The Plusvalia municipal tax is always on discussion between sellers and foreign buyers. It´s always a reason to negotiate the price in Majorca
¿What is the Plusvalía Municipal?
The plusvalía municipal is a tax about the increase in the values of urban land..
This payment must be in the event of transmission such as sale, inheritance.
¿Who must pay this tax?
The pasive subject or his representative.
In case of inheritance the passive subject is the person who receives the inheritance.
In case of sale the passive subject is the seller.
In case of foreign and non residents sellers the purchaser becomes the substitute for the taxable person, so it should be the buyer who enters on behalf of the selling party. The buyer is not considered as the taxable person but the substitute, so it is recommended that the buyer make a withholding to the seller for the amount of the PLUSVALIA MUNICIPAL in and thus assume the payment as a substitute.
¿What are the submission deadlines?
In case of sales or donation the term will be 30 business days after the donation.
In case of inheritance the therm will be 6 months and the passive subject could extend it 6 more months.
¿Where do you have to do the payment.?
Payment is made at the Townhouse. For more information about the plusvalia in Palma, here you have this link
portal to calculate.