Plusvalia tax in Spain, the “forgotten” tax!!
Most of you may have heard about “Plusvalía”. You may have heard it mentioned but do you really know what it is and the implications it has for you as a property owner?
Plusvalia is a Local Tax, which you have to pay every time there is a transfer of title deeds, for example when a property is sold or inherited. It is set by Spanish Town Halls and is calculated taking into account the rateable value of the land of an individual property and the period of ownership.
An important change has recently been made relating to the payment of Plusvalia” by the Law 16/2012 of 27th December. This Law, which has recently been approved, modifies article 254 of the Spanish Law on the inscription of Titles to Immoveable Property.
The Spanish Land Registrar will not register the new title deed of a property that has been sold or inherited – unless it can be proved that the Plusvalia tax has been paid or the relevant SpanishTown Hall has confirmed that the new title deed has been signed (the government wants to make sure that all Plusvalia is paid). This law came into force as from the 1st January 2013!
Obviously, we will see how this is implemented but for those of you who are going to sell or accept an inheritance now, I recommend that you visit your local Town Hall and fill in and submit an “Instancia” (remember to have your copy stamped!).
Carolina Just Miro