First overturned, then quickly amended: the capital gains tax in Spain becomes due on the sale of properties. Since November, the Plusvalía has included some new regulations.
The judges at the Spanish Constitutional Court in Madrid were "not amused". At the end of October, they declared the previous regulation for calculating the plusvalía inadmissible. The tax, which is payable on the sale of houses and apartments, could no longer be applied in its previous form. However, because the state profits from the tax, it was quickly amended. The capital gains tax is therefore still there - but in a new form since November 9.
Änänderungen bei der Berechnung
The most important change: anyone who sells a property that has not increased in value over time, but has lost value, does not pay a plusvalía. There have also been significant changes to the calculation. In future, taxpayers will have two options for determining the capital gains tax
.The first way is the previous calculation method based on the cadastral value - i.e. the land value - of the property. This value is multiplied by a so-called coefficient, and the result then forms the basis of the tax burden. Which coefficient is applied is determined by the respective municipality. However, it does not have a completely free hand.
Taking advantage of speculators
According to the central government, the multiplier of the land value is between 0.08 and 0.45 and depends on the time the property has been owned by the taxpayer.
This means that all properties will be taxed under the new law and there are no longer any time exemptions. The aim is to deprive real estate speculators of the joy of tax-free buy-and-sell roulette. Incidentally, those who hold their property for between ten and 13 years and then sell it will get away with the cheapest capital gains tax of 0.08.
.Real increase in value
The second way to determine the amount of the capital gains tax is based on the real increase in value - if this exists. The increase in value of the property is determined from the purchase and sale price. The corresponding amount is taxed. In the case of inheritances or gifts, the tax authorities use the current reference value of the house or apartment on the market as the basis for calculation.
Check the tax calculation and recalculate
The good thing is: As a taxpayer, I can decide for myself which calculation basis I want to use when selling my property. To give you some guidance, the Spanish tax authorities have published various examples and calculations.
In one case, the authorities assume that a house was bought for 310,000 euros in 2017 and is to be sold for 350,000 euros in 2021. The increase in value is 40,000 euros. The plusvalía is 60 percent and therefore corresponds to a levy of 24,000 euros.
However, it can also be cheaper - provided the land registry value plays along. This can be looked up in the so-called borrador, the template for the annual tax declaration. Assume that the cadastral value is 100,000 euros, of which 60,000 euros is for the land and 40,000 euros for the house. The maximum coefficient in the example is 0.17. This multiplied by the cadastral value of the land shows a tax burden of only 10,200 euros. It is therefore worth doing the math.
Because the coefficient is not always the better alternative. This is shown by the second example from the Spanish tax authorities. The property was bought for 250,000 euros in 2014 and sold for 260,000 euros in 2021. The maximum coefficient is 0.12, resulting in a tax burden of 2,400 euros. With a cadastral value of 20,000 euros for the land and 80,000 euros for the house, the plusvalía based on the real increase in value of 10,000 euros would only be 2,000 euros.
Marc Fischer
