Bill would change how the municipal land value tax is calculated

Automatic summary, not yet reviewed

1. The bill would make the municipal land value tax not apply when the taxpayer proves the land did not gain value, by filing a declaration of non-taxability and providing evidence.
2. It would replace the current annual percentages with maximum coefficients set by the number of years between buying and selling the land. These would be updated yearly, and city councils could not exceed them.
3. City councils would have four months to adapt their tax ordinances to the new rule. Until then, the law itself would apply, unless the base calculated under the old ordinance is lower.
4. The bill would also exempt from personal income taxincome tax The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings. the amounts paid to victims of flight GWI9525, add Cantabria and Madrid to the mandatory self-assessment regime for the Inheritance and Gift Tax, and treat certain similar foreign nonprofit entities like Spanish ones.

Who it affects

• People who sell or inherit an apartment or land: They could avoid paying the municipal land value tax if they prove there was no gain in value.
• City councils: They would have to adapt their tax ordinances within four months and could verify non-taxability declarations.
• Families of the victims of flight GWI9525: Amounts received as civil liability payments or voluntary aid would be exempt from personal income tax.
• Taxpayers in Cantabria and Madrid: They would have to file the Inheritance and Gift Tax through mandatory self-assessment.
• Foreign nonprofit entities: Some would be treated like Spanish nonprofits for tax purposes.

Words worth knowing

Plusvalía municipal (municipal land value tax)

A tax paid to a city council when land or an apartment is transferred and its value has gone up. Its official name is Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana.

Base imponible (tax base)

The amount on which the tax is calculated, before applying the rate.

Autoliquidación (self-assessment)

A process where the taxpayer calculates and pays the tax themselves, instead of waiting for the tax authority to bill them.

Coeficiente (coefficient)

A percentage applied to the value of the land to work out how much it has increased.

Ordenanza fiscal (tax ordinance)

A rule approved by each city council to regulate the taxes it manages in its municipality.

income tax

The personal income tax (IRPF in Spain): what people pay on what they earn from work, business or savings.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries