Plusvalía tax in Spain: who pays and how it is calculated

Plusvalía is the local tax a Spanish town hall charges when a property changes hands. Most guides say the seller pays it. For a non-resident seller that is only half the story: the law makes the buyer liable for the whole amount, and the buyer then has to recover it from the seller. That single rule explains why so many purchase contracts and completion statements deal with plusvalía explicitly.

What plusvalía is

The official name is the tax on the increase in value of urban land (IIVTNU). It is charged by the town hall, not by the tax agency, and it only looks at the land under the property, not at the building. It applies on a sale, a gift and an inheritance. It is a separate tax from the capital gains tax on the sale itself; see selling property in Spain: the tax.

Who pays

• On a sale, the seller is the taxpayer.
• On a gift or inheritance, the person receiving the property pays.
• When the seller is a non-resident individual, the buyer is the substitute taxpayer. The town hall can claim the full amount from the buyer, who can then claim it back from the seller.

That last point is not the 3% the buyer withholds from the price for the tax agency. That 3% is an advance on the seller's capital gains tax. Plusvalía comes on top and needs its own arrangement in the contract, usually a retention from the price or payment at the notary.

How it is calculated

Since November 2021 there are two methods, and the taxpayer pays the lower result.

The objective method. The cadastral value of the land is multiplied by a coefficient that depends on how many years the property was owned, up to a maximum of 20 years. The town hall can reduce the land value by up to 15% and sets its own rate, at most 30%. The maximum coefficients currently in force are:

• under 1 year and 1 year: 0.15
• 2 and 3 years: 0.14
• 4 years: 0.16; 5 years: 0.18; 6 years: 0.19; 7 years: 0.20; 8 years: 0.19
• 9 years: 0.15; 10 years: 0.12; 11 years: 0.10
• 12 to 15 years: 0.09; 16 years: 0.10; 17 years: 0.13
• 18 years: 0.17; 19 years: 0.23; 20 years or more: 0.40

These are ceilings. Updates for 2025 and 2026 were both voted down in the Spanish parliament, so the 2024 table still applies, and each town's own tax bylaw can set lower figures.

The real-gain method. On request, the tax is calculated on the actual gain on the land, if that is lower. The gain is the difference between sale and purchase value, split according to the cadastral ratio of land to total value.

No gain, no tax, but only if you prove it

A sale at a loss is not taxed. That is not automatic: the taxpayer has to declare it and file both title deeds, the purchase and the sale. The comparison uses the higher of the deed value and the value checked by the administration, and purchase costs and taxes paid do not count. A property bought for €300,000 with €30,000 of costs and sold for €310,000 has made a gain for plusvalía purposes, even if the owner has lost money.

Deadlines

• Sale or gift: 30 working days.
• Inheritance: six months from the death, which can be extended to one year on request.

The notary sends the town hall a quarterly list of deeds, and the buyer must also notify the town hall within the same deadlines. The Land Registry accepts that notice to register the purchase, so a registered property does not prove the plusvalía was paid. Town halls can still claim unpaid plusvalía later, within the four-year limitation period.

Inheritance: ask about the discount

Towns may give up to 95% off plusvalía when a property is inherited by children, a spouse or parents. It is optional and conditions differ per town, often including keeping the property for a number of years. For inherited property see also Spanish inheritance tax.

Plusvalía paid before 2021

The Constitutional Court struck down the old calculation in October 2021. Assessments that were not challenged, and self-assessments whose correction had not been requested, by 26 October 2021 are treated as settled. Claims on older sales are therefore rarely possible.

Questions we get

Can the contract make the buyer pay?
Yes, the parties can agree that. Towards the town hall, the legal taxpayer stays the same.

How much is it on a typical holiday apartment?
That depends on the land share of the cadastral value, the years of ownership and the town's rate. On an apartment the land share is often small. The town hall's own calculator or bylaw gives the real figure.

Do I need a NIE to pay it?
Yes, as seller or buyer. See what is a NIE number.

Why Buenaley?

Buenaley is a Spanish law firm working with international property owners. On a sale or purchase there are two things we take off your hands, in this order.

The first is the NIE, which both parties need to sign at the notary. We handle it through our NIE service.

The second is the transaction itself: we check the plusvalía, agree the retention in the contract and file the return on time.

• NIE for buyer or seller, from abroad
• Plusvalía calculated with both methods before you sign
• Retention and payment agreed in the contract
• Loss declaration filed with both deeds
• Discount applications on inherited property

Selling or buying in Spain? Send the town and the purchase and sale values, and you will hear what plusvalía to expect. Or start with the NIE application.