The Ministry of Finance and the FEMP,(Spanish federation of municipium and provinces), have agreed to reform the tax known as municipal tax on increase of the property values, (Plusvalía Tax) in order to ensure that the sale of real estate at a loss is not tribute on this tax, and this reform will be applied retroactivity from June, 15th2017.

The Government is finalizing the presentation of this draft legislation with the intention that it should enter into force before the summer, overwise, those taxpayers who, since 15 June 2017, have sold their property for less than the price at which they bought it and have nevertheless paid tax on the municipal capital gain, they should receive a refund of this tax once the corresponding claim has been submitted in the manner established by the Law.

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