What is the Plusvalía / capital gains tax?
When selling real estate in Mallorca, the so-called Plusvalía (capital gains tax) applies. This tax is levied by the municipalities and taxes the (notional) increase in value of the property – not the buildings – since the last purchase.
What has changed since 2021?
- No tax on value-neutral sales: There is now no Plusvalía on property sales where no profit is made.
- Two calculation methods: There are now two different methods for calculating the Plusvalía:
- Method 1: The traditional method is based on the cadastral value of the property, the duration of ownership and a community-specific factor.
- Method 2: The new method calculates the increase in value on the basis of the actual purchase price and the current selling price.
- Inheritances and gifts: In the case of inheritances and gifts where no purchase price is available, the current market reference value is used to calculate the Plusvalía.
Important:
- The Plusvalía tax liability must be self-declared and paid to the tax office within 30 days of the sale.
- If the seller is a non-resident in Spain, the payment is made by the buyer of the property and the amount is deducted from the purchase price.
- It is advisable to seek advice from a tax expert before selling a property in order to determine the exact amount of the Plusvalía and ensure the correct calculation.
Further information:
- View the cadastral value of the property online: https://www1.sedecatastro.gob.es/Accesos/SECAccvr.aspx