The sentence of constitutional Court, that declared null the method being used by the town councils to calculate the tax base of the Municipal Capital Gain, forced the Government of Spain to look for alternatives to make the collection of this tax viable.
This lien, also known as Tax on the Increase in the Value of Urban Land (IIVTNU), is paid by taxpayers when they sell, donate or inherit a home or any type of property. A tax with whichAccording to data from the Ministry of Finance, the municipalities entered more than 2,500 million euros in 2019.
The reason why the tax was annulled was due to the fact that the scales set by the regulation did not take into account “the real evolution of the value of the land on which each house is built “. This is how the new municipal capital gains tax will remain.
Reduction of the cadastral value of 15%
With the new regulations, as reported ‘The country‘, Tax authorities provide municipalities with the option of reducing the cadastral value by up to 15%. An option that will depend exclusively on the Market situation real estate, provided that it also adjusts to the situation of each municipality.
In addition, the aforementioned media reveals two options to manage the payment. The first, the quota will be calculated based on the cadastral value through a series of coefficients set by the Ministry of Finance, while the second will be calculated through the difference in the purchase and sale values of the property.
These are the options and conditions that this tax would take, which will be approved by Decree Law in the Council of Ministers. These were the conditions to know how much taxpayers who inherit or sell an apartment must pay, and that will change with the new regulations after the appeal of the TC.
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