In short
Plusvalía (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana) is charged by the local municipality every time a property is sold, inherited, or donated. It is paid by the seller (or heir). The amount depends on the cadastral land value and how many years you have owned the property. A Constitutional Court ruling in 2021 changed how it is calculated — you now have two methods to choose from.
What is Plusvalía?
Plusvalía is a tax on the increase in value of urban land (not the building itself). It does not matter whether you actually made a profit — the tax is calculated on a notional land value increase based on cadastral values and time.
It is a municipal tax, so each ayuntamiento sets its own rates within national limits. In Mallorca, different municipalities can have notably different charges.
Who pays Plusvalía?
- Sales: The seller pays (unless the contract states otherwise — this is sometimes negotiated)
- Inheritance: The heir pays
- Donation (gift): The recipient pays
As a non-resident selling your property, you are the one who owes Plusvalía.
How is it calculated? (Two methods since 2021)
Following a landmark Constitutional Court ruling in October 2021, Spain changed how Plusvalía is calculated. You can now use whichever method gives a lower result:
Method 1: Objective calculation Based on the cadastral land value × a government coefficient linked to the number of years owned.
Method 2: Real value increase If the actual increase in land value (sale price minus acquisition price, land portion only) is lower than the objective calculation, you can use the real increase instead.
You can choose the lower method
Your gestoría will calculate both methods and submit the one that costs you less. This is one of the real advantages of using a professional.
No profit = no Plusvalía?
Yes — since 2021, if you sell at a loss (your sale price is lower than your purchase price), you owe zero Plusvalía. You must prove the loss by providing both escrituras to the ayuntamiento.
When does Plusvalía need to be paid?
The deadline for paying Plusvalía is 30 working days after the sale completes. Your gestoría or the notary's team typically handle the filing with the ayuntamiento.
Rough amounts: what to expect
Plusvalía amounts vary widely. For a Mallorca property owned for 10 years with a cadastral land value of €80,000, the Plusvalía might be approximately €2,000–€6,000. Get an estimate from your gestoría before signing any sale agreement.
Plusvalía vs Capital Gains Tax
Plusvalía and capital gains tax (Modelo 210 or Modelo 100 for residents) are separate taxes. You can owe both. Plusvalía is local and based on cadastral values; capital gains tax is national and based on actual sale proceeds.
Professional help
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Spanish tax filings and bureaucracy can be complex. A local gestoría can handle Modelo 210, NIE applications, and other filings on your behalf.
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