Tax on the increase in the value of urban land
The capital gain after Royal Decree-Law 26/2021, of November 8.
On November 9, 2021, Royal Decree-Law 26/2021, of November 8, is published in the BOE, which adapts the revised text of the Law Regulating Local Treasury, to the recent jurisprudence of the Constitutional Court.
Motivation of the normative modification:
Constitutional Court
Judgment 59/2017 Constitutional Court Judgment 126/2019
Judgment 182/2021, regulatory vacuum on the determination of the tax base that prevents the settlement, verification, collection and review of this local tax and, therefore, its enforceability.
IVTNU taxes the increase in the value of the land, revealed at the time of accrual and experienced over a period of 20 years, but intends to adapt the taxable base of the tax to the effective economic capacity of the taxpayer in order to comply to the mandate of the Constitutional Court.
Two new methods for calculating the Tax Base:
It will be the taxpayer himself who decides which one is more advantageous.
- Objective system: Amount of the tax is calculated by multiplying the cadastral value by new coefficients that will be set annually and that will take into account “the real estate reality”.
- Real Capital Gain: Taxpayers will have the option to pay taxes on the real capital gain of the land (difference between the sale price and the purchase price) if it is lower than the tax base calculated by the target system.
In this case, the calculations may be subject to verification by the Town Councils.
Novelties of the Tribute
In this sense, a new assumption of not subjecting to the tax is introduced for the operations in which it is verified, at the request of the taxpayer, that an increase in value has not been obtained.