Plusvalía Tax in Marbella: How It Works After the Reform

The plusvalía is a municipal tax on the increase in the value of the land under a property, charged whenever the property changes hands: on a sale, a gift or an inheritance. After a Constitutional Court ruling in 2021, the system was rewritten, and owners now pay only when there has really been a gain, and can choose the cheaper of two calculation methods.

In October 2021 Spain's Constitutional Court declared the old calculation method unconstitutional, because owners had to pay even when they sold at a loss. The government reformed the tax by Royal Decree-law 26/2021 in November 2021. The plusvalía did not disappear; it was fixed.

If you sell for less than you paid (comparing the prices in the purchase and sale deeds, or the values used for tax if they are higher), there is no plusvalía to pay. You must declare the transfer and prove the loss with both deeds.

• Objective method: the land part of the cadastral value at the time of sale, multiplied by a coefficient that depends on how many years you owned the property. The coefficients are set by central government and revised from time to time.
• Real gain method: the actual gain between purchase and sale, applied to the land portion only (in the same proportion as land to total in the cadastral value).
• The town hall applies its tax rate to the result, up to a legal maximum of 30%.
• Properties sold within one year of purchase are also taxed, which was not always the case before.

For owners who bought recently or sold at a modest gain, the real gain method is often cheaper. For long-held properties, the objective method often comes out lower. Your lawyer or gestor can calculate both.

• On a sale: the seller pays. When the seller is a non-resident individual, the buyer becomes legally responsible for the tax, so the amount is normally retained from the price at the notary.
• On an inheritance or gift: the heir or the person receiving the gift pays.
• Deadline: 30 working days after a sale or gift, and six months after a death (extendable to a year on request).

Ask for a plusvalía estimate before you set your price, alongside the 19% capital gains tax for non-residents or the income tax rates for residents. It is part of the seller's costs, together with agency fees and any cancellation of mortgage. Marbella Hills Homes can put you in touch with a trusted local lawyer who can calculate what you will receive after taxes and costs.

This article is general information, updated in October 2026. Tax rules change and every case is different, so always confirm your own situation with a Spanish tax adviser or lawyer before acting.