| What is the plusvalia tax in Spain? | | | | Who pays the plusvalia tax in Spain? |
| The plusvalia is a local (municipal) tax charged by the | | | | In theory the vendor, though the issue is open to |
| town hall on properties when they are sold. It is | | | | negotiation. During the boom, when vendors had all |
| calculated on the rateable value of property and the | | | | the negotiating power, it was reasonably common |
| number of years that have passed since the | | | | for buyers to agree to pay it, especially in areas like |
| property was last changed hands. The objective is to | | | | Andalucia. Now that the boom has turned to bust, |
| tax the increase in the value of the land on which the | | | | any vendor lucky enough to find a buyer is going to |
| property stands, some of which is due to | | | | have to pay the plusvalia. |
| improvements to the area carried out by the local | | | | How do you pay the plusvalia tax in Spain? |
| government and the community at large. | | | | You have 30 days from the date of sale to pay the |
| The base for this tax is the valor catastral (an | | | | plusvalia to the town hall. |
| administrative value that is usually lower than the | | | | If you are non-resident, the buyer may insist on |
| market value, sometimes considerably so) of the | | | | withholding funds to pay the plusvalia on your behalf, |
| property. The amount due in tax will depend on how | | | | as the new owner would become liable for the |
| long the seller has owned the property: the longer | | | | plusvalia in the event of non-payment (i.e. if a non- |
| the period, the higher the amount of tax. | | | | resident does a runner without paying). |