Who pays it
| Transaction | Who is liable |
|---|---|
| Sale | As a general rule the seller, who obtains the increase |
| Inheritance | The heir who acquires |
| Gift | Whoever receives the gift |
In sales it is common to agree who bears the payment, but the agreement binds the parties only: before the town hall the liable person remains the one the law designates. It is worth being clear before signing.
Why the calculation changed in 2021
The Constitutional Court, in Judgment 182/2021, struck down the objective system for determining the taxable base for breaching the principle of ability to pay. In response Royal Decree-law 26/2021 was approved, adapting the consolidated Local Treasuries Law to that case law.
Two practical consequences still in force: you can choose between two calculation methods, and no tax is due where there has been no increase in value. In that case the person concerned must declare the transfer and provide the documents proving it: it is not automatic, it must be proved with the purchase and transfer deeds.
The two methods
- Objective method: starts from the cadastral value of the land and coefficients according to the years elapsed.
- Real method: starts from the difference between the purchase value and the transfer value of the land.
You may apply whichever is more favourable, and the difference between the two is sometimes several thousand euros. The coefficients are updated and each town hall sets its rate within the legal limits, so the specific calculation depends on the municipality and the year.
We do not publish amounts or coefficients here. They change by municipal ordinance and by state update. For your case, look at your town hall's current ordinance and the consolidated text linked above.
Deadlines and procedure
The transfer is declared to the town hall within the period set by the ordinance, different for transfers between living persons and for inheritances. Many town halls work by self-assessment, that is, you calculate and pay; others assess it themselves and notify you.
If you sold at a loss and were still charged the tax, there are ways to appeal, but they have deadlines. It is the case where most people arrive late.
The two calculation methods, and why you can choose
After Constitutional Court judgment 182/2021, which struck down the previous system, Royal Decree-law 26/2021 left two ways of calculating the taxable base, and the taxpayer keeps whichever is lower.
Objective method. The cadastral value of the land at the moment of accrual is multiplied by the coefficient for the number of years over which the increase arose, with a maximum of twenty years. Maximum coefficients are set by the State and town halls may lower them in their ordinance, as well as apply a reduction coefficient of up to 15% on the value of the land.
Real method. If the actual increase is lower, that is used. It is calculated as the difference between the transfer value and the purchase value of the land, applying to both the proportion that the cadastral value of the land represents of the property's total cadastral value. In each case the higher of the value in the deed and the value checked by the administration is taken, and expenses and taxes on the transaction are not counted.
The choice is not automatic: both must be calculated and the second expressly requested, providing the purchase and sale deeds.
If you sold at a loss, there is no tax
Article 104.5 says it plainly: the tax does not apply where it is established that there has been no increase in the value of the land between purchase and transfer.
But it is not automatic. You must declare the transfer all the same and provide the deeds documenting the purchase and the sale. Without a declaration the exemption is not recognised, and the town hall will assess by the objective method.
A detail with future effect: in a later transfer of a property that used the exemption, when counting the years of increase the period before its acquisition is not taken into account.
Deadlines, and who pays
- Transfers between living persons, such as a sale or a gift: thirty working days from accrual.
- On death: six months, extendable to one year at the taxpayer's request.
In a sale the taxpayer is the seller. Where the seller is non-resident, the buyer is secondarily liable, so check that it has been settled before closing the transaction. In inheritances and gifts whoever acquires pays.
Many town halls, València's among them, have set up self-assessment, so the taxpayer calculates and pays within those periods.
The 2026 coefficients: a warning
The maximum coefficient amounts used to be updated each December by royal decree-law. The update approved for 2026 by Royal Decree-law 16/2025 was repealed by resolution of the Congress of Deputies, published by decision of 27 January 2026, just as had happened the previous year with the 2025 one.
Practical consequence: any calculator or article quoting «2026» coefficients without checking that repeal may be giving figures that are not in force. The applicable coefficients are those of the current consolidated text and those set by each town hall's tax ordinance, which cannot exceed them. One more reason not to trust copied figures and to check the text in the BOE, linked below.
Selling, inheriting or gifting a property?
We calculate the plusvalía by both methods, file the self-assessment at the town hall and keep track of the deadlines.
Frequently asked questions
Is plusvalía paid if I sell at a loss?
It should not be paid where there is no increase in value, but you must declare the transfer and prove it with the purchase and transfer documents.
Who pays in a sale?
As a general rule the seller. Agreements between the parties do not change who is liable before the town hall.
Can I choose the calculation method?
Yes. Since the 2021 reform there are two methods and the one more favourable to the taxpayer applies.
How much is it?
It depends on the municipality, the value of the land and the years elapsed. Look at your town hall's current ordinance.
And in an inheritance?
Whoever acquires pays, and the declaration period differs from that for transfers between living persons.
I was overcharged. Can I claim?
There are ways to appeal, but they are subject to deadlines. Review it as soon as possible.
Legal basis
- Royal Legislative Decree 2/2004, consolidated Local Finances Act
- Royal Decree-law 26/2021 adapting the municipal capital gains tax to constitutional case law
- Constitutional Court judgment 182/2021 on the municipal capital gains calculation method
- Law 39/2015 on Common Administrative Procedure, art. 14 on electronic dealings with the administration
Official sources
Written by Irina Klein. Reviewed by Elena Alonso Volostnova, registered gestora administrativa (ICGA Valencia). Updated on 5 October 2026. This page is general information and does not replace personalised advice on your case.