How to Pay Capital Gain: Calculation, Who Should Do It and MORE

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Every Spanish citizen should know How to Pay the Capital Gain, as it occurs frequently. The reason is that the Spanish city council charges more than 2,000 million euros for this every year.

The municipal capital gain, also known as the tax on the increase in the value of urban land (IIVTNU), is one of the leading taxes in the area of ​​sales, inheritance or donation of a home.

Calculation to Pay the Capital Gain

If you are going to sell your home, or you are going to receive a donation or an inheritance, then you are interested in knowing how much you will have to pay for capital gains municipal.

The answer is complicated. And each city council applies its own coefficients, resulting in very different results in each case.

We indicate you, How to calculate it?

You need basic information. For example, the cadastral value of the land on which you build your house. The search is easy because it is noted on the IBI receipt. It is important not to be confused with cadastral value or architectural value.

You need basic information. For example, the cadastral value of the land on which you build your house. The search is easy because it is noted on the IBI receipt. It is important not to be confused with cadastral value or architectural value.

You can find information about most coefficients on the Internet. If you cannot find them, you should contact the competent authority.

We indicate the coefficients, so that you can calculate the capital gain in Barcelona.

In Barcelona

  • Period up to 5 years, it has a percentage of 3.7%.
  • Cycle up to 10 years, has a percentage of 3.5%.
  • Time up to 15 years, it has a percentage of 3.1%.
  • Up to 20 years old, it has a percentage of 2.8%.

Finally, you will have to solve the following formula:
Land value = X €
Full years since you acquired the home = Y years
Increase by years (see ordinance) = Regulatory coefficient x Y years = Z%
Tax base = X € x Z%
Tax rate (see ordinance) = 30%

The tax rate is a variable value. On Barcelona is 30% (maximum applicable tax rate). On Madrid is 29%.

Capital Gains (€) = Tax Base x 30%

If you have done all the steps, you will have obtained a value as a result, which is close to the amount you will have to pay when you sell your property.

Example – Buying and selling a home in Barcelona

Buy a home in 2009 and sell it in 2019. As the capital gain It is a tax that takes into account the value of the property, you only take the cadastral value of the land as a reference:

Land value: € 100,000
Total years elapsed: 10 years
Increase over the years: 3.5% (annual) x 10 years: 35%
Tax base: 100,000 x 35% = € 35,000
Tax rate: 30%
Capital Gains Value: € 35,000 x 30% = € 10,500

Pay the Capital Gain in Madrid

On Madrid, You can carry out the online management of the self-assessment of the tax, and pay it in the duly authorized banking entities, or request more information in your Taxpayer Service Offices.

Taking into account, you should always make a appointment That you can order online, or by calling the phone number 915298210.

These are the offices of Attention to the taxpayer where you can make the payment:

  • Alcala 45.
  • Sacramento 3.
  • Iron 27.
  • Raimundo Fernández Villaverde 32.
  • Ramon Power 24.

Watch page.

Pay the Capital Gain in Barcelona

The City Council of Barcelona originally use the self-assessment system.

If applicable, there is an agreement between the administration and the College of Notaries of Catalonia, by means of which the Notary can deliver the self-assessment sheet to you at the time of signing.

If it does not get to do the NotaryYou have another option of being able to request it online at some of the citizen service centers in your town, or by calling the free phone number 010 and 931537010 to make calls outside the metropolitan area. Consider that you will have to do it within the established deadlines.

When you have the document in hand, you have two alternatives:

  1. Go to one of the banking entities that are on the back, and make the respective payment.
  2. Cancel the balance with the card on the website of the Municipal Institute of Finance.

In any of the cases, once said payment has been made, you must send the Simple Copy of the Deed of the concession to the Municipal Institute of Finance, or take it personally to the citizen service office of your locality.

Offices with face-to-face service in Barcelona:

  • Municipal Institute of Finance – Llacuna 63.
  • Ciutat Vella – Ramelleres 17.
  • Pl. Sant Miquel – Pl. Sant Miquel 3.
  • Eixample – Aragó 329.
  • Sants-Montjuic – Creu Coberta 104.
  • Free Zone – Pg Free Zone 185.
  • Les Corts – Pl Comas 18.
  • Sarrià – Anglí 31.
  • Gràcia – Pl Vila de Gràcia 2.
  • Horta – Lepant 387.
  • Nou Barris – Pl Major Nou Barris 1.
  • Ciutat Meridiana – Costabona 3.
  • Sant Andreu – Segre 24.
  • Sant Martí – Pl Valentí Almirall 1.

Who Must Pay the Capital Gain?

When you sell an apartment, the seller is the one who has to pay the capital gains to the town hall because it is he who benefits from the sale. However, as long as both parties agree, the tax can be transferred to the buyer. If it is not clear, the competent authority will require the seller to pay taxes.

If the seller does not live in Spain, the buyer you will become a taxpayer. For foreigners, the payment obligation will fall on the buyer.

In the case of inheritance or donation, the tax will be borne by the receiver.

There are several cases in which it will not be paid: among the spouses, when it pertains to the historical cultural heritage and between specific societies.

This is how, if the sale of the house is made between a married couple, in favor of the conjugal society, in payment of their common assets, for example, when adjusting the matrimonial economic regime, or favoring the children by complying with established sentences such as nullity, divorce, or separation of property.

Historical and cultural heritage, when the property belongs to a set of historical-artistic constructions or is declared to have cultural interest, and its owner or owner of the property right proves that he has been responsible for the protection or necessary improvement.

Specific entities: countries, autonomous communities, municipalities or their local entities, charities or charitable-teaching institutions, etc.

Frequent questions

How long is there to pay the capital gain?

Municipal capital gains can be a very expensive tax. That is why it is so important that you must know the conditions that you must solve, otherwise you will face important additional costs.

Not all situations are the same. It will be considered whether the transmission is internal to the body or the cause of death.

In the first case, the most representative example is the sale of homes, with a term of 30 days from the date of broadcast.

For death, as an inheritance, the term is 6 months, like inheritance tax, the term can be extended to 6 months.

Who is exempt from paying the municipal capital gain?

Any purchase or sale of a home implies the payment of said tax. But if you ask yourself, in which certain cases is the municipal capital gain not canceled?

As in all laws there are exceptions. However, more than talking about exceptions, here we will deal with exemptions.

Since there are a variety of cases and situations, in which you could avoid this municipal tax, the exemptions most common are:

  • When the sale is made between spouses or for the benefit of the children, in accordance with the faithful fulfillment of the marriage nullity sentences or in the event of divorce.
  • If the transmission of the real estate is originated from the dation in payment to later make the cancellation of a mortgage.
  • The shares of property and rights, made by the spouses within the conjugal partnership.
  • The transfer of flats or premises examined by the housing cooperatives in favor of the members of the cooperative.
  • In purchases or sales related to the SAREB.
  • Property located in a historical and artistic complex or declared separately as cultural heritage and listed in the “General List of Protected Buildings”.
  • Other entities that comply with Law No. 49/2002 of December 23, such as the Red Cross or non-profit entities, may also be exempt from the capital gains payment.
  • State and its autonomous institutions.
  • Managing entity of the Social Welfare and Mutual Insurance Association provided for in the «Law of Organization and Supervision of Private Insurance».
  • People or entities recognized by international treaties or conventions.
  • Since May 2017, under judgment favorable to the Constitutional Court, those who sell their houses at a loss can claim not to pay capital gains. Of course, the process is not straightforward. Not only do you need to show that this increase did not occur, but the City Council will be able to provide its own evidence and accept or reject your request.

What is the Municipal Capital Gain?

The capital gains tax is a municipal tax, and most of the world is usually related to the sale of houses. But when the tax is imposed on the revaluation of the land where the property is located, also appears in the case of inheritances and donations.

In this sense, IIVTNU relies on the sale of houses to obtain profits from the houses through donations or inheritances. Watch page.

Through sale, inheritance or donation, the capital gains They are calculated by applying the tax rate set by each municipality to the increase in the value of the land, but without exceeding the upper limit of 30%.

This value can be found on the IBI receipt and multiplied by the number of years of ownership of the property and the annual percentage of each municipality.

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