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What is the Plusvalía / capital gains tax?

Posted by Robert Marekovic on 6. May 2024

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.


  • 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:

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