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Plusvalía municipal in Spain: the tax foreign sellers pay

Q: Is plusvalía deductible from my national capital gains tax (IRNR)?

Yes. Plusvalía paid at sale counts as a 'gasto de transmisión' (cost of sale) and reduces the taxable base for IRNR (Modelo 210) by the amount paid. Coordinate both filings via the same gestor to avoid mistakes.

Q: What if the buyer doesn't withhold for plusvalía at signing?

You are still the legal taxpayer. If the buyer fails to withhold and you leave Spain, the city council can still pursue you for the debt (via your Spanish bank account or international tax cooperation under EU directives). Always ensure plusvalía is paid before leaving Spain after the sale.

Q: Does plusvalía apply to inheritance, not just sale?

Yes — when an heir inherits a Spanish property, plusvalía is triggered. The heir (you) pays. Some municipalities give partial reductions for first-degree inheritances (spouse, children). Deadline: 6 months from death, extendable to 12 with formal request.

Q: How long does the refund process take?

If you sold at a loss and filed the declaration with €0 due, you do not need to file for a 'refund' — you simply do not pay. If you ALREADY paid and want to claim a refund (sold at loss), the procedure (rectificación de autoliquidación) typically takes 6-12 months and you need documentary proof of both purchase and sale prices, often with notarial confirmation.

Q: Are there big differences between municipalities?

Yes — within the national rate cap of 30%, each city sets its own rate. Madrid: 29%. Barcelona: 30%. Valencia: 30%. Marbella: 30%. Smaller towns may apply lower rates (15-25%). The cadastral land value also varies widely between municipalities, which affects the base. Always check the specific ordinance of the property's municipality.

When you sell a Spanish property, you face two separate capital gains taxes: the national one (IRNR/IRPF) and the municipal one — plusvalía. The latter, formally called IIVTNU (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana), is paid to the city council and varies wildly by municipality. A 2021 Constitutional Court ruling and the subsequent Ley 8/2021 reform changed how it is calculated. This guide explains the current rules, who actually pays, the two calculation methods, and how to obtain a refund if you sold at a loss.

By Fernando Hierro|Updated Jul 2026

Guide8 min read

In this guide

01What is plusvalía municipal 02Who pays and when 03Two calculation methods (since…04Worked example 05Exemptions and refund claims ?FAQs

Excellenton Trustpilot|Independent comparator|Free assessment|Reply within 24h|Bank of Spain reg. nº E569

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Plusvalía municipal in Spain: the tax foreign sellers pay

Plusvalía taxes the increase in urban LAND value (not the building) at sale
Paid by the SELLER (you, as non-resident owner) within 30 days of notary signing
Two calculation methods since the 2021 reform: objective (cadastral-based) or real (sale price minus purchase price) — taxpayer chooses cheapest
If you sold at a LOSS, plusvalía = €0 (no payment) — but you must declare the loss
Rates: 4-30% of the calculated taxable base, varies by municipality and ownership years

Source: hipotecas.me (July 2026). Registered mortgage intermediary with the Bank of Spain (E569).

The essentials

8 min full read

1Plusvalía taxes the increase in urban LAND value (not the building) at sale
2Paid by the SELLER (you, as non-resident owner) within 30 days of notary signing
3Two calculation methods since the 2021 reform: objective (cadastral-based) or real (sale price minus purchase price) — taxpayer chooses cheapest
4If you sold at a LOSS, plusvalía = €0 (no payment) — but you must declare the loss
5Rates: 4-30% of the calculated taxable base, varies by municipality and ownership years

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011 of 5

What is plusvalía municipal

Plusvalía municipal (IIVTNU) is a tax on the increase in value of urban land during the period you owned the property. It applies only to urban (suelo urbano) properties — rural land is exempt. It is local: each municipality (ayuntamiento) sets its own rates within national caps.

Crucially, plusvalía taxes the LAND value, not the construction. So even if your property is mostly built area, the tax base focuses on the proportional land value. The cadastral value of the property splits into 'land value' (valor del suelo) and 'construction value' (valor de construcción) — plusvalía uses only the first.

This tax is independent of and additional to the national capital gains tax (IRNR for non-residents). You pay both: plusvalía to the city council, IRNR/IRPF to the State (AEAT). Both have separate forms and deadlines.

022 of 5

Who pays and when

The plusvalía is paid by the SELLER. Even if the seller is a non-resident, the seller is the legal taxpayer. The deadline is 30 working days from the notary signing date.

Some city councils have a system of 'autoliquidación' (you file and pay yourself); others have 'liquidación' (you notify the council, they calculate and send you the bill within months). Madrid, Barcelona and most large cities use autoliquidación — your gestor or lawyer files it.

For non-resident sellers, the practical mechanic is: at the notary signing, the buyer typically withholds a portion of the sale price equivalent to the estimated plusvalía to ensure payment (especially if the seller is leaving Spain after sale). This withholding is paid to the council on the seller's behalf.

033 of 5

Two calculation methods (since 2021 reform)

The Constitutional Court declared the previous mandatory objective method unconstitutional (Sentencia 182/2021), and Ley 8/2021 created two alternative methods. The taxpayer chooses whichever produces a LOWER tax bill:

Method 1 — Objective (cadastral): apply official coefficients to the cadastral land value depending on years of ownership. The coefficient increases with holding period up to 20 years.

Method 2 — Real (actual gain): difference between sale price and purchase price, multiplied by the proportion of land value over total cadastral value.

If you sold at a LOSS (sale price < purchase price), plusvalía is €0 under method 2. You must still file the form but with €0 due. Many sellers miss this and overpay.

Years of ownership	Maximum coefficient (objective method)
Less than 1 year	0.15
1-5 years	0.15-0.17
6-10 years	0.10-0.20
11-15 years	0.08-0.18
16-20 years	0.08-0.45
More than 20 years	0.45 (cap)

Years of ownership

Less than 1 year