The tax on the Increase in the Value of Urban Land (IIVTNU), also known as plusvalía, taxes the increase in value of real estate between the time of purchase and the time of sale. It is also paid in the case of an inheritance or donation.
The regulation of capital gains has been criticized, during a period of crisis, which has caused a loss of value in real estate that is not reflected in the quantification of the tax obligation, which goes against the constitutional principle of economic capacity.
The rules for determining the tax base of capital gains quantify the increase in the value of the land at 3% per year of the cadastral value of the land, regardless of whether it has produced an increase or a loss in that value.
We must bear in mind, in this area, the recent Judgment of the Constitutional Court of May 11, 2017, following the path of the STC of February 16, 2017, which declared certain arts unconstitutional and void. 107.1, 107.2 a) and 110.4, “but only to the extent that situations of non-existence of increase in value are subject to taxation.” Therefore, it is up to the interpretation of the judge to determine on a case-by-case basis the non-existence of said increase.
Taxpayers who have had to pay the capital gains tax unduly must make, before the corresponding City Council, a written request for rectification and return of improper income. The claim will reflect the amount paid, thus initiating the administrative route. The local entity in question must set a deadline to respond to the affected party. If not satisfied with the response, the affected person You must go to court.
At ACC LEGAL ABOGADOS we have extensive experience defending the rights of taxpayers. Request a no-obligation appointment to find out more at 868 97 56 50.
