01 The Supreme Court judgment on municipal capital gains tax
The tax on the increase in the value of urban land, better known in Spain as plusvalia municipal, is a direct tax arising when ownership of a property is transferred.
Until 11 May 2017, when the Constitutional Court gave judgment on the council capital gains tax, the amount of that tax was worked out from the property's cadastral value rather than its real value. That meant that on a good many occasions taxpayers had to pay it even where the property had been transferred for less than it was bought for: a financial loss that looked entirely unfair.
That was also what the Constitutional Court found in its judgment of May 2017. Since then, transfers made at values below the purchase price have been exempt from that municipal tax. To be able to claim it back lawfully, however, it has to have been paid first. Do you need to claim back municipal capital gains tax? At Escalera & Tuset we put all our experience and all our knowledge at your disposal to help you through a complex process.
02 How do you claim back municipal capital gains tax?
As we said above, the basic requirement for claiming municipal capital gains tax back is to have paid it to the relevant council. Once that is done, Escalera & Tuset brings an administrative claim to the council on your behalf seeking a refund of the amount paid plus the late payment interest provided for in article 26 of the General Tax Act. There are two possible outcomes: the council decides in your favour, or it does not.
In the latter case, we bring an appeal to the administrative courts. We look at whether you can obtain a refund of the capital gains tax in the light of the Constitutional Court judgments. All we need are documents such as the capital gains tax assessment form, the deed by which the property was acquired, the deed by which it was transferred and any valuation documents. Those are the tools we use to argue your claim.
It is a judgment that calls for speed. Those affected by paying the tax have four years from the assessment to claim a refund. That is why Escalera & Tuset recommends acting as soon as possible. Administrative and legal deadlines can drag. We have to move quickly to obtain the refund you deserve. Trust the professionals at Escalera & Tuset. We are experts in citizens' and consumers' rights.
03 We obtain refunds of municipal capital gains tax
Escalera & Tuset has an area specialising in protecting citizens and consumers against the actions of both public authorities and private bodies. We work from our deep knowledge of tax law to make a diagnosis and take the right steps in the shortest time and as effectively as possible. Our experience in capital gains tax claims speaks for us.
The Supreme Court judgment on municipal capital gains tax requires local authorities to refund the amounts collected through the tax on the increase in the value of urban land. Get in touch and take up a free consultation with no obligation of any kind. We will look at your documents and your particular case to establish whether or not you have the right to a refund of the municipal capital gains tax. Trust the specialist professionals at Escalera & Tuset.
If you need lawyers in Madrid to advise you, Escalera & Tuset is the answer. If you need lawyers who can defend you, Escalera & Tuset is the answer. If you need information, Escalera & Tuset is the answer. We are here purely to help you in the way you need. Get in touch now.
