The Plusvalia tax is a local tax due for the increase in the catastral value of the urban land from the date of the owner acquired it to the date of the property is transferred.
This is a direct tax based on the value of the house. It is known as LOCAL RATES, COUNCIL TAX or IBI (and SUMA BILL in Alicante Area). All names mean the same.
The catastral value of the urban land is stated in the council tax bill.
In order to calculate the Plusvalia tax the Town Hall takes into account the increase in the value of the land, the period of time that you were owner, the percentage applicable to the increase and the tax rate approved by each Town hall.
The Plusvalia tax is due in the case of sale, donation or inheritance of the property.
Plusvalia in the sale; in that case the Plusvalia will be paid by the seller.
Please, note that according to the Tax law if the seller is Non Fiscal Resident in the country, then the Town Hall would require the payment to the buyer as substitute taxpayer.
The deadline to submit the Plusvalia declaration is 30 working days from the completion date.
Now, due to Sentences of the Supreme Court and the Constitutional Court of Spain, you are entitled to recover the referred amount if you can prove that you had not real profit with the sale of the property; it is if the sale price is lower than the price of the purchase.
Plusvalia in the donation or inheritance procedures; The Plusvalia will be paid by the beneficiary; it is, the person who receives the property is liable to pay this tax.
In the case of donation, the Plusvalia declaration must be submitted on 30 working days from the signature of the donation title deeds.
In the case of inheritance, the Plusvalia declaration must be submitted on 6 months from the date of the death.