What is “Plusvalía”?

The capital gains tax (“Plusvalia”) is a municipal tax that becomes due when a property changes hands. It is calculated from the cadastral value of the land and taxes the increase in value since the last change in the land register. For this reason, the tax on Mallorca is rather low. The amount of the capital gains tax is determined by the respective municipality. As a rule, the current tax rates of the relevant municipalities can be requested via their websites.

In the event of a property sale, the seller must pay the capital gains tax.

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