Municipal capital gains tax calculator

The municipal capital gains tax, officially the Tax on the Increase in Value of Urban Land (IIVTNU), taxes the increase in urban land value from acquisition to transfer.

It is due in three situations: sale, inheritance and donation. In sales, the seller pays. In inheritances, the heirs pay. In donations, the donee (the recipient) pays.

It is a municipal tax: each town council sets its own rate (up to a maximum of 30%) and may establish reliefs, for example on transfers by inheritance between direct family members.

Following Constitutional Court ruling 182/2021, which declared the previous system unconstitutional, RDL 26/2021 established two calculation methods. The taxpayer may choose the more favourable one.

The objective method multiplies the cadastral land value by a coefficient that depends on the years elapsed between purchase and sale. These coefficients are updated annually in the national budget.

The direct estimation method uses the actual gain (difference between sale and purchase price) and applies the percentage that the land represents of the total cadastral value. If there is no gain, the tax is not due.

In addition to capital gains tax, the notarial deed has its own regulated cost. You can estimate it with our notary fee calculator.