Plusvalia Municipal in Spain: The Land Value Tax on Property Sales, Two Methods and How to Calculate It (2026)

The plusvalia municipal, formally the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), is a local tax that every Spanish town hall levies when urban land changes hands. It taxes the theoretical increase in the value of the land, not the building, between the date you acquired the property and the date you transfer it. Since a landmark Constitutional Court ruling in October 2021 and the subsequent reform that took effect on 10 November 2021, taxpayers can now choose between two calculation methods, picking whichever produces the lower bill.

What is the plusvalia municipal and what does it tax?

The plusvalia municipal is a municipal tax on the increase in value of urban land that occurs during your period of ownership. It is triggered by any transmission of urban property: a sale, a donation, or an inheritance. Crucially, it taxes only the land component, not the building, and it is collected by the town hall where the property is located, not by the national tax authority.

The tax is governed by articles 104 to 110 of the Texto Refundido de la Ley Reguladora de las Haciendas Locales (RDLeg 2/2004), as reformed by Real Decreto-ley 26/2021, de 8 de noviembre (BOE-A-2021-18276). Each municipality sets its own tax rate, coefficients, and any bonifications within limits established by state law. The maximum legal tax rate is 30 percent. Marbella, for example, applies a rate of 29 percent under its local ordinance.

This tax is separate from capital gains tax. The non-resident CGT of 19 percent taxes the profit on the entire property (land and building) based on actual purchase and sale prices. The plusvalia taxes only the land value increase, calculated from the cadastral value of the soil. You can read more about the cadastral system in our guide to Catastro and cadastral value in Spain.

What changed with the 2021 Constitutional Court ruling?

The Constitutional Court declared the old single-method calculation system unconstitutional on 26 October 2021, ruling that it breached the principle of economic capacity by taxing assumed gains that bore no relation to actual market movements. The reform that followed introduced two calculation methods and a no-gain exemption, giving taxpayers the right to choose the cheaper option.

The ruling, Sentencia 182/2021, declared articles 107.1, 107.2(a), and 107.4 of the TRLHL unconstitutional and null. The Court found that the old objective system, which calculated the tax solely from the cadastral land value multiplied by a fixed percentage based on years held, was alien to the reality of the real estate market and violated Article 31.1 of the Spanish Constitution. The government responded with Real Decreto-ley 26/2021, de 8 de noviembre (BOE-A-2021-18276), published on 9 November 2021 and effective from 10 November 2021, which introduced the two-method system that exists today.

How do the two calculation methods work?

Since November 2021, the taxpayer can choose between an objective method and a real-gain method. The town hall applies the objective method by default, but you have the right to opt for the real-gain method if it produces a lower bill. If the land has not increased in value at all, the tax does not accrue.

Method	Formula	When it is cheaper
Objective (default)	Cadastral land value x coefficient (by years held) x municipal rate	When the actual gain is large relative to the cadastral value
Real gain (optional)	(Sale price minus purchase price) x land proportion x municipal rate	When the actual gain is small or there is a loss
No gain	Not applicable	When the land value at transmission is equal to or lower than at acquisition

The objective method uses the cadastral value of the land at the date of transmission, multiplied by a coefficient that varies with the number of years you held the property. The state sets maximum coefficients each year through ministerial decree. The real-gain method calculates the actual profit on the land portion of the property: you take the difference between the sale price and the purchase price, multiply it by the proportion of the total cadastral value attributable to the land (not the building), and apply the municipal rate. You must prove both values with deeds.

Why are the 2024 coefficients still the legal maxima in 2026?

This is the most important practical development for 2026, and it confuses many sellers and advisers. The coefficients that town halls apply to the objective method are set as legal maxima by the state, and the 2024 table from Article 24 of RDL 8/2023 remains in force today because two successive attempts to update it have been rejected by Congress.

The sequence runs as follows. In December 2024, the government issued Real Decreto-ley 9/2024 (BOE-A-2024-26915), which set new maximum coefficients for 2025. Congress declined to convalidate it, and the Resolucion of 22 January 2025 (BOE-A-2025-1136) published the derogation. The 2024 coefficients stayed in force for all of 2025.

The same pattern repeated in 2026. Real Decreto-ley 16/2025 (BOE-A-2025-26458), published on 23 December 2025, attempted to raise the maxima again, with increases of up to 40 per cent in mid-tenure bands (the 9-year coefficient would have risen from 0.15 to 0.21) and a reduction for long holds (the 20-year-plus band from 0.40 to 0.35). Congress rejected the convalidation on 27 January 2026, the decree lost legal effect from that date, and the 2024 coefficients reverted as the reference. The proposed coefficients applied only to transactions between 1 and 27 January 2026.

The root cause is political, not technical. The Ley de Haciendas Locales envisages annual updates through the state budget (Leyes de Presupuestos Generales del Estado), but Spain’s budgets have been prorrogated since 2023. The government has resorted to decree-laws, which require congressional convalidation within 30 days, and Congress has twice refused. Until an approved budget carries the update or a decree survives the vote, the 2024 maxima persist.

What are the 2024 state coefficients for the objective method?

The coefficients below are the legal maxima set by Article 24 of RDL 8/2023, applicable to tax accruals from 1 January 2024 onward. They remain the vigent maxima for 2025 and 2026 because both update decrees were derogated. Town halls may apply these maxima or lower values in their local ordinances.

Years held	Coefficient	Years held	Coefficient
Under 1 year	0.15	11 years	0.10
1 year	0.15	12 years	0.09
2 years	0.14	13 years	0.09
3 years	0.14	14 years	0.09
4 years	0.16	15 years	0.09
5 years	0.18	16 years	0.10
6 years	0.19	17 years	0.13
7 years	0.20	18 years	0.17
8 years	0.19	19 years	0.23
9 years	0.15	20 years or more	0.40
10 years	0.12

The coefficient structure is non-linear. It rises through the mid-ownership years, dips in years 9 to 15, then climbs steeply for long holds. This reflects the legislative intent to track cyclical land-value movements rather than apply a straight-line accumulation.

How much would a Marbella property sale cost in plusvalia?

Consider a villa bought in 2016 for EUR 500,000 and sold in 2026 for EUR 700,000. The total cadastral value is EUR 200,000, of which EUR 120,000 (60 percent) is attributable to the land. The property was held for 10 full years, and Marbella applies a 29 percent tax rate under its ordinance.

Step	Objective method	Real-gain method
Base	EUR 120,000 x 0.12 = EUR 14,400	(EUR 700,000 minus EUR 500,000) x 60% = EUR 120,000
Tax	EUR 14,400 x 29% = EUR 4,176	EUR 120,000 x 29% = EUR 34,800

In this case the objective method is far cheaper, producing a bill of EUR 4,176 against EUR 34,800 under the real-gain method. The objective method wins because the cadastral value of the land is low relative to the actual market gain. This is a common pattern on the Costa del Sol, where cadastral values have historically lagged behind market prices.

The reverse can also happen. If you bought recently and sold for only a small gain, or at a loss, the real-gain method may produce a lower bill or zero. If the land value at transmission is equal to or lower than at acquisition, the tax does not accrue at all under Article 104.5 of the TRLHL. You must file a declaration with the deeds showing both values.

Who pays the plusvalia municipal and when is it due?

The taxpayer depends on the type of transmission. On a sale, the seller pays by default, though the parties can agree in the private contract that the buyer will assume it. On a donation, the recipient pays. On an inheritance, the heir or legatee pays. The filing deadlines differ by transaction type.

Transmission	Who pays	Filing deadline
Sale	Seller (or buyer if agreed)	30 working days from completion
Donation	Recipient (donee)	30 working days from the deed
Inheritance	Heir or legatee	6 months from death (extendable to 1 year)

Filing is done at the town hall where the property is located, either in person or through the municipal electronic sede. The declaration must include the deed of transmission, the previous title deed showing the acquisition date and value, and the cadastral reference number. For a full walkthrough of the selling process, see our guide to selling property in Spain.

Are there any exemptions or bonifications?

There is no general age-based exemption. The over-65 primary-residence exemption that many sellers know about applies to capital gains tax (IRPF), not to the plusvalia municipal. This is a common point of confusion, and several secondary sources incorrectly state that over-65s are exempt from the IIVTNU. They are not.

The main relief is the no-gain exemption under Article 104.5 of the TRLHL: if you can prove the land has not increased in value, the tax does not accrue. Beyond that, each town hall can set its own bonifications in its local ordinance. Marbella, for instance, offers a bonification for the inherited main residence of the deceased, calculated on the cadastral value of the dwelling, subject to an express request and proof of eligibility.

Transfers between spouses as part of a formal divorce or separation agreement, and certain dissolutions of joint ownership (extincion de condominio), have been ruled non-subject to the IIVTNU by Supreme Court jurisprudence, on the basis that these are not true transmissions but reorganisations of existing ownership. If you face a plusvalia bill you believe is wrong, our guide to appealing property tax in Spain covers the recurso de reposicion process.

How does plusvalia interact with inheritance tax?

On an inheritance, the heir faces two separate taxes: the Inheritance and Gift Tax (ISD) on the value of the inherited property, and the plusvalia municipal on the increase in land value from the original acquisition to the date of death. They are independent obligations filed with different authorities. The ISD is filed with the regional tax authority (in Andalusia, the Agencia Tributaria de Andalucia), while the plusvalia is filed with the town hall.

Andalusia applies a 99 percent bonification on ISD for Group I and II beneficiaries (direct descendants, spouses), which substantially reduces the inheritance tax burden. This bonification does not extend to the plusvalia municipal, which remains payable in full unless the local ordinance offers its own bonification. Our guide to inheritance tax in Andalusia for non-residents covers the ISD side in detail.

What should non-resident sellers know?

Non-resident sellers face the same plusvalia obligation as residents. The tax is local, not national, so residency status does not change the calculation or the rate. However, non-residents should be aware that the plusvalia is one of several costs on exit. When you sell Spanish property as a non-resident, the buyer retains 3 percent of the sale price as a CGT deposit (Modelo 211), you settle the actual CGT via Modelo 210 at 19 percent for EU/EEA residents or 24 percent for non-EU residents, and you pay the plusvalia municipal to the town hall. For a full breakdown of the exit costs, see our guide to repatriating sale proceeds from Spain.

If you do not have a fiscal representative in Spain, appointing one to handle the plusvalia filing is advisable. The town hall will not chase you abroad, but an unpaid plusvalia can accrue surcharges and interest, and can complicate future Spanish property transactions. The filing window of 30 working days is short, and missing it triggers late-payment surcharges that escalate with time. Our guide to the fiscal representative role explains when the appointment is mandatory.

This guide is general information, not legal or tax advice. Rules change and individual circumstances differ. Verify current requirements with an independent lawyer (abogado) or tax advisor (gestor/asesor fiscal) before acting.