Can I reclaim the amount of Plusvalia paid?

The Spanish Constitutional Court has recently published a note announcing its ruling on the revised version of the Municipal Increment Value Tax – Plusvalia, which takes effect in real estate transactions. The court concludes that the assessment basis for levying the tax on the increase in value of urban land and real estate is unconstitutional. And, accordingly, is no longer permitted to be levied by municipalities in its current form. According to the judges, the way in which the value of a property for sale is determined is not objective, as an increase in value is always assumed, regardless of whether there is such an increase or the actual amount.

As long as the legislator does not change the articles of the ordinance, the municipalities cannot collect this tax from property sellers for the time being.

Can I reclaim amounts paid?As far as tax payments before the ruling are concerned, there are several possible scenarios: On the one hand, taxpayers who have made a self-assessment and it is not yet time-barred – four years from the day following the end of the period for filing and voluntary payment – can apply within this period to correct the self-assessment submitted and claim a refund of the income wrongly received; On the other hand, taxpayers who have declared the tax and have been notified of the settlement by the municipality may only file an objection if no month has passed since the date of notification, otherwise the settlement has become final. If the settlement has not yet been issued, they can no longer do so; and finally, all those who have an open case because the municipality has proposed a new settlement after reviewing the self-assessment or because they have objected to the settlement can reclaim paid tax amounts.

Omnia Consulting

C/ Sant Miquel, 46 esc. dcha, 2º piso, despacho 10-A y 10-B

E-07002 Palma de Mallorca

Tel. 0034 971 288 442

Fax 0034 971 282 924

This report contains basic information, is to be considered general and does not constitute legal advice in any way. All rights are reserved. It is forbidden to use, reproduce, distribute, publish and communicate and transform all and/or part of this article without written authorisation from OMNIA CONSULTING MALLORCA, S.L.U.

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