Reductions in the Municipal Capital Gains Tax in Teulada-Moraira

Find out about the existing discounts on the Municipal Capital Gains Tax in Teulada-Moraira and the requirements you must meet to qualify for them.

The Increased Value of Urban Land (IIVTNU), also known as Municipal Capital Gains Tax, is a tax payable when the ownership of urban land is transferred. It is a tax that affects:

• Sales and purchases: the seller is responsible for paying the Plusvalia Municipal.
• Inheritances: the heir is responsible for paying the tax.
• Donations: the recipient of the donation is responsible for paying the Plusvalía Municipal.

The Plusvalía Municipal is a tax levied on the increase in value of urban land during the time it has been owned by a person.

important! The Plusvalia Municipal is not levied on the economic gain that an owner has obtained from the sale of his property, but on the increase in value that the land on which his property is located has undergone.

how much will I have to pay for the Plusvalia on my property in Teulada-Moraira?

To find out how much you will have to pay for the capital gain on your property, you can consult our article How to calculate the Municipal Capital Gain in Moraira. In it we explain, step by step, how to estimate this tax depending on the calculation method chosen. In addition, you can also use the Hispania Homes by Keller Williams Municipal Capital Gains Calculator to calculate this tax automatically.

Capital Gains Tax Rebates in Teulada-Moraira

However, the amount you will have to pay for the capital gains tax on your property in Teulada-Moraira may be subject to discounts that may reduce the final amount to be paid. Teulada Town Council establishes the following tax rebates:

90% rebate

Allowance on the Teulada-Moraira Municipal Capital Gains Tax for those transfers mortis causa in favour of descendants and ascendants of the first and second degree of consanguinity and the spouse.

95% rebate

Allowance in the Municipal Capital Gains Tax of Teulada-Moraira for those transfers mortis causa in favour of descendants and ascendants of the first and second degree of consanguinity and the spouse (same conditions as in the previous case), but on the habitual residence of the deceased.

important! To find out what you will have to pay for capital gains tax, taking into account the available allowances, you can use our capital gains calculator and apply the corresponding allowances to the resulting amount (Cuota Tributaria).

Deadlines and procedure for applying for the allowances

The deadline for self-assessment of the Municipal Capital Gains Tax in Teulada-Moraira is 30 working days for transfers of property by sale or donation, and 6 months for transfers of property by inheritance. In the latter case, an extension of up to 1 year may be requested.

When submitting the self-assessment to the Town Hall, you must include an express request for the rebate you wish to apply for and the documents proving that you meet the established requirements. For inheritance tax relief, it is usual to have to provide the following documentation:

• Death Certificate
• Will or Declaration of Heirs
• Proof of the total value of the inheritance (Inheritance tax form 660)
• Deed of the inherited property

In the case of claiming the 95% discount for inheriting a primary residence in Teulada-Moraira, it will also be necessary to provide the Census Certificate of the deceased person.

Cases in which you will not have to pay the Plusvalia (capital gains tax)

Remember that there are a number of situations in which, despite the fact that you are transferring a property, you will not have to pay the Plusvalia Municipal tax.

When there is no increase in value

If at the time of transferring your property you have not experienced a capital gain, you will not have to pay Plusvalia. To prove this, you will have to present the documents that prove the loss, for example, the deeds of sale.

When rural land is transferred

Capital gains tax only applies to urban land. If the property is on rural land, you do not have to pay this tax.

When the Town Council establishes certain exemptions

Teulada-Moraira Town Council establishes a series of exemptions in its municipal regulations, i.e. specific cases in which the tax does not have to be paid:

• Transmissions due to the constitution of easements.
• Properties located in historic-artistic sites or declared of cultural interest if they have been restored.
• Transfers in which the taxpayer is a public administration.
• The Red Cross or other legally exempt entities.

When there is a dation in payment to cancel a mortgage

In cases where the property is handed over to the bank to cancel a mortgage debt, the law protects the debtor and exempts the payment of the municipal capital gains tax.

Who manages the Plusvalia Municipal in Moraira?

As it is a local tax, the Plusvalia Municipal in Teulada-Moraira is the responsibility of the Town Hall. However, in 1990 the Alicante Provincial Council created SUMA, an autonomous body responsible for managing and collecting municipal taxes on behalf of the town councils in the province that request it.

In other words, the Municipal Capital Gains Tax in Teulada-Moraira is currently managed by Suma Gestión Tributaria.

*Remember that at Hispania Homes by Keller Williams we provide you with our own Municipal Capital Gains Calculator, a tool designed in accordance with the municipal regulations of Teulada-Moraira Town Hall and updated annually so that you can automatically estimate what you will have to pay for Capital Gains.

In addition, in our office we are at your disposal to answer any questions you may have regarding the self-assessment of this tax, as well as any other query related to the sale of your home.

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