Everything you need to know about Plusvalia Tax in Benitatxell

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What is Plusvalia Tax?

This direct, municipal tax is levied on urban property, not on rural property and burdens the increase in the value of the urban land that may have taken place over a period of the last 20 years prior to the transmission. 

Taxpayers are obliged to submit a self-assessment declaration form to be submitted to Suma at the moment the property is sold or obtained by inheritance or donation.  What is taxed is the transfer of the land on which the house is built, not the building itself.  

Ordinance in force in the municipality of Benitatxell

Options to calculate the tax:

There are two ways of calculating the tax due to several rulings of the Constitutional Court in 2017 and 2019 which: 

• declared null and void the possibility of taxing transactions settled at a loss
• decreed that it could not result in a tax payment greater than the gain itself 
• annulled the calculation method for not properly estimating the value of the real estate. 

Following these rulings if the current value of the property is equal to or lower than the acquisition value, no plusvalía tax is payable.

The taxpayer may choose between these two models, whichever is more convenient for him/her. The resulting amount corresponds to the data provided by the interested party, however, after verification by the tax administration, the final amount will be determined.

You can use this tax calculator in order to determine the best choice for you.

Data required for the calculation:

• Total cadastral value (*)
• Land value (*)
• Value of construction (*)
• Coefficient (See table below)
• Year of purchase
• Year of transfer
• Sales amount
• Purchase amount

(*) Data available in the IBI property tax receipt

1. The Objective system: the cadastral value of the property is multiplied by coefficients according to the years elapsed between the acquisition and the transfer. 

Example of capital gains tax in Benitatxell using the "objective system":

• Year of purchase: let's suppose that we have bought a property 8 years ago whose
• Total cadastral value: 96.000€. 
• Coefficient: the coefficient to be applied for that period of time is 0,10 according to the capital gains coefficient table below. 
• Taxable base: 9.600€ (96.000€ multiplied by a coefficient of 0,10)
• Tax liability: 2.208€ (9.600€ multiplied by the tax rate of 23%).

2. The Real capital gains system: this is calculated by the difference between the sale price and the purchase or acquisition price of the property multiplied by the percentage of the land value over the total cadastral value. 

Example of capital gains tax in Benitatxell using the "Real capital gains system": 

• Purchase amount: Let's suppose that the property was bought 8 years ago for 150.000€
• Total cadastral value: 96.000€
• Sales amount: Let's suppose that the property is going to be sold for 240.000€
• Capital gain: 90.000€ (=240.000€-150.000€).
• Taxable base: if we take into account the % of the land value over the total cadastral value calculated based on the data available in the IBI property tax receipt, in our case 70%, we will obtain a taxable base of 63.000€ (90.000€ multipled by 70%)
• Tax liability: 14,490€ (63.000€ multiplied by 23% tax rate) 

BENITATXELL CAPITAL GAINS COEFFICIENT TABLE

Tax rate in force in Benitatxell (2025): 23%.

Deadline:

The declaration form has to be submitted within 30 working days from the date of the operation for anticipated inheritance, or within 6 months, extendible to one year, from the date of death for actual inheritance.

How to submit the declaration:

• Through the Internet: On Suma Online Office, option "Capital gains tax declaration".

• In person: At any Suma office you can present the request providing the necessary documentation. This means is not available for legal persons and for individuals who have to communicate with the Administration by electronic means.

• At any Post Office: Submitt your self-assessment form signed and addressed to any Suma office, enclosing the necessary documents.

Documentation to be provided:

A copy of the public or private document formalising the act or contract giving rise to the obligation to pay the tax.

Revision of cadastral values:

The revision of cadastral values in Benitatxell from September 2024, which comes into effect in 2025, will lead to a very high increase in the amount of Plusvalía tax calculated by the Objective system as well as in the IBI property tax. Especially dramatic are the tax increases in Cumbre del Sol given the high market values. According to the information released by the Town Hall, there were many houses whose cadastral value was less than 20% of their market value. The collective valuation and updating of cadastral values made by the Cadastre is expected to match 50% of the market value, leading to a huge increase in both taxes. 

The value of the land usually represents between 30% and 70% of the total cadastral value of a property. This percentage can vary depending on factors such as the characteristics of the property and its location. After the collective valuation carried out the value of the land in relation to the total cadastral value has increased especially in Cumbre del Sol from an average of 15-20% to 70%.

To calculate the value of land, different methods can be used:

• Comparison method: this is based on comparing the land with other similar land in the same area, considering its characteristics and differences in order to adjust the prices.
• Cost method for land with buildings: the value of the property is calculated by adding the value of the land and the replacement cost of the building, taking into account the depreciation due to the age and condition of the building.

General collective valuations are made by the Cadastre in Alicante and initiated after the Town Hall has expressed an interest when substantial differences are detected between current market values and those that served as the basis for determining current cadastral values. The Cadastre is a state body that depends on the Ministry of Finance.

Plusvalía Tax Discounts

We would like to recall that in accordance with the Royal Decree 26/2021 the Town Hall is entitled to approve discounts up to 95% off the whole amount for land transferences and therefore in the Plusvalía tax. 

Average annual income from Plusvalía and IBI property tax in 2025 

• Income from Plusvalía tax (*1): 130.000€
• Income from IBI property tax (*2): 3.050.000€ with an annual increase of 290.000€ compared to 2024 before the update of cadastral values. IBI revenue is expected to increase every year by 290.000€ during the next 10 years.

(*1) Source: https://serviciostelematicosext.hacienda.gob.es/. This figure is only an estimate by the Town Hall based on expected unknown future transactions. The real value could be much higher.

(*2) Source: https://serviciostelematicosext.hacienda.gob.es/. This figure is accurate as it is based on known objective data from SUMA.