Municipal capital gains in Barcelona: how it is calculated and how much is paid

Have you inherited a property or have you sold an apartment you own in Barcelona? These are some of the cases in which you will have to pay the municipal capital gains in Barcelona for the profit obtained. In today’s article we tell you how the amount to be paid for capital gains is calculated based on the legislative changes that occurred at the end of 2021 and how much is paid.

When do you pay?

Certainly, the capital gains tax in Barcelona is paid when a home, a parking space, a storage room or a plot of land is transferred (the most frequent types of transfers are sales, inheritances, exchanges, donations or legacies, among others); or when a real right such as usufruct or right of habitation is constituted or transferred.

How is it calculated?

By application of Royal Decree 26/2021 of November 8, by which the Regulatory Law of Local Treasuries is adapted to the jurisprudence of the Constitutional Court on municipal capital gains, there are two methods to calculate said capital gain:

– Objective method.

In this case, the cadastral value of the land is multiplied by the legally established coefficient based on the period of time that elapses between the acquisition and transfer of the property. In this way, the tax base is obtained and multiplied by the corresponding tax rate, which in Barcelona is 30%. The legally established coefficients are the following:

Generation period	Coefficient
Less than 1 year.	0.14
1 year.	0.13
2 years.	0.15
3 years.	0.16
4 years.	0.17
5 years.	0.17
6 years.	0.16
7 years.	0.12
8 years.	0.10
9 years.	0.09
10 years.	0.08
11 years old.	0.08
12 years.	0.08
13 years old.	0.08
14 years old.	0.10
15 years.	0.12
16 years old.	0.16
17 years old.	0.20
18 years old.	0.26
19 years old.	0.36
Equal to or greater than 20 years.	0.45

– Real increase method.

In this case, the percentage corresponding to the cadastral value of the land at the time of transmission is applied to the acquisition and transmission values, and the difference between the values obtained is subsequently made. The result is the tax base and the tax rate set in Barcelona of 30% is applied. To find out the cadastral value you can consult the deed of acquisition of the property (inheritance or sale, among others), the Real Estate Tax (IBI) receipt or the real estate cadastre website. But, in the event that this value does not appear, you can go to the citizen service office or the Institut Municipal d’Hisenda so that they can provide it to you or tell you what procedures to follow. So that you know how to do the calculation with the real increase method, we give you an example: if you buy a house for 300,000 euros and sell it for 400,000 euros, the gain is 100,000 euros. In the event that the cadastral value is 50%, the tax base will be 50,000 euros and 30% is applied to this amount, so 15,000 euros would have to be paid. The taxpayer is the one who chooses the capital gain calculation method that he wishes to apply, so it is advisable to estimate the capital gain by both methods and see how less is paid. The result will be influenced by factors such as the years that have elapsed from the acquisition to the transfer and the profit obtained from the transfer. It may also happen that no profit has been obtained, as we will see in one of the following sections.

How is the transmission date determined in the municipal capital gains?

As we have seen, in order to calculate the capital gain, it is essential to know the date of transfer of the property, that is, the specific moment in which the ownership of said property changes. In the case of an inheritance or a legacy, the date of transmission is the date of death of the deceased. In all other cases, the date of transmission is the date that appears in the public document by which the transmission occurs, for example, the date of the deed of sale or donation of the property.

How much is paid for municipal capital gains in Barcelona if there has been no increase in value?

One of the issues that has been most debated in recent years consists of the obligation to pay or not the municipal capital gains when there has not been an increase in the value of the real estate. In this case, after various rulings, the Law Regulating Local Treasuries was amended and it was established that the tax will not be subject to land transfers for which the non-existence of an increase in value due to difference was found. between the values of said land and the dates of transmission and acquisition. In this case, the taxpayer must prove that there is no increase in value and for this, when the real estate is transferred, he must provide the title of transfer and the title of acquisition. The Hisenda Municipal Institute will check the declared values to verify that there has not been an increase in value.

Can bonuses be applied?

To calculate the municipal capital gains in Barcelona it must also be considered that there are a series of bonuses of 95% of the quota that are applied in two cases:

When the habitual residence is transmitted by inheritance.

In this case, the bonus is applied on the condition that the home is not transferred during the three years following the date of death of the transferor, unless the purchaser dies in that period. This bonus can be requested: – The spouse and descendants. – Whoever is considered to have a similar kinship relationship that allows them to continue using the home for having lived with the deceased for the two years prior to death, siblings, person who has an emotional relationship similar to that of the spouse, people with a disability of 65% more or with a relationship of up to the third collateral degree with the deceased.

When a business premises is transferred by inheritance in which the deceased person carried out a professional activity on a regular basis.

In this case, the bonus is applied with the condition of not transferring the business premises and continuing with the same activity during the five years after the death. Certainly, it must be creditedto a family relationship with the deceased and pay the subsidized amount if the property is transferred during the period established by law, together with late-payment interest. In short, the calculation of municipal capital gains in Barcelona is complex and various elements that influence the final result must be considered. It is advisable, therefore, to have the help of expert real estate advisers who can tell you how to perform the calculation, what methods exist and prepare a simulation so that you can choose the method by which you can save taxes.