roads and infrastructure around it are maintained and improved by the local authority. But as I’ve now pointed out several times, the buying, selling and assumed market price of a property bears no relation whatsoever to the the valor catastral and plusvalia that’s based on it.
Plusvalia is a land tax not a property tax and doesn’t take buying and selling prices into account. Which I’d like to remind you was the point the original poster in this thread was making.