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MUNICIPAL GOODWILL
2nd November 2021REAL ESTATE, NEXUS GROUP, INFORMA
What is the Municipal Capital Gain?
The tax on the Increase in Value of Urban Land, in its acronym IIVTNU, and commonly known as Municipal Capital Gain, levies the increase in value of urban land.
The municipalities will be in charge of collecting this tax.
The transmission of land (in which there is a building, or not) can be articulated in different ways, sale, donation or inheritance.
The capital gain assumes it.
The seller in the sales, The Grantee, in the donations, The heir or legatee in the inheritances, or bequests.
In clear terms, we can affirm that, if in the course of time that passes between the purchase of a home and its subsequent sale, there is an increase in the value of the land where it is built, this increase in value is perceived by local entities as a benefit for the seller, so they participate in it because they consider that they are worthy of such capital gain.
If you have bought a home in January 2010 for a value of € 100,000 and later we sell it in January 2017 for € 150,000.
We clearly observe how the property has experienced an increase in value of € 50,000, producing a profit for the seller and former owner.
info@nexusgrupo.com
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