The Plusvalía tax has been annulled by the Constitutional Court, if it has accrued as a consequence of the sale of a property for less than the purchase price.
Equally, this is applicable to the case of inheritances and donations, that are considered the same rules as if it had acquired property through purchase, i.e., it has to take into account the value of the property contained in the writing for the Heritage Award, and the value thereof at the time of sale.
If you are in this situation or know someone in this case, know that you can request a refund of the tax paid.
Until now, the vendor had to pay the plusvalia tax, even though the sale of the property resulted in a loss. The loss occurred because the sale value of the property was lower than the purchase price of it. The reason why the vendor irrespective of the selling price has had to pay this tax is that for tax calculations purposes the councils have considered the cadastral value of the property or dwelling tax (IBI), which is calculated over the value of the plot, instead of the market value of the property.
What are the requirements for claiming the plusvalia tax refund?
The vendor must have lost money in the transaction, meaning that the selling price was lower than the purchasing price.
It has not been more than four years since the transmission, otherwise, it will be prescribed.
What are the steps for claiming the plusvalia tax refund?
After the payment of the plusvalia tax, a letter requesting for rectification and refund of undue income must be filed to the city council that has collected the tax, stating the amount paid.
In the case of refusal, an appeal must be made for a replacement and then an economic-administrative complaint.
The deadline for response is two months.
At LT Consulting we have a team of experts in this area. Are you an affected? If you have paid the municipal plusvalia tax in spite of having lost money in the sale of your property, we can help you to get your money refunded.
We will study your case completely free of charge. If your case is eligible to start the legal process we offer our “no win, no fee” fee, with which you will only have to pay when we win your case.
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Phone: +34 965 792 015