Plusvalia - Increase in the value of properties

Can I reclaim the amount I paid for Plusvalia? We inform you that on October 26, the Constitutional Court published a judgment in which it declared the unconstitutionality of the provisions of the law regulating the tax base for the tax on the increase in the value of urban real estate and established a method that results in the value of the property always increasing during the tax period. A payment obligation was imposed on the taxpayer without testing his economic capacity. This was not a problem when the trend in urban property values was upwards, but from 2008 prices began to fall, a decline that lasted for several years and created an unfair situation. This is not the first time that this court has declared that this tax violates constitutional principles. We remind you that it previously declared the way in which the provision determines the calculation of the taxable base unconstitutional in judgments of May 11, 2017 and October 31, 2019, but only in cases where there was no actual capital gain or the amount to be paid exceeded it. As a result of this ruling, the Spanish government had to urgently issue a royal decree to regulate the municipal capital gains tax Plusvalia from November 10 of this year, so that all real estate transactions made between October 26 and November 10 would not have to pay this tax, as there was a loophole in the law. From now on, the taxpayer can choose between two formulas for calculating the tax base: The first takes into account the cadastral value, to which new coefficients are applied, and the second determines the plusvalia by calculating the difference between the acquisition value and the transfer value, applying a percentage to this result. Can I get back the amount paid? In most cases, it will not be possible to request a refund because if we have not appealed or requested a correction before the date of the judgment, even if we are still within the deadline for doing so, we will not be able to verify the payment obligation based on this declaration of unconstitutionality. If we have lodged an objection to a statement or requested a correction of the self-assessment before October 26, 2021 and no final decision has yet been made, we can request a review of the situation on the basis of the new decision and therefore do not have to pay or can request a refund of the amounts unduly paid. The Constitutional Court acted correctly by putting an end to an unfair method of calculating the Plusvalia tax and forcing the legislator to find a more appropriate method without delay, which should have been done a long time ago. At the same time, however, it wanted to avoid massive refund claims that could cause economic damage to municipalities and has thus violated the rights of taxpayers, who in most cases cannot make a claim. We are a multilingual law firm specializing in tax, civil, commercial and tourism law, and are able to offer comprehensive services for foreigners and nationals, residents and non-residents. Furthermore, we have expert personnel specialized in dealing with the peculiarities of family businesses. Our lawyers and tax advisors offer legal and tax services to assist you in the purchase of real estate, the preparation of your company accounts, company incorporation, the drafting of wills, tax calculations in Spain, inheritance and gift matters, real estate transfers, etc. Please contact us at any time and we will discuss your personal concerns at an appointment in our office: Omnia Consulting C/ Sant Miquel, 46 esc. dcha, 2º piso, despacho 10-A y 10-B E-07002 Palma de Mallorca Tel. +34 971 288 442 - Fax +34 971 282 924 info@omnia-consulting.com www.omnia-consulting.com