The sale of homes could be complicated this 2023 But it will not be easy for sellers either, who will pay more than municipal capital gains tax this year.
The capital gains tax is a tax that the seller of a property must pay at the town hall where the property is located. Its official name is Tax on the Increase in Value of Urban Land (IIVTNU) and it really taxes the increase in the value of urban land where the property is located at the time it is transferred. Moreover, in the event that only urban land is sold, without ownership, this tax would also be paid.
Latest changes in capital gains tax
In 2021 several modifications were introduced, among which are that, in the event that a real profit is not obtained from the sale, this tax would stop being paid and that capital gains arose in less than a year did become taxable. But those changes are not the last. In the General State Budget for 2023, the Government has included an increase in the coefficients of municipal capital gains or, what is the same, has warned of taxation for the capital gain obtained when selling a home built on urban land Or just the land.
How is the capital gains tax fee calculated now?
When calculating the tax base, the taxpayer has two options: through the calculation of the real capital gain or the objective system.
Real capital gain: it is calculated excessively in the difference between the value at which the land has been acquired (not for construction) and the value for which it is sold, and then it is multiplied by the type of tax that the Municipal Council has set. in which it is found, which can never exceed 30%, the reduction coefficient that the Government sets in the Budgets and has changed this year. The result that it gives is also multiplied by the type of tax that the City Council has set.
We give the example of a house purchased in 2014 for 180,000 euros and a sale price of 220,000 euros in which, at the date of sale, the cadastral value is 100,000 euros (60% land and 40% construction). When making the calculation according to the real capital gain, we should subtract 220,000 minus 180,000 euros to see the profit that the seller makes from the sale, that is, 40,000 euros. Later, it would be necessary to calculate 60% of the floor of those profits, which would be 24,000 euros, and we would already have the tax base. Finally, those 24,000 euros would have to be multiplied by the City Council tax which, if it were a maximum of 30%, the seller would pay in this case 7,200 euros.
According to the objective of the system, more favourable, if the property has a cadastral value of 100,000 euros and eight years have elapsed since its purchase, it would be necessary to multiply 60,000 euros (60% of the land value) by the capital gain coefficient of 8 years which in this case has gone from being 0.1 in 2022 to 0.15 in 2023), which means that in this way the seller would pay 2,700 euros of municipal capital gains tax.
If we do the same accounts with the coefficient that there was last year, the amount would be reduced to 1,800 euros. Of course, in the event that this year the house in question was 9 years old, it would pay tax of 2,160 euros.
How do the coefficients change to calculate surplus value?
By 2023, these coefficients range between 0.45 (if the property was acquired 20 years ago) and 0.09 (11, 12, 13 or 14 years ago). In some cases, the coefficients have been corrected upwards (antiques between 5 and 13 years). In others, downward.