When a property changes hands in Spain, a local tax called plusvalía is due. Here’s what it is, who pays it, and what buyers need to know.
When I completed on my Alicante property in July 2025, one of the costs the sellers had to settle was plusvalía. I didn’t pay it — but understanding what it is and who’s responsible for it is important for any buyer, because in some circumstances it can become your problem.
What is Plusvalía?
Plusvalía municipal — officially the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU) — is a local tax charged on the increase in the cadastral value of urban land when a property is sold, inherited, or gifted.
It is charged by the local ayuntamiento (town hall) and is separate from the national capital gains tax (IRPF) that sellers also pay on any profit from the sale.
Who Pays Plusvalía?
In a standard sale, plusvalía is paid by the seller. It is their tax liability, not the buyer’s.
However — and this matters — if the seller fails to pay it, the liability can attach to the property rather than the person. This means an unpaid plusvalía can become a registered charge against the property that the new owner inherits.
This is one of the reasons a clean nota simple check before completion is essential. Your gestor should confirm no outstanding plusvalía is registered against the property before you sign anything.
How is it Calculated?
Plusvalía is calculated based on:
- The cadastral value of the land (not the building)
- The number of years the seller has owned the property
- A coefficient set by the local ayuntamiento
Following a 2021 Spanish Supreme Court ruling, sellers can now choose between two calculation methods — the traditional method based on cadastral value, or an alternative method based on actual gain — and pay whichever produces the lower bill. If the property has decreased in value, no plusvalía is due.
In practice the amount varies considerably depending on location, cadastral value, and length of ownership. For a modest apartment held for several years it might be a few hundred euros. For a long-held property in a high-value area it can be significantly more.
What Buyers Need to Know
As a buyer you don’t pay plusvalía — but you should:
- Confirm the seller is aware of and prepared to pay it at completion
- Ensure your gestor checks for any outstanding plusvalía registered as a charge on the property
- Be aware that in some negotiated transactions, particularly distressed sales, sellers may try to pass the cost to the buyer — this should be clearly stated in the arras contract if agreed
Plusvalía and Non-Resident Sellers
If the seller is a non-resident in Spain, the buyer is legally required to withhold 3% of the purchase price and pay it to the tax authority via Modelo 211. This covers the seller’s potential capital gains tax — but plusvalía is a separate obligation that the seller still needs to settle directly with the ayuntamiento.
Two separate taxes, two separate obligations. Your gestor handles the Modelo 211 withholding. The seller is responsible for plusvalía.
The Bottom Line
Plusvalía is the seller’s tax, not the buyer’s — but an unpaid one can become your problem if it’s registered as a charge on the property. Check the nota simple, make sure your gestor is across it, and it won’t catch you out.
Want to understand all the taxes involved in a Spanish property purchase? The Real Costs of Buying Property in Alicante breaks down every cost with real figures. And What is a Nota Simple? explains how to check for registered charges before you commit.