Plusvalía municipal when selling a flat in Spain: complete 2026 guide
You sold or are about to sell a flat in Spain. This guide walks you step by step through calculating and filing the plusvalía municipal correctly, with a concrete example comparing both methods.
Updated May 2026. Current coefficients and municipal tax rates checked against Madrid, Barcelona and Valencia.
When you sell a flat in Spain, you pay two different taxes on the same operation: the plusvalía municipal (to the town hall, on the land's value increase) and the IRPF capital gain (to the State, on the actual gain after expenses). This guide focuses on the first.
The seller's plusvalía municipal is not calculated the way you'd expect. It is not a percentage of the gain: it's based on the cadastral land value and the years since purchase. Since RDL 26/2021, you have two methods available and may apply the more favourable one.
The 5 steps to file correctly
The process is the same in any municipality where the flat is located.
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1
Gather the cadastral data
You need the flat's total cadastral value and the share that the land represents in that total. Both appear on the annual IBI receipt or on the Catastro's online site.
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2
Locate the acquisition and sale prices
The acquisition price is the one in the deed when you bought the flat. The sale price is the one in the current deed. Keep both deeds: you'll need them to opt for the real method.
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3
Compute the objective method
Multiply the cadastral land value by the coefficient for your years of ownership (published yearly by the municipality or the State) and by the municipal tax rate.
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4
Compute the real method
Subtract the acquisition price from the sale price, apply the share that land represents in the total cadastral value, and multiply by the municipal tax rate.
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5
File on time at the town hall
Submit the self-assessment within 30 business days of the deed, opt for the lower method, and keep the documentation for 4 years in case the administration reviews.
Numeric example: flat sold in Madrid
Here is a typical case that shows why the gap between the two methods can be very meaningful.
Case data
Bought in 2010 for €200,000. Sold in 2026 for €280,000. Gross gain: €80,000 over 16 years. Current total cadastral value: €100,000. Cadastral land value: €60,000 (60%). RDL coefficient for 16 years: 0.14. Madrid municipal rate: 29%.
Objective method
60,000 × 0.14 = €8,400 base. 8,400 × 29% = €2,436.
Real method
Real gain: €80,000. Land pro rata: 80,000 × 60% = €48,000. 48,000 × 29% = €13,920.
The objective method costs €11,484 less in this case. The seller should opt for it when filing.
What if I sell at a loss?
Since RDL 26/2021, if you can prove the sale price is lower than or equal to the acquisition price (updated for documented improvements), the operation is exempt from plusvalía municipal. You pay nothing but must still declare it to the town hall.
To prove the loss, present both deeds (purchase and sale) or the equivalent documents. If the administration accepts the proof, it issues a non-liability ruling and keeps the file.
The 4 most common mistakes
Forgetting to compute the real method
If you only file the objective method, the town hall will not refund the difference even if the real method would have been cheaper. Always calculate both before filing.
Mixing up plusvalía municipal and IRPF capital gain
Two different taxes that coexist. Paying one does not waive the other. Calculate both before closing to know the real fiscal cost of the sale.
Waiting to receive the price before filing
The deadline is 30 business days from the deed regardless of when you collect. Filing late triggers 5 to 20% surcharges.
Not keeping the cadastral documentation
Without the up-to-date land registry note and the IBI receipt with the land/building split, you cannot opt for the real method. Get them before signing the deed.
Frequently asked questions about selling and the plusvalía
How much plusvalía do I pay when I sell a flat? expand_more
Depends on the cadastral land value, years since purchase, municipal rate, and optionally the actual gain. A flat in Madrid bought 10 years ago can yield €1,500 to €5,000 of plusvalía depending on the case. Use our calculator for a precise estimate.
When do I pay, before or after collecting? expand_more
Often before. The legal deadline is 30 business days from the deed. If you agree to deferred payment with the buyer, assume you'll have to front the plusvalía from your own funds.
Who computes it, the notary or me? expand_more
It is the seller's responsibility. The notary can help but doesn't self-assess for you. Common practice: hand it to a gestoría who files at the town hall.
Can I defer the payment? expand_more
Yes. Most town halls allow splitting or deferring the payment if the debt exceeds certain thresholds (varies: Madrid from €3,000, Barcelona from €1,500). Request it on time, usually requires a guarantee.
Does the plusvalía count as a deductible expense in IRPF? expand_more
Yes. The plusvalía municipal paid on a sale is deducted from the transfer price when computing the IRPF capital gain. Keep the proof of payment.
Are there allowances for senior sellers? expand_more
Not by general law. But many municipalities grant 50% to 95% allowances on inheritances and donations, and a few also for the primary-residence sale under specific conditions. Check your municipality's tax ordinance.
What if I sell a flat I inherited recently? expand_more
If you inherited, the acquisition price for plusvalía purposes is the value declared for inheritance, not the price the deceased originally paid. This usually cuts the taxable base significantly if you sell soon after inheriting.
What if I make a mistake when filing? expand_more
You can file a supplementary self-assessment if you underpaid, without penalty if done voluntarily before the administration reviews. If you overpaid, request a refund of undue payments within 4 years.
Calculating a sale shouldn't take more than two minutes
imotrack stores each property's purchase price, expenses and cadastral value. When you sell, the plusvalía is calculated in one click with both methods side by side.
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