The plusvalía municipal is the tax that causes the most alarm at completion, and almost always for the same reason: the seller finds out it exists three days before going to the notary. What matters is that since 2021 there are two legal ways of calculating it and you may keep whichever comes out cheaper. The gap between the two can run into thousands of euros. Work it out yourself below.
Plusvalía municipal calculator (IIVTNU)
Compare the objective method and the real method and keep the more favourable one.
Please note: this calculator is an indicative estimate and is not binding on the authorities. The final assessment is made by the town hall using the rateable land value shown on the IBI bill for the year of the transfer and the figures in the deeds. The default rate (30%) is the one applied by Alicante town hall; if your property is in another municipality, replace it with the rate in its own tax ordinance. Reliefs are not included. Amounts are shown in Spanish format: 1.234,56 €.
What it actually is and who pays it
Its full name is tax on the increase in value of urban land (IIVTNU). It does not tax the house: it taxes the rise in value of the land it stands on, from acquisition to transfer, capped at twenty years. That is why the first figure you need is not the sale price but the share of your rateable value that corresponds to the land, which is itemised on the IBI council tax bill.
In a sale the seller pays. In an inheritance or a gift, it is paid by whoever receives the property. And there is a detail that surprises many foreign buyers: if the seller is an individual who is not resident in Spain, the buyer becomes the substitute taxpayer and is answerable to the town hall for the tax. Clauses in the deed along the lines of "the buyer bears all costs" are valid between the parties, but not against the tax authority.
The two methods and the right to choose
Constitutional Court ruling 182/2021, of 26 October, struck down the previous calculation because it always presumed an increase in value, whether there had been a gain or not. Royal Decree-Law 26/2021 rebuilt the tax with two methods and, crucially, with the taxpayer's right to pick whichever is more favourable:
- Objective method. Rateable land value for the year of the transfer × the coefficient for the years of ownership = taxable base. The municipal rate is then applied to that base.
- Real method, or direct assessment. (Sale price − purchase price) × the percentage the land represents of the total rateable value = taxable base. The same rate applies.
Alicante town hall confirms this in its own tax guidance: its self-assessment software does not allow you to calculate using the objective formula alone. It requires the data for both methods and displays both amounts so that the taxpayer can decide which one to file under.
The coefficients in force in 2026
There is a tangle here worth knowing about. The Spanish government approved an increase in the coefficients for 2026 by Royal Decree-Law, but Parliament did not ratify it on 27 January 2026 and the measure lapsed. Since something similar happened with the 2025 table, the coefficients still in force are those approved by article 24 of Royal Decree-Law 8/2023, with effect from 1 January 2024. They are maximums: each town hall may approve lower coefficients in its ordinance, although applying the national ceiling is the norm.
| Years of ownership | Coefficient | Years of ownership | Coefficient |
|---|---|---|---|
| Less than 1 year | 0.15 | 11 years | 0.10 |
| 1 year | 0.15 | 12 years | 0.09 |
| 2 years | 0.14 | 13 years | 0.09 |
| 3 years | 0.14 | 14 years | 0.09 |
| 4 years | 0.16 | 15 years | 0.09 |
| 5 years | 0.18 | 16 years | 0.10 |
| 6 years | 0.19 | 17 years | 0.13 |
| 7 years | 0.20 | 18 years | 0.17 |
| 8 years | 0.19 | 19 years | 0.23 |
| 9 years | 0.15 | 20 years or more | 0.40 |
| 10 years | 0.12 | — | — |
Look at the shape of the curve: the coefficient climbs to year seven, collapses between years eleven and fifteen and shoots up again from year seventeen. Selling after twelve years is cheap under the objective method; selling after twenty is not.
The Alicante rate: 30%, with one relief worth claiming
The tax ordinance of Alicante town hall sets the rate at 30%, the maximum the law allows, and applies it equally to both methods. On top of that there is a relief many people lose simply by not knowing about it: on transfers by inheritance of the deceased's main home, occupied for at least the final two years, a 60% reduction applies on request, provided the self-assessment is filed within six months of the death or within the extension granted. File late and it is gone.
An example using the calculator's default figures: total rateable value €80,000, of which 40% is land, twelve years of ownership, bought for €150,000 and sold for €200,000. Under the objective method the base is 32,000 × 0.09 = €2,880 and the tax is €864. Under the real method the base is 50,000 × 40% = €20,000 and the tax is €6,000. Choosing correctly saves €5,136.
Deadlines, and what happens if you sell at a loss
In Alicante, as in every other municipality, the filing deadline for transfers between living persons — sales and gifts — is 30 working days from signing. For inheritances it is six months from the date of death, extendable by a further six if requested before the first period expires. Filing late triggers the surcharges in article 27 of the General Tax Act: 1% plus another 1% for each full month of delay during the first year, and 15% plus late-payment interest thereafter.
And the most important case: if the sale value is equal to or lower than the acquisition value there is no increase in land value and the transfer falls outside the scope of the tax, so nothing is payable. Be careful, though, because staying quiet is not enough: Alicante town hall does not accept zero-euro payment slips, and you must formally apply for the non-subjection through its electronic office, attaching both the purchase and the sale deeds.
To see this tax in the context of the whole transaction, carry on with our guide to plusvalía municipal in Alicante and Benidorm, review all the costs of selling a home in Alicante and run the full calculation with our selling costs calculator. If you do not yet know what your property could fetch, start with the free online valuation.
Frequently asked questions
Who pays the plusvalía when selling a home in Alicante?
In a sale it is paid by the seller, who is the transferor. In an inheritance or a gift it is paid by whoever receives the property. If the seller is an individual who is not resident in Spain, the buyer becomes the substitute taxpayer and is answerable to the town hall for the tax. Any clause to the contrary in the deed only has effect between the parties.
Can I choose between the objective and the real method?
Yes. After Constitutional Court ruling 182/2021, Royal Decree-Law 26/2021 set out two ways of calculating the taxable base and recognised the taxpayer's right to be taxed under whichever is more favourable. Alicante town hall's self-assessment software requires the data for both methods and shows both amounts so that you can choose.
What happens if I sell at a loss?
If the sale value is equal to or lower than the acquisition value there is no increase in the value of the land, the transfer falls outside the scope of the tax and nothing is payable. But staying silent or filing a zero self-assessment is not enough: you must formally apply for the non-subjection through the town hall's electronic office, attaching the purchase deed and the sale deed.
What is the deadline to pay the plusvalía in Alicante?
For transfers between living persons, including sales and gifts, 30 working days from signing. For inheritances, six months from the date of death, extendable by a further six months if requested before the first deadline expires. Filing late triggers the surcharges set out in article 27 of the General Tax Act.