Sale & Capital Gains Taxes
*What arises on resale — and why the famous "Plusvalía" trick and the Constitutional Court ruling STC 182/2021 mean real money.*
Plusvalía municipal (IIVTNU) — municipal land value gain tax#
Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana. A municipal tax on the increase in value of the (urban) land, due among other occasions on a sale (borne by the seller) as well as on inheritance/gift.
⚖️ STC 182/2021 — calculation method unconstitutional ✅#
STC 182/2021 of 26.10.2021 (Tribunal Constitucional; BOE-A-2021-19511) ✅ declared the objective calculation method (Art. 107 TRLHL) void → legal vacuum.
Background: STC 59/2017 (BOE-A-2017-6855) and STC 26/2017 ✅ — no tax without a real gain in value.
New rules: Real Decreto-ley 26/2021 ✅#
RDL 26/2021 of 8.11.2021 ✅ closed the vacuum: two optional methods — (a) objective (new, annually updated coefficients) or (b) actual gain in value (sale price − purchase price). No gain in value ⇒ no tax.
Reclaiming#
- STC 182/2021 (FJ 6):
liquidaciones/autoliquidacionesnot challenged as of the cut-off date
26.10.2021 are deemed final.
- STS 339/2024 of 28.02.2024 🟡: on a sale without a gain in value, the Plusvalía paid can
even on a final assessment be reclaimed via the revisión de oficio (Art. 217 LGT).
Takeaway: on loss-making/zero-gain sales, have it checked whether Plusvalía is owed or can be reclaimed (mind the four-year limit on self-assessments).
Ganancia patrimonial (capital gain) — IRNR#
Gain = sale price − (purchase price + ancillary purchase costs + value-enhancing investments). Tax rate: 19 % for all non-residents (EU and non-EU alike). Declaration via Modelo 210 within 4 months of the sale.
3 % withholding (retención) — Modelo 211 ✅#
If a non-resident sells, the buyer withholds 3 % of the purchase price and remits it via Modelo 211 within 1 month of the deed to the AEAT — as an advance payment against the seller's IRNR liability. If the actual tax is lower, the difference is refunded.
The buyer's duty — in case of default the buyer is liable. In practice the amount is deducted from the purchase price. Exception: if the seller presents a Spanish tax-residence certificate from the AEAT, the withholding does not apply.
In depth: the two Plusvalía calculation methods#
Since RDL 26/2021, the taxpayer chooses the more favourable method:
- Objective:
valor catastralof the land × statutory coefficient (by years held) ×
municipal rate. *Example:* land value 55.000 € × 0,21 (9 years) = 11.550 € × 29 % = 3.349,50 €.
- Actual: (sale price − purchase price) × land share of the
valor catastral× rate.
Palma specifics 🟡#
- Rate in Palma: 30 % (the statutory maximum; a reduction 25 %→18 % is under political discussion,
🟡 not yet in force).
- Inheritance bonificación
vivienda habitual(descendants/spouse, 30 months of residence),
graduated by land value: ≤ 100.000 € → 95 %, up to 125.000 € → 75 %, up to 150.000 € → 50 %, up to 200.000 € → 25 %. 🔴 Other municipalities have their own Ordenanzas — check separately.
❓ FAQ#
Do I have to pay the Plusvalía on a sale in Mallorca if I sell at a loss? No — since STC 182/2021 / RDL 26/2021, no Plusvalía is due where there is no real gain in value; amounts wrongly paid may be reclaimable.
What is the 3 % withholding on a sale by a foreigner? The buyer withholds 3 % of the purchase price (Modelo 211) as an advance payment against the IRNR of the non-resident seller.
Sources (selection)#
- STC 182/2021 (BOE-A-2021-19511), STC 59/2017 (BOE-A-2017-6855), STS 339/2024 → Ch. 23
- RDL 26/2021 · AEAT Modelo 210/211