Municipal plusvalue: the end of an era

On 26 October, a brief informative note (No. 99/2021) was published on the website of the Spanish Constitutional Court, in which the operative part of the ruling on the unconstitutionality issue number 4433-2020 was brought forward. Said note DECLARES THE UNCONSTITUTIONALITY AND NULLITY OF ARTICLES 107.1 SECOND PARAGRAPH, 107.2 A) AND 107.4 OF THE REFUNDED TEXT OF THE LAW OF LOCAL TREASURY.

In said note, parts of article 107 of Royal Legislative Decree 2/2004, of 5 March, approving the revised text of the Law Regulating Local Treasuries, which regulates the method of calculating the popularly known MUNICIPAL PLUSVALUE, are declared unconstitutional.

In other words, the ruling states that the objective method of determining the taxable base of the Tax on the Increase in the Value of Urban Land is UNCONSTITUTIONAL, as it assumes that there has always been an increase in the value of the land during the tax period.

It is very likely that this ruling will open up the possibility that rectification of self-assessments of the tax filed in the last four years can be requested.

The full content of the sentence will be available in the coming days, together with the individual opinions of the intervening judges.

Ventura Garcés will keep you informed of any new developments in this regard.


*We attach the information note No. 99/2021 of the Constitutional Court in Spanish.