Learn how to calculate the Municipal Capital Gains Tax to be paid in Teulada-Moraira step by step, and download our Excel Template to automatically calculate the Municipal Capital Gains Tax for your property yourself.
Municipal Capital Gains Tax is a tax levied on the increase in value of urban land at the time of transfer. As it is a municipal tax, it depends on the Council of the municipality in which the property changing hands is located, in this case, the Council of Teulada.
Following Royal Decree-Law 26/2021, of 8 November, approved by the Cabinet of Ministers, various new features have been introduced with regard to this tax, including the possibility of choosing between two different ways of calculating the Taxable Base.
Below we will outline all the new features introduced by the new regulations and explain each of the available methods to calculate the Municipal Capital Gains Tax in Teulada-Moraira: Objective Method and Actual Capital Gains Method.
Calculation of Municipal Capital Gains in Teulada-Moraira
At Hispania Homes, we have prepared an Excel template with which to automatically calculate the Municipal Capital Gains Tax to be paid in Teulada-Moraira. Download our Excel Template and find out which of the options available for calculating the Municipal Capital Gain is most advantageous for your particular property.
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Municipal Capital Gains Tax for Moraira-Teulada, Benissa and Jávea
Access the Excel template with which you can automatically calculate the Municipal Capital Gains Tax for your property in Moraira
Capital Gains Tax in Teulada-Moraira: Objective Method
One of the systems available for calculating the Municipal Capital Gains Tax in Teulada-Moraira is the Objective Method, a process which takes into account the years that have passed between the acquisition of the property and the time of its transfer. To do this, we will have to follow the following steps:
1st: Calculate the Taxable Base
First, we will take the cadastral value of the property’s land and apply the corresponding multiplication coefficient depending on the number of years that we have been in possession of the property, in accordance with the following table:
2nd: Apply the Tax Rate
We will then apply the Tax Rate established by the Town Council of Teulada, 30% in this case, to the Taxable Base.
Case Study
Once we have obtained the Taxable Base (6,500 euros), we will apply the Tax Rate established by the Town Council of Teulada (30%), obtaining a final Amount of Tax to be paid of 1,950 euros.
Capital Gains Tax in Teulada-Moraira: Actual Capital Gains
The other method available for calculating the Municipal Capital Gains Tax in Teulada-Moraira is the Actual Capital Gains Method, a method which takes into account the Capital Gain obtained on the sale of the property regardless of the number of years the seller has owned it. To calculate the rate using this method we will have to apply the following steps:
1st: Calculate the Capital Gain
First, we will calculate the Capital Gain by subtracting the amount we bought the property for from the sale price.
2nd: Multiply by the % that represents the cadastral value of the land
We will then multiply the Capital Gain obtained by the percentage that the cadastral value of the land represents of the total cadastral value of the property to obtain the Taxable Base.
3rd: Apply the Tax Rate
Once we have obtained the Taxable Base, all that remains is to apply the Tax Rate corresponding to the Council of the municipality in which the property is located.
Case Study
Continuing with the same example that we used in the case study of the Objective Method, let’s imagine that the house we want to sell has a cadastral value of 100,000 euros, we bought it for 110,000 euros and now we want to sell it for 140,000 euros.
First, we will have to subtract the value for which we acquired the property (110,000 euros) from the value of the transfer (140,000 euros), thus obtaining the Capital Gain of the operation, in this case, 30,000 euros. We will then multiply the Capital Gain obtained (30,000 euros) by the percentage that the cadastral value of the land represents of the total cadastral value of the property (65%) to obtain the Taxable Base, i.e. 19,500 euros.
Now all that remains is to apply the Tax Rate established by the Town Council of Moraira (30%) to the Taxable Base obtained (19,500 euros) to give as a result the final Amount of Tax to be paid, in this case, 5,850 euros.
Important*
In the case studies described in this article, the Objective Method would be the most advantageous method for the taxpayer, however, this is not always the case. Everything will depend on the number of years that have passed between the acquisition of the property and its transfer, and the Capital Gain obtained from the operation.
Other new features introduced by the Royal Decree
In addition to the two methods that the taxpayer can choose between to calculate the tax, the 2021 Royal Decree also introduced various other new features:
- Only transactions in which there is an actual capital gain, i.e. where the transfer value is higher than the acquisition value, are subject to tax liquidation.
- Property transfers that take place in less than one year will be taxable, unlike under the previous regulations.
Calculating Capital Gains in Teulada-Moraira
To automatically calculate the Municipal Capital Gains Tax to be paid in Teulada-Moraira, we remind you that at Hispania Homes we have prepared an Excel Template that you can fill in with the details of your property to obtain the Municipal Capital Gains Tax that you would have to pay according to each of the available calculation methods.
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Furthermore, if you have any doubts about the calculation of the tax or need real estate advice of any kind, at Hispania Homes we are ready to help you in the management of your assets.
