Spain's tax on the increase in urban land value (IIVTNU), commonly called plusvalía municipal, explained without legal jargon: who it hits, how it's calculated, and why the 2021 reform changed everything.
Revision of 23 May 2026. Verified against RDL 26/2021 and the 2026 municipal tax ordinances.
Spain's plusvalía municipal, officially known as the Tax on the Increase in Value of Urban Land (IIVTNU), is a local tax levied when an urban plot of land changes hands, whether by sale, inheritance or donation. It only taxes the land (not the building) and only when its value has increased since the current owner acquired it.
Despite its name, it is not calculated on the owner's real gain but on the land's cadastral value and the years since acquisition. The 2021 reform (RDL 26/2021) introduced a second method (the real one) and the right not to pay when there's no actual increase.
Quick summary
If you sell, inherit or receive as a donation a flat or urban plot in Spain that has gone up in value since you got it, you must pay the plusvalía municipal to the town hall where it sits. You have 30 days for a sale or 6 months for an inheritance to self-assess. You can pick between the objective and real methods: the town hall applies whichever is lower.
The taxpayer depends on the type of operation. In a sale, the seller pays (unless otherwise agreed). In an inheritance or donation, the recipient pays. Either way, the deadline and amount depend on the operation and the municipality.
Sale of a flat or commercial premises
The seller pays within 30 business days of signing the deed. In practice, the buyer's gestoría or notary often handles it as part of closing.
Inheritance
Heirs pay within 6 months of death, extendable to 12 months on request in time. Self-assessed at the town hall where the property is located.
Donation
The donee (whoever receives the property) pays within 30 business days of signing.
RDL 26/2021 forces town halls to accept both. You can pick whichever costs you less.
Calculated by multiplying the land's cadastral value by a coefficient that depends on the years since purchase. The coefficient is updated yearly and each municipality sets its own tax rate (capped at 30%).
Tax = Land cadastral value × Coefficient × Municipal rate
Calculated on the actual gain between acquisition price and sale price, multiplied by the share of land in the total cadastral value, and then by the municipal rate.
Tax = (Real gain × % land in cadastral value) × Municipal rate
Which one applies?
The town hall applies the objective method by default, but the taxpayer can opt for the real method if it's lower. For transactions with little gain over many years, the real method is usually cheaper. Use our calculator to compare both before filing.
On 26 October 2021, the Spanish Constitutional Court declared the existing objective calculation method unconstitutional, because it could tax people who had not made a real gain. The government passed RDL 26/2021 to bring the tax back with two key changes.
First, the taxpayer can now choose between the objective and real methods, and the lower one applies. Second, if there's no value increase between acquisition and transfer, the operation is exempt and you pay nothing (but you still must declare it).
The plusvalía municipal is self-assessed at the town hall where the property is located, not where the taxpayer lives. Each municipality has its own form and deadlines may vary slightly, though statutory limits are common.
| Sale | 30 business days from the date of the deed. |
| Inheritance | 6 months from the death, extendable to 12 months if requested before the end of the fifth month. |
| Donation | 30 business days from the date of the deed. |
Plusvalía municipal calculator
Compare both methods in seconds for your specific case, with your municipality's tax rate.
Calculate now arrow_forwardPlusvalía when selling a flat
Step-by-step guide to self-assessing when you sell, with a worked numerical example.
Read the guide arrow_forwardNo. The plusvalía municipal taxes the land and is paid to the town hall. The IRPF capital gain taxes the seller's real gain and is paid to the State through the income tax return. They are two different taxes that can apply to the same sale.
By law the seller pays in a sale. The parties can agree otherwise, but that agreement only binds them: if the buyer agrees to pay and doesn't, the town hall can still claim from the seller.
No. Since RDL 26/2021, if you can prove there was no value increase between buying and selling, the operation is exempt. You still have to declare it with the documents proving both prices.
The taxpayer. The town hall applies the objective method by default, but the taxpayer can opt for the real method when filing. Best practice: calculate both before submitting.
30% by default, under Spain's local-finance law. Each municipality sets its own rate, usually between 20% and 30%. Madrid applies 29%, Barcelona 30%, Valencia 29%.
The town hall applies 5%, 10%, 15% or 20% surcharges depending on the delay, plus default interest if it goes beyond 12 months. File on time even if you have not yet collected the sale price.
Only if the self-assessment was not final when the Constitutional Court ruling came out (October 2021). Final ones (more than 4 years old, no pending appeal) cannot be appealed. Consult a tax lawyer for your specific case.
Yes, except for municipal allowances. Many town halls grant 50% to 95% allowances on transfers of the primary residence to spouse, descendants or ascendants. Check your municipality's tax ordinance.
imotrack stores the purchase price, associated costs and cadastral value of each property. When the time comes to sell or inherit, the plusvalía calculation is a single click.
Try the calculatorFree. No signup. Compares both methods in seconds.
