Royal Decree 26 \/ 2021<\/a> that adapted the Law regulating Local Treasury to the recent Constitutional Court Sentence. It must be noted, however, that the Sentence was published after Nov. 08, on Nov. 25th and taxpayers only knew of their existence through the Informative Notes issued by the Constitutional Court, the first one of them on Oct. 26.<\/p>\n✔ Such Royal Decree came into force on Nov. 10 this year. This implied that there was a legal vacuum for the transactions subject to the \u201cPlusval\u00eda Municipal\u201d from Oct. 26, the date on which the Constitutional Court communicated the contents of its Sentence and Nov. 10, given that the new regulations do not foresee their retroactive application.<\/p>\n
✔ All in all, we deem it worth reviewing the cases when this tax has been paid within the statute of limitations period and analysing the possible outcome should a refund application for the undue payment of this tax be filed.<\/p>\n
Royal Decree 26 \/ 2021 has passed new regulations in relation to the local tax on the increase of value of urban land (the so \u2013called, Local gains tax \u2013 \u201cPlusval\u00eda Municipal\u201d) with the aim of complying with the mandate of the recent Constitutional Court Sentence 182 \/ 2021 of Oct. 26.<\/p>\n
As a consequence of it, the long lasting controversy in relation to this tax has ended on the basis that keeping the present objective and mandatory computation scheme to determine the taxable base did not take into account the reality of the real estate market and the economic crisis and was, therefore, apart from the taxpayer\u2019s taxable economic capacity thus infringing the economic capacity as a taxable criterion (article 31.1. of Spanish Constitutional Law).<\/p>\n
At this point, let us go through on how are we going to liquidate this local tax, going forward.<\/p>\n
✔ With the purpose of complying with the Constitutional Court Sentence 59 \/ 2017 mandate of not taxing situations where there is no increase of land value, a new non subjection scenario is introduced for the cases when it is proven, at the taxpayer\u2019s request, that there has been no such increase of value.<\/p>\n
✔ With the aim of attending the express mandate of the Constitutional Court Sentences 126 \/ 2019 and 182 \/ 2021:
\ni. The determination of the taxable base is improved so that it always reflects the real estate market value: (i) local town halls have the possibility of decreasing the land\u2019s cadastral value; and, (ii) the former annual percentages that were applied on the land value to determine the taxable base are substituted by maximum percentages based on the number of years since land was acquired, that shall be annually updated taking into account the prices\u2019 evolution of real estate sales carried out.
\nii. Taxpayers can adapt the final tax on the real increase of land value obtained, to avoid any taxation that does not take into account the taxpayer\u2019s economic capacity.<\/p>\n
✔ Hence, to calculate the tax quote, taxpayers may elect between:
\ni. A new objective computation that shall be adapted to the real estate market evolution and that will be based on the cadastral value at the moment of its transfer, multiplied by the percentages approved by local Town halls.
\nii. A new computation based on the real gain for the difference between the purchase and sale value, if the taxpayer can prove that the real gain is lower than the objective gain calculated based on the cadastral value.<\/p>\n
✔ It must be noted that these new regulations do not have retroactive effects but enter into force on November the 10th. There is a sort of a regulatory gap during the period since the Constitutional Court Sentence was known up to the 10th of November 2021.<\/p>\n
✔ Local town halls that apply this local tax on gains will have to modify their local rules and adapt them to the new regulations within a 6 months term. Up until this is completed, the maximum percentages referred to above to determine the taxable base shall apply.<\/p>\n
✔ Perhaps, in the future, one may question whether keeping this local tax makes any sense, when taxpayers are already taxed in the Personal income tax or Corporate income tax on the real gain obtained. <\/p>\n","protected":false},"excerpt":{"rendered":"
On Oct. 26, the Spanish Constitutional Court published the Informative Note 99 \/ 2021 which declared the unconstitutionality and nullity of the articles of the Law regulating Local Treasury that established an objective method to determine the taxable basis for the Tax on the Increase of Value of Real estate (the so \u2013 called, Plusval\u00eda […]<\/p>\n","protected":false},"author":4,"featured_media":20996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[997,1348],"tags":[1372,1481],"class_list":["post-21000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-expertos-en","category-taxation","tag-fiscalidad-en","tag-tax2021"],"yoast_head":"\n
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<\/p>\n