We explain how to calculate the Municipal Capital Gains Tax in Benitachell step by step and we offer you a calculator so that you can do the calculation automatically.
When we want to sell a property, it is important that we bear in mind the costs involved in the operation from the very beginning. This is especially relevant if our idea is to sell in order to buy a new home, as this information will help us to know the real amount of money we will have available to purchase our new property.
One of these costs that comes into play is the Municipal Capital Gains Tax, a tax levied by local councils on the increase in value of urban land during the time we have owned the property.
In this article, we will focus on the Municipal Capital Gains Tax in Benitachell to tell you how much you will have to pay for this tax and the new regulatory modifications that directly affect it.
How to calculate the Municipal Capital Gains Tax to be paid in Benitachell
Below we will detail the two methods currently available for calculating the Municipal Capital Gains Tax in Benitachell.
However, you can also do this calculation automatically using the Municipal Capital Gains in Benitachell Calculator, a calculator with which you can automatically find out what you will have to pay for this tax depending on the calculation method chosen: Objective Method or Actual Capital Gains.
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Municipal Capital Gains Tax for Benitachell
Access the Excel template with which you can automatically calculate the Municipal Capital Gains Tax for your property in Benitachell
New regulations governing Capital Gains Tax
After the Constitutional Court declared unconstitutional and null the part of the Revised Text of the Law of Local Treasuries in charge of regulating the calculation of the Municipal Capital Gains Tax, the Council of Ministers approved Royal Decree-Law 26/2021, of 8 November, introducing two different systems for the calculation of this tax. Taxpayers may choose the most beneficial of the two.
Capital Gains Tax in Benitachell: Objective Method
The first is the Objective Method, a system that takes into account the years that elapsed between the acquisition of the property and its subsequent sale, bequeathment or donation.
1st Calculate the Taxable Base
The first thing we will have to do to calculate the Municipal Capital Gains Tax to be paid in Benitachell under the Objective Method is to apply to the cadastral value of the land, the multiplication coefficient stipulated for the number of years that we have been in possession of the property.
2nd Apply the Tax Rate
Once we’ve applied the multiplication coefficient, we will have to apply the stipulated Tax Rate to the Taxable Base we have obtained. In this case, the Tax Rate stipulated by Benitachell Council is 23%.
Example of Municipal Capital Gains Tax in Benitachell with the Objective Method
To complete our understanding of how to calculate the Municipal Capital Gains Tax in Benitachell using the Objective Method, let’s consider an example.
Let us imagine that we bought a property 8 years ago with a cadastral land value of 80,000 euros. According to Benitachell Council’s chart, the multiplication coefficient for that amount of time is 0.10. This means that to calculate the Taxable Base we will have to multiply the 80,000 euros (the value of the land) by 0.10 (the multiplication coefficient), giving a result of 8,000 euros.
Next, we will have to apply the Tax Rate to the Taxable Base. In other words, we will have to apply the 23% Tax Rate set by Benitachell Council to the 8,000 euros Taxable Base, resulting in a final Tax Amount of 1,840 euros.
Capital Gains Tax in Benitachell: Actual Capital Gains Method
The second method that we can use to calculate the Municipal Capital Gains Tax in Benitachell is the Actual Capital Gains Method, a system that takes into account the real capital gain obtained from our real estate transaction. To learn what we will have to pay if we choose this method we will have to follow the following steps:
1st Calculate the Capital Gain
First, we start by calculating the capital gain this system is based on. To do this, we subtract the value at which we are selling, donating or bequeathing our property from the value at which we originally acquired the property.
2nd Calculate the Taxable Base
Next, we multiply the Capital Gain obtained in the previous step by the percentage that the cadastral value of the land represents of the total cadastral value of the property. This will give us as a result the Taxable Base. The Cadastral value is a value that we can find on our last IBI (property tax) receipt.
3rd Apply the Tax Rate
Finally, all that remains is to apply the Tax Rate stipulated by Benitachell Council to the Taxable Base resulting from the previous step. The Tax Rate to be applied to the Municipal Capital Gains Tax in Benitachell is 23%.
Example of Municipal Capital Gains Tax in Benitachell with the Actual Capital Gains Method
To better understand this other method of calculation, we will use the data of the transaction from the previous example to calculate what we would have to pay if we opted for the Actual Capital Gain method.
Let’s imagine we bought the house with a cadastral value of 80,000 euros 8 years ago for 100,000 euros, and we are going to sell it for 120,000 euros. In this case, the Actual Capital Gain of our sale would be 20,000 euros.
If we take into account that the percentage that the cadastral value of the land represents in our sale is 60%, to continue with our example we will have to multiply the 20,000 euros of the Capital Gain obtained by this 60%. This will give us a Taxable Base of 12,000 euros.
Finally, we would have to apply to the Taxable Base obtained in the previous step, the Tax Rate established by the Benitachell Town Hall, in other words, 12,000 euros times 23%. This would give us a final Tax Amount of 2,760 euros.
Conclusions on Capital Gains Tax
As you will have noticed, in the example we have used in this post it would be in the taxpayer’s best interests to use the Objective Method to calculate the Municipal Capital Gains Tax in Benitachell as that would be the cheaper system. However, that is not always the case. It will all depend on the capital gains obtained and the time that has passed between the acquisition and the transfer.
In our blog, you can also find articles on this topic where we explain how to calculate the Municipal Capital Gains Tax to be paid in Teulada-Moraira or how to calculate the Municipal Capital Gains Tax to be paid in Jávea.
*If you would rather do the calculation automatically, we remind you that you have at your disposal the Municipal Capital Gains in Benitachell Calculator, an Excel template with which you can calculate what you will have to pay for this tax instantly.