In many municipalities, the time has come for the capital gains tax to be abolished. This tax, which is levied on the value of something, especially real estate, will receive a new tax treatment. Without going any further, the city of Alicante is the first city that is carrying out the refunds of this tax, according to a sentence of the Provincial Court. And right now, the central government is looking for a formula to avoid the flood of lawsuits filed in court.
Owners who sell their properties at a loss will not have to pay the municipal capital gains tax, according to the bill presented by the PP. It now remains to be seen what will happen to those who have paid this tax unduly, and many courts are now agreeing with them. Thanks to a bill presented by the PP in the Spanish Congress of Deputies that modifies the Ley Reguladora de Haciendas Locales, it will soon be effective.
A year of waiting
These modifications come in compliance with a ruling of the Constitutional Court (TC) of 11 May 2017 that declared several articles of the Tax on the Increase in Value of Urban Land - known as plusvalia municipal - null and void when properties are sold without making a profit.
These measures promoted by the Constitutional Court are a step forward, but what will happen with unduly collected taxes is still pending. Those affected could claim around 2,475 million euros from local councils for this concept, which means an average of 4,500 euros per affected citizen, according to sources at reclamador.es.
