Costa Blanca Capital Gains Calculator

The Municipal Capital Gains Tax is how the Tax on the Increase in Value of Urban Land (IIVTNU) is commonly called. It is a municipal tax that is levied on the increase in value of the land on which a property is located from the time it was acquired until it is transferred to a new owner.

Table of contents

1. How is the Municipal Capital Gains Tax calculated on the Costa Blanca?

As it is a municipal tax, its collection is the responsibility of the Town Halls. Therefore, to calculate the Municipal Capital Gains Tax on the Costa Blanca it is necessary to go to the regulations of each Town Hall to determine the amount to be paid. In the province of Alicante, the Plusvalia Municipal is managed and collected by SUMA, Gestión Tributaria de la Diputación de Alicante.

You may be interested in: How to calculate the Municipal Capital Gains in Teulada-Moraira

At Hispania Homes by Keller Williams, we have prepared a Municipal Capital Gains Calculator on the Costa Blanca so that you can estimate what you will have to payfor this tax based on the regulations of each Town Hall. Access the Capital Gains Calculator of Hispania Homes by Keller Williams, select the municipality in which your property is located and estimate what you will have to pay for Capital Gains automatically. Our calculator is designed so that you can make the calculation based on the two methods admitted by the Administration.

1.1 Objective Method

The Objective Method in the calculation of the Municipal Capital Gains Tax on the Costa Blanca is based on a fixed mathematical formula in which neither the actual purchase price nor the sale price is taken into account, but only the valuation:

The cadastral value of the land of the property.
The number of years elapsed between purchase and sale.
The annual coefficients approved by the State in the General Budget.
The tax rate established by each municipality (normally between 20% and 30%).

1.2 Actual Goodwill

The Real Capital Gain Method in the calculation of the Municipal Capital Gain on the Costa Blanca is calculated based on the actual profit obtained when selling a property. That is to say:

The difference between the transfer value (sale or inheritance) and the acquisition value (purchase or donation) is taken.
The percentage that the value of the land represents of the total cadastral value is applied to this gain.
Finally, it is multiplied by the tax rate established by the City Council.

2. What documentation will you need to calculate the capital gains tax?

Cadastral Value of Land

The Plusvalia Municipal is applied on the increase in value experienced by the land where the property is located, without considering the revaluation of the construction. This information is reflected in the most recent IBI receipt.

Equity Gain

It represents the difference between the sale price of a property and the price paid at the time of its acquisition, thus showing the profit obtained in the transfer transaction.

Total Cadastral Value

It is the economic estimate that the Administration assigns to a property, obtained by adding the value of the land and the value of the building. You can consult this information in your last IBI receipt.

Please note that the total amount payable obtained with our Costa Blanca Capital Gains Tax Calculator is subject to bonuses and exemptions that can make the amount payable lower or even exempt you from paying this tax.