The capital gain is the Tax on the Increase in Value of Urban Land. It’s a municipal tribute that must be paid, unless some exemption assumption is applicable, provided that there is a transfer of property title of that land, either inter vivos, by sale or donation, or mortis causa, that is, by inheritance.
Once the amount has been calculated and it is clear who is responsible for paying it, it is time to make it effective and for this there are different routes and variations according to the beneficiary city council of the tribute. In the case of large amounts, it is important to know that there are options that may interest you, such as the fractional payment.
The capital gain in Madrid
As we have said, this is a municipal tax, which will collect the town hall where the land is located urban area that generates it, regardless of your usual place of residence. If you live in Madrid capital, but you sell a house in Las Rozas, any management related to capital gains will have to do with this second municipality.
As for the term you have to pay, as a general rule, in Madrid it is 30 business days in case of purchase or sale and six months if it is an acquisition by inheritance. In this case, they will start counting from the date of death and, if you want, you can request an extension of another six months, as long as it is requested in writing before the end of the first term.
As detailed by the Madrid city council (@MADRID), you have several options to pay the tax. Any of them will require that, first of all, you calculate the amount to be paid and generate the corresponding self-assessment form.
To do this, you will have to access the electronic headquarters of the townhall and go to the link ‘Apply online’. Here you must provide a series of basic data that affect capital gains, including the date on which the property was transferred, the cadastral value of the land and the tax period, which are the years that have elapsed from the last acquisition to the sale or assignment. You must also detail the expected date of payment.
If it is easier for you, you can also make an appointment to be attended in the municipal offices themselves. In some cases, goodwill is complicated. It may be that in a very old property there is no record of its cadastral value or that, in the cadastre, there is an error and the value that appears does not correspond to that of the transferred property.
Perhaps you are not sure whether or not it is your responsibility to make the payment, for example in an inheritance in which there are several heirs. Perhaps the capital gain is really high and you need to divide the payment. In these cases, to resolve any issue, it is best to go to one of the Comprehensive Taxpayer Attention Offices (OAIC), also requesting an appointment.
Once you have the payment document, to proceed with it each city council offers different routes. Most admit to pay the amount directly at their citizen service and tax management offices.
It is also common to pay through a collaborating bank and some municipalities also offer the option of making the payment via telematics, through the municipal website. If you make the payment through a bank, the entity will be responsible for sending the corresponding copy to the managing municipal office, that is, you will not have to present it.
How does the tax work in Barcelona?
The payment of capital gains in Barcelona it is done in a very similar way. The terms to do so are the same: 30 days in case of inter vivos transmission and six months with the possibility of extension in inheritance. As in Madrid, it is important to confirm who is responsible for paying it and the possible exemptions and subsidies, because there may be differences to take into account.
To perform the calculation and obtain the self-assessment document, the Barcelona city council offers four possible routes:
- At the time of the change of ownership of the property (signature of the deed), it is the notary himself who provides the corresponding form so that you can make the payment directly.
- Obtained online through the municipal electronic headquarters.
- Request through any of the citizen service offices of each district.
- Petition through free phone 010 (or 931 537 010 if calling from outside the metropolitan area).
Once you have obtained the document, you can pay the amount by contacting one of the collaborating banking entities or through the Web of Institut Municipal d’Hisenda, in the link ‘Payment by credit card or current account charge’.
Once the procedure has been completed, it is necessary to send a simple copy of writing object of transmission to the aforementioned body, by mail or in person. If it suits you better, it can also be delivered to one of the citizen service offices.