Spain’s Tribunal Constitucional (Constitutional Court) has ruled that the current system for imposing plusvalia tax in relation to property sales is unconstitutional.
The tax is in essence capital gains tax. Up until now, the tax has been payable by sellers of property in Spain to varying degree. This occurs in many cases even if no increase in value was experienced.
This has created widespread confusion and a growing voice of dissent in relation to this unjust tax burden.
For the time being, nothing will change. The tax legislation will need to be amended and introduced.
Once done, this will benefit property sellers throughout the whole of Spain.
It will also open the opportunity for application for reclaims of tax paid.
If you have paid plusvalia due to a recent property sale, please contact us.
We are opening a register for potential tax reclaims.