News: Supreme Court Rules ‘Plusvalia’ Calculation “Impossible to Apply”
What the Supreme Court Ruling Means
In simple terms, the Court ruled that the articles in the regional regulation of the Plusvalia tax were unconstitutional. This is mainly because tax has been applied to increases in property values, without allowing for situations where property may not have had any increase in value or may have even lost value.
In addition several of the Regional Supreme Courts, including those of Madrid, Catalonia, Valencia, and recently Andalucia, have ruled that lack of profit denotes lack of increase in property value. Therefore, because the tax is levied on increased values it is not applicable when there is no profit.
The bottom line is that if you have sold property and settled a payment for Plusvalia Tax, you may now be entitled to a refund. If you feel you are eligible to make a claim, we urge you to contact us for advice on how to exercise your right to a refund.