Municipal capital gains tax is the Tax on the Increase in Value of Urban Land (IIVTNU). Under the common regime, it is a municipal potestative tax that applies, where relevant, to the increase in value of urban land revealed when ownership or certain rights in rem are transferred. It does not directly tax the value of the building.

In a sale for consideration, the general rule under the common regime identifies the transferor, i.e. the seller, as the taxpayer. In tuituitous transfers, such as a gift, the taxpayer is the person who acquires the property. Regional regulations must also be checked where the transaction relates to Navarre or a historic territory of the País Vasco.

In a standard-regime transfer for consideration, where the taxpayer is a non-resident individual in España, the acquirer acts as the taxpayer's substitute for IIVTNU purposes. This rule differs from the 3% withholding provided for under IRNR for certain property sales by non-residents.

It is not enough to make an informal comparison between the total purchase and sale prices. Article 104.5 allows the absence of an increase in land value to be demonstrated by applying its specific rules. To do so, the transfer must be declared and the acquisition and transfer documentation submitted; for properties with land and buildings, the proportion of the land's cadastral value to the total cadastral value is used.

Under the objective method in the standard regime, the starting point is generally the land value assigned to the property for IBI purposes on the tax accrual date. Therefore, the cadastral value corresponding to the land must be used, rather than the property's total cadastral value, except where special legal rules apply.

Under the standard regime, there is an objective method based on the land value and the municipal coefficient applicable to the period during which the gain accrued. In addition, if the actual increase in land value demonstrated in accordance with the law is lower than the objective tax base, the taxpayer may request that this actual increase be used as the tax base. The rate approved by the local council is then applied.

There is no single national rate. Under the standard regime, each local council sets its rate in its tax ordinance, subject to a national maximum of 30%. The effective rate, applicable coefficients and tax reliefs must be checked in the ordinance of the relevant municipality and for the specific date of the transfer.

Under the standard regime, Article 110 of the TRLRHL establishes 30 business days for inter vivos transactions and six months, extendable to one year at the taxpayer's request, for transfers on death. The municipal ordinance determines the declaration or self-assessment system, the submission channel, required documentation and practical payment method.

No. The national framework sets limits and common rules for standard-regime municipalities, but each local council may approve its coefficients within the legal maximums, its tax rate within the national limit, certain tax reliefs and its procedure. Navarre and the historic territories of the País Vasco also have their own regional tax legislation.

No. IIVTNU is a municipal tax linked to increases in the value of urban land. The seller's capital gain is assessed separately under IRPF or IRNR, depending on the transferor's tax residence and circumstances. A sale may require both taxes to be reviewed independently.