Impuesto sobre el Incremento del Valor de los Terrenos. This is a local Spanish tax which is charged on the capital gains on the sale of property or land.

Under the law it is the seller who must pay this tax (except in circumstances where an agreement has been made to the contrary, something which must be recorded in the private sales contract aswell as the title deeds).

The amount calculated for this tax depends on the location within the municipality, the number of years since the property or land was purchased and the rise in value since then.

The scale used by the town hall to calculate this tax is based on certain parameters fixed by law.

Number of inhabitants = Percentage

up to 5000 = 26 %
from 5001 to 20,000 = 27 %
from 20,001 to 50,000 = 28 %
from 50,001 to 100,000 = 29 %
more than 100,000 = 30 %

Related:

• Spanish property taxes
• Yearly taxes in Spain
• Extra expenses when buying property in Spain
  

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