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Tax

Municipal tax on the increase in urban land value (plusvalía)

The municipal ‘plusvalía’ tax applies to the increase in value of urban land when you sell, give away or inherit a property. Following the Constitutional Court's 2021 ruling and Royal Decree-law 26/2021, no tax is due if there is no increase, and you can be taxed on the actual gain if it is lower. We calculate both options, prepare the self-assessment or return and file it on time.

By Elena Fernández Ruiz, ICAB member no. 43871 · Updated on 14 October 2026

In brief

Who pays
In a sale, the seller; in inheritances and gifts, the person receiving the property. If the seller is a non-resident individual, the buyer pays as substitute taxpayer.
Filing deadline
Thirty working days for sales and gifts; six months, extendable to one year, for inheritances (art. 110.2 of the Local Finances Law).
Where it is handled
With the city council where the property is located; in Barcelona, by self-assessment with the Municipal Tax Institute (Institut Municipal d'Hisenda).
Fees
We quote them in the first consultation (€40), with the option to pay in instalments.

What it covers

  • It taxes the increase in value of urban land when ownership is transferred or rights of use are created or transferred, over a maximum of twenty years.
  • No tax is due if the land value on transfer does not exceed its value on acquisition, comparing title deeds or verified values, without expenses or taxes.
  • To prove this, you must declare the transfer and provide the acquisition and transfer deeds.
  • Objective method: cadastral value of the land multiplied by the coefficient set by the council for the years elapsed, within the legal maximums.
  • Actual method: if you show that the actual increase is lower than the result of the objective method, you are taxed on that actual increase.
  • It does not apply to contributions to the marital community or transfers between spouses or to children under annulment, separation or divorce judgments.
  • In Barcelona every transfer must be declared, with or without an increase, and inheriting the family home may qualify for a 95% reduction, subject to conditions.
  • An assessment can be challenged by an appeal for reconsideration within one month; in Barcelona, by an appeal to the Mayor within the same period.

How we help you

  1. We review the transaction

    We gather the acquisition and transfer deeds, the dates and the cadastral value, and check whether an exclusion or exemption applies.

  2. We calculate both options

    We compare the objective method with the actual increase and, if there is no gain, prepare the evidence that no tax is due.

  3. We file on time

    We file the self-assessment or return with the council (in Barcelona, with the Institut Municipal d'Hisenda), attaching the deeds and, where applicable, the reduction or extension request.

  4. Follow-up

    We deal with any value checks, request rectification and a refund if too much was paid, and challenge the assessment if it is wrong.

Frequently asked questions

I am selling at a loss. Do I have to pay plusvalía?

No, if the land value on sale does not exceed its value on purchase, according to the deeds or verified values and excluding expenses and taxes. Even so, you must declare the transfer on time and provide both deeds; the council may check the figures.

Who pays on an inheritance, and when?

The person inheriting the property pays, within six months of the death, extendable to one year. In Barcelona, the extension must be requested in writing within the first six months, and inheriting the family home may qualify for a 95% reduction for a spouse, descendants, ascendants and, in certain cases, other cohabitants or relatives, if they do not transfer it within three years.

What changed after the Constitutional Court's 2021 ruling?

Ruling STC 182/2021 struck down the old mandatory coefficient-based calculation. Royal Decree-law 26/2021, in force since 10 November 2021, introduced the no-increase exclusion and the actual-gain method. Assessments not appealed and self-assessments with no rectification requested before 26 October 2021 cannot be reopened on the basis of that ruling.

Legislation

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