Plusvalía Municipal in Spain – 2025 Guide

The Plusvalía Municipal, officially called the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), is a local tax levied by Spanish municipalities when urban real estate is transferred. Despite its complicated name, the concept is simple: this tax measures the increase in the value of the land on which a property is located — not the building itself.

Unlike the national capital gains tax (CGT), which is based on the actual profit made from a sale, the Plusvalía is calculated on the theoretical appreciation of the land’s cadastral value during the period of ownership.

• Urban land only: The Plusvalía tax only applies to properties located on urban land (terrenos de naturaleza urbana). Rustic or rural land is excluded.
• Triggered by ownership transfer: The tax is due when a property is sold, inherited, or gifted — regardless of whether any real financial gain was made.
• Charged by local town halls (Ayuntamientos): Each municipality sets its own rates and coefficients, within national limits.

Whether you’re a resident or a non-resident, if you transfer ownership of an urban property in Spain — whether through sale, donation, or inheritance — you (or the recipient) may be liable for this tax.

In most property transfers involving urban real estate in Spain, the person receiving payment or transferring ownership is responsible for paying the Plusvalía Municipal. However, there are important exceptions depending on the type of transaction.

General rule:

• In a sale, the seller pays the tax by default.

Exceptions:

• In a donation (gift), the recipient (donee) is liable for the tax.
• In an inheritance, the heir or legatee must pay the tax — and they have six months from the date of death to do so (extendable by request).

It is legally possible to agree otherwise in a private sale contract — for example, having the buyer pay the Plusvalía — but if this is not explicitly stated, the seller remains responsible. Note that in donations and inheritances, no such contractual agreement can override the legal responsibility.

In October 2021, Spain’s Constitutional Court ruled the old Plusvalía Municipal system unconstitutional, stating that it could result in unfair taxation — especially in cases where no real gain was made.

To comply with the ruling, the Spanish government passed a new law (Royal Decree-Law 26/2021), which came into effect on January 1, 2022. This reform introduced two calculation methods, allowing the taxpayer to choose whichever results in a lower tax liability.

This is the default method used by most municipalities. It estimates the increase in land value based on standardized coefficients and the cadastral land value (valor catastral del suelo) — not the market price.

Formula:

Cadastral land value × Official coefficient × Municipal tax rate = Tax due

• Cadastral land value: Only the land portion is used — not the value of the building.
• Official coefficient: Determined by how long the property was held.
• Municipal tax rate: Set by each Ayuntamiento (max. 30%).

This alternative method, introduced in the 2022 reform, calculates the tax based on the actual capital gain made in the transaction — offering a more accurate and fairer result in many cases.

Formula:

(Sale price – Purchase price) × % of cadastral value attributable to land × Municipal tax rate = Tax due

Especially beneficial if:

• The land’s value has only increased slightly
• The market gain was minimal
• You sell at a real loss

To apply this method, you’ll need to document both sale and purchase prices, and obtain the land portion of the cadastral value from your IBI receipt or the Catastro.

Calculating Plusvalía Municipal may seem daunting, but it can be broken down into clear steps. Understanding both official and real gain methods helps you choose the one that minimizes your tax liability.

Scenario:

• Property held for 12 years
• Land cadastral value: €60,000
• Purchase price: €120,000
• Sale price: €180,000
• Land = 60% of total cadastral value
• Municipal tax rate = 27%

In this case, the objective method results in lower tax, especially in Málaga — even though the real gain was higher. However, if the gain had been smaller or the land value lower, the real gain method could have reduced the tax dramatically.

Declaring and paying the Plusvalía Municipal is a legal obligation after any property transfer involving urban land in Spain. Failing to comply can result in penalties or delays in updating the land registry.

The time you have to file depends on the type of transaction:

• Property Sale or Donation → Must be declared within 30 business days from the date of transfer.
• Inheritance → Must be declared within 6 months from the date of death.
  This period can usually be extended up to 12 months upon request.
  

You must declare and pay the Plusvalía Municipal to the local Ayuntamiento (town hall) where the property is located. This can usually be done:

• Online via the town hall’s tax portal (if available), or
• In person at the municipal tax office

To file the Plusvalía, gather the following documents:

• Deed of sale, donation, or inheritance (escritura notarial)
• Cadastral reference number (referencia catastral) – can be found on IBI receipt or via Catastro.es
• NIE and contact details of both parties involved
• Proof of acquisition date (purchase deed or previous inheritance title)

Optional but useful:

• Copy of previous IBI receipt (to verify cadastral value)
• Simulation printout if available from the local portal

• Public deed of sale, gift, or inheritance (notarial act)
• Previous title deed (to determine holding period)
• Copies of the NIE or passport of both parties
• Contact details: email, address, and phone number
• Cadastral reference (can be found on the IBI receipt or via the Catastro website)
• Bank account information (only required if requesting a refund)
  

While the Spanish Plusvalía Municipal tax is governed by national legislation, each municipality (Ayuntamiento) has the power to define its own:

• Tax rate (up to a legal maximum of 30%)
• Annual coefficients based on property holding period
• Reductions and exemptions, especially for heirs or family-related transfers

Understanding your local tax rules can make a significant difference in what you owe — or whether you’re eligible for a reduction.

Below is a side-by-side comparison of Plusvalía rules in Valencia, Málaga, and Barcelona, based on a 12-year ownership period:

• Some councils may also offer exemptions for low-income heirs, disabled beneficiaries, or if the property’s cadastral value is below a threshold.
• Reductions usually require official application and proof of relationship (e.g. birth or marriage certificates).
• Not all exemptions are automatic — missing the filing deadline could forfeit your rights.

Although the Plusvalía Municipal tax is widely applied, you may not have to pay it in several situations. Spain introduced new exemptions and safeguards in 2022, making it possible to avoid this tax when certain conditions are met.

Since the 2021 Constitutional Court ruling, Spanish law no longer allows town halls to charge Plusvalía if no real gain was made on the sale.

If you sell your property for less than you bought it, or if the land value did not increase, you’re exempt — but you must prove it.

To claim this exemption, you need:

• Deed of purchase (escritura de compraventa)
• Deed of sale
• Proof of transaction costs (agent commissions, notary fees, renovation invoices)
• A breakdown showing that the land portion of the value did not appreciate

Many municipalities offer generous reductions or exemptions on Plusvalía when the property is passed on to:

• Children or parents
• Spouses or civil partners
• Heirs of a main residence

Example:

• In Valencia, heirs in the direct line may receive up to 95% reduction
• In Málaga, a 40% exemption applies when inheriting the family home
• In Barcelona, standard cases often have no reduction

No Plusvalía is due when:

• A jointly owned home is transferred from one spouse to the other
• The transfer is part of an official divorce or separation agreement
• The property was not used for business or rental purposes

This exemption is available even if the property increased in value, as long as it was the couple’s shared home.

Navigating Plusvalía Municipal tax rules can be overwhelming — especially with the dual calculation methods, strict deadlines, and varying local rules. SpainEasy Support is here to simplify the process and help you save money.

We calculate your estimated Plusvalía before you sign, comparing:

• The official (objective) calculation
• The real gain method introduced in 2022

This lets you choose the most favorable option and avoid unexpected tax costs at the notary.

Our team:

• Prepares and submits your Plusvalía declaration
• Pays the tax to the local Ayuntamiento (town hall)
• Ensures no deadlines are missed, avoiding fines or delays in the property transfer

We work with all major cities in Spain — including Valencia, Málaga, Alicante, and Barcelona.

Selling at a loss or transferring within the family?

We:

• Help you gather documents to prove exemption eligibility
• File the real gain method when beneficial
• Appeal Plusvalía assessments if incorrectly applied

Transferring a property after death or as a gift?

SpainEasy Support:

• Assists with inheritance and donation paperwork
• Applies local reductions and exemptions where available
• Coordinates with notaries and heirs, in English, French, or Spanish

Looking to go deeper into specific topics? Here are some of our most in-depth guides that expand on the taxes and procedures mentioned in this article:

Taxes When Purchasing Real Estate in Spain
A detailed breakdown of all upfront taxes and fees, including ITP, VAT, AJD, notary and legal costs — with examples and regional comparisons.

Non-Resident Tax (IRNR) in Spain
Whether you rent your property or not, if you’re not a Spanish tax resident, you must file IRNR. This guide covers tax rates, deadlines, and how to file Modelo 210 from abroad.

IBI: Local Property Tax in Spain
Learn how this annual municipal tax is calculated, when it’s due, and what to do if you miss the deadline. Includes typical IBI ranges in major regions.

Capital Gains Tax When Selling Property in Spain
Selling a home? Understand the full tax implications — from national capital gains tax (IRPF/IRNR) to the local Plusvalía Municipal. Includes tax rates, exemptions, and refund processes.

Real Estate Taxes in Spain: What Every Foreign Buyer Should Know
Our complete overview of all real estate taxes in Spain — from purchase to resale. Ideal if you’re just getting started or want to make sure you’re compliant at every step.