Municipal plusvalía is a local tax on the increase in value of urban land. It is paid to the town hall and should always be checked separately from Form 210 and the 3% withholding.
It is a municipal tax
Plusvalía (IIVTNU) is a local tax linked to the increase in value of urban land. It is collected by the town hall, not the Spanish Tax Agency, and is separate from non-resident capital gains tax.
Not the same as Form 210
Plusvalía is independent from Form 210 (capital gains) and from Form 211 (3% withholding). The same sale can trigger several different obligations at the same time.
Generally a seller-side tax
In an onerous transfer, the taxpayer is the seller. When the seller is a non-resident individual, the buyer can be treated as the substitute taxpayer (sustituto del contribuyente).
The 2021 reform changed the calculation
Royal Decree-Law 26/2021 adapted plusvalía to the Constitutional Court's case law. There may be no taxable event when there is no increase in land value between purchase and sale, and the calculation can be done using either the objective method or the real increase, whichever is lower.
Plusvalía is no longer automatic in the way many people assume — but the position must be reviewed against the actual documents and the town hall's criteria. A sale at a loss does not automatically eliminate every obligation.
Form 210 (sale)
National capital gains tax for the non-resident seller. 19% IRNR on the gain.
Form 211 (3% withholding)
Buyer-side filing of the 3% withholding when buying from a non-resident.
Municipal plusvalía
Local tax on the increase in urban land value, paid to the town hall.
Plusvalía is not included in our buyer's Property Cost Estimator. It is a seller-side tax issue, although in non-resident seller situations it may need contractual coordination between the parties.
Want plusvalía reviewed before completion?
We review plusvalía together with the 3% withholding and Form 210 so the full sale tax position is consistent.