Plusvalía tax on a sale: who pays it
Plusvalía is a municipal tax on the increase in the value of urban land during the period of ownership, and it is paid by the seller, who may choose between two calculation methods and owes nothing at all where no gain arose.
gelisted editorial team · Updated 15 August 2026
The short version
- The seller pays it, except in a gift or inheritance where the recipient does.
- Two calculation methods exist and the taxpayer may use the lower one.
- No tax is due where the land value did not increase.
- The filing deadline is 30 working days from the sale.
It taxes the land, not the building, and only the part of the land value that grew while you owned it. That distinction explains most of the confusion around it.
The two methods
The objective method applies coefficients set by law to the cadastral land value according to the number of years of ownership. The real gain method takes the difference between the acquisition and transfer values of the land component and taxes that. Since the 2021 reform the taxpayer may calculate both and apply whichever produces the lower result, which in a flat or falling market is usually the second.
| Point | Rule | Note |
|---|---|---|
| Who pays on a sale | the seller | |
| Who pays on a gift or inheritance | the recipient | |
| What is taxed | urban land value increase | not the building |
| Methods available | 2, the lower applies | since the 2021 reform |
| No increase in value | no tax due | must be evidenced |
| Ownership under 1 year | taxable under the new rules | |
| Filing deadline on a sale | 30 working days | |
| Filing deadline on an inheritance | 6 months, extendable |
When nothing is due
Where the land did not increase in value between purchase and sale, no tax arises. The seller must evidence this by comparing the deeds of acquisition and transfer and isolating the land component using the proportion the cadastre assigns. A property bought in 2007 and sold in 2014 frequently produced no taxable increase, and many owners paid anyway because they did not know they could show it.
Non-resident sellers
Where the seller is not resident in Spain, the buyer is made substitute taxpayer for plusvalía, which means the town hall can claim it from the buyer if the seller does not pay. For that reason buyers commonly retain the estimated amount at completion and file the tax themselves. The retention should be agreed in the deposit contract with a figure and a mechanism for returning any excess.
The same applies to the 3 % withholding on the price that a buyer must pay to the tax office on account of a non-resident seller's capital gain.
Filing
Within 30 working days of the sale, at the town hall where the property sits, using its own forms. Some municipalities issue an assessment and others require a self-assessment. Late filing carries surcharges that rise with the delay. The documents needed are both deeds, the last IBI receipt showing the cadastral land value, and identification, plus the calculation if the real gain method is used.
A worked example helps. On a property bought in 2010 and sold in 2026, the land component might represent 40 per cent of both deeds. If the land value rose from 60,000 € to 80,000 €, the real gain method taxes 20,000 €, and the objective method applies the coefficient for 16 years of ownership to the cadastral land value. Calculating both and applying the lower is the taxpayer's right.
Frequently asked
+Who pays plusvalía?
The seller on a sale, and the recipient on a gift or an inheritance.
+What exactly is taxed?
The increase in the value of the urban land during ownership, not the value of the building.
+Can I choose the calculation?
Yes. Two methods exist and you may apply whichever produces the lower result.
+What if the property lost value?
No tax is due, but you must evidence it by comparing the land component in both deeds.
+What happens if the seller is non-resident?
The buyer becomes substitute taxpayer, which is why buyers usually retain the amount at completion.
Sources
- 1Boletín Oficial del Estado, BOE (August 2026)
- 2Govern de les Illes Balears, Govern de les Illes Balears (August 2026)