Lawyers claiming municipal capital gains
Do you want to start claiming the amount of your capital gain from the local council?
Do you want to know what your chances are of getting a refund of the tax unduly paid?
Do you need help to carry out this procedure?
OUR TEAM OF LAWYERS SPECIALISED IN MUNICIPAL CAPITAL GAINS CLAIMS WILL TAKE YOUR CASE!
With the new ruling handed down by the Constitutional Court on the Ley Reguladora de las Haciendas Locales, the nullity of the capital gains tax is presented to local councils on the transfer of property due to economic differences in the value of the property, opening up the possibility of initiating a claim for the municipal capital gains tax unduly paid.
The Constitutional Court has considered that the Municipal Capital Gains Tax, also known as Increment in the Value of Urban Land, violates the principles of economic capacity and non-confiscation in the way it is calculated.
G.Elías y Muñoz Abogados, works every day providing the commitment and dedication that each client deserves, therefore, we invite you to get to know our law firm and advise you on the possibility of recovering your money unduly paid in the municipal capital gains tax.
Guide to information on the Municipal Capital Gains Tax claim prepared by G.Elias y Muñoz Abogados.
Who can claim a refund of the Plusvalia Municipal?
The seller of the property can claim a refund of the tax unduly paid to the City Council based on the unconstitutional precept of the Tax on the Increase in Value of Urban Land, also commonly known as municipal capital gains tax.
What infringes the Municipal Capital Gains Tax or Increase in the Value of Urban Land?
The Constitutional Court considers that the formula used by the local councils to calculate this tax is unconstitutional, as it is not a percentage of the gain or loss obtained from the transfer, but of the cadastral value of the land in question.
Likewise, the Constitutional Court considers that this tax infringes the principle of economic capacity and non-confiscation.
When you CAN claim
They will be able to claim a refund of the Municipal Capital Gains Tax...
- Owners who have self-assessed the tax that is not yet time-barred (four years from the day following the end of the voluntary filing and payment period).
- Owners who have paid the tax less than one month ago.
- Taxes already paid and pending appeal.
- Taxes that have been settled and are pending appeal.
- Open procedures in which the council has proposed a new settlement.
- Resolved operations with the possibility of lodging an appeal (the expert lawyer will indicate the options for lodging an appeal at the appointment).
When municipal capital gains tax can NOT be claimed back
- Transfer of property assessed at the same value as the sale price.
- If one month or more has passed when the taxpayers declare the tax and the City Council notifies the liquidation.
How to claim a refund of municipal capital gains tax
Contact our Law Firm. With a specialist lawyer it will be easier to receive 100% of the liquidation, taking the procedure to trial in claiming the amount, if the situation requires it.
Which articles are declared unconstitutional?
The articles that give rise to the possibility of claiming municipal capital gains tax are articles 107.1 second paragraph, 107.2.a) and 107.4 of Royal Legislative Decree 2/2004, of 5 March, which approves the revised text of the Regulatory Law of Local Treasuries and whose wording is as follows:
“…
2. For the purposes of determining the taxable base, account shall be taken of the value of the land at the time of accrual, in accordance with the provisions of paragraphs 2 and 3 of this Article, and the corresponding percentage in accordance with the provisions of paragraph 4 of this Article.
3. The value of the land at the time of accrual shall be determined in accordance with the following rules:
a) In transfers of land, the value of the land at the time of accrual shall be that determined at that time for the purposes of Real Estate Tax.
However, when this value is the result of a valuation report that does not reflect planning modifications approved after the approval of the aforementioned report, this tax may be provisionally settled in accordance with that value. In these cases, the definitive settlement will apply the value of the land once it has been obtained in accordance with the collective valuation procedures that are carried out, referring to the date of accrual. When this date does not coincide with the effective date of the new cadastral values, these will be corrected by applying the corresponding updating coefficients established for this purpose in the General State Budget Laws.
When the land, although urban in nature or forming part of a property with special characteristics, at the time of accrual of the tax, does not have a determined cadastral value at that time, the local council may carry out the settlement when the said cadastral value is determined, referring this value to the time of accrual.
4. On the value of the land at the time of accrual, derived from the provisions of paragraphs 2 and 3 above, the annual percentage to be determined by each local council shall be applied, without it being able to exceed the following limits:
a) Period of one to five years: 3.7.
b) Period of up to 10 years: 3.5.
c) Period of up to 15 years: 3.2.
d) Period up to 20 years: 3.
In order to determine the percentage, the following rules shall be applied:
1º The increase in value of each operation subject to tax shall be determined in accordance with the annual percentage fixed by the town council for the period comprising the number of years over which the increase in value has become apparent.
2ºThe percentage to be applied to the value of the land at the time of accrual shall be the result of multiplying the annual percentage applicable to each specific case by the number of years over which the increase in value has become apparent.
3º In order to determine the annual percentage applicable to each specific operation in accordance with rule 1 and to determine the number of years by which this annual percentage is to be multiplied in accordance with rule 2.a, only the full years making up the period during which the increase in value has become apparent shall be considered, and fractions of years of this period may not be considered for these purposes.
The annual percentages set out in this section may be modified by the General State Budget Laws".
What to do?
If you do not know what to do in this situation, make an appointment through our telephone service or by email to study your case and offer you personalised advice and our team of lawyers will help you.
What are the fees for the Municipal Capital Gain claim?
Our fees will consist of a small fixed amount and a variable amount of 12% of the amounts that could be obtained for the return of the municipal capital gain.
G. Elías y Muñoz Abogados will take care of all the paperwork.
Do you want more information with no obligation?
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