Recover Municipal Capital Gain
The IIVTNU (Tax on the Increase in the Value of Urban Land or Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana) is a direct and optional municipal tax levied on the increase in the value of urban land revealed at the time of transmission.
The normative that regulates it is the one established in the Real Decreto Legislativo 2/2004 of March 5th, by which is approved the Texto Refundido de la Ley Reguladora de Haciendas Locales.
The Constitutional Court has confirmed that «In no case can a tribute be established taking into consideration acts or events that are not exponents of a real or potential wealth, or what is the same, that the benefit of the citizen is nonexistent, virtual or fictitious »
Who can claim?
Claiming can be made by the subjects that possess an urban property and have paid the capital gain in any of the following situations:
property or land sell
property acquisition by heritage or donation
non physical residents in Spain that has obtained a property or land
What are the deadlines to claim?
There are two deadlines. First, in the case of giving auto liquidation of the tax by selling the property the time limit is in 4 years. The second case, if the liquidation has occurred, the subject will have a month term since it takes place.
The property must have been sold in the last four years for a price equal or lower than the purchase price. Also, it is necessary that you have paid the tax before the claim
Steps to follow for the claim:
The claim for the municipal capital gain is filed against the corresponding municipality. In this way, a request for rectification and refund of undue income must be submitted. To do this, we must use the documentation that proves the payment of the tax. In relation to this documentation, it is essential to have deeds of purchase and sale of housing and letters of payment of capital gains tax. Also have a report that proves that there has been no increase in the value of the land.
In case the municipality refuses to grant what is claimed, the second step would be to go to the corresponding Administrative Court to file an appeal. If you use this route also without getting results, you can go to the administrative litigation courts to claim the refund of the amount through the courts.
We hope that this information has helped you and if you need any clarification about it, do not hesitate to contact us.
