The first, the real capital gain, takes into account the difference between the purchase and sale price of the home. The second is based on the cadastral value.
The capital gains tax will be charged again in the Basque Country as of this Wednesday, after the provincial and municipal administrations of the CAV have presented a provisional proposal and of urgency for calculate the Tax Law on the Increase in the Value of Urban Land.
The Council of Ministers recently approved the new design of the municipal capital gains tax to reform the aspects declared illegal by the Constitutional Court.
Now the three councils have decided to change the system and provisionally establish a system similar to the one recently approved by the Spanish Government, which includes two calculation alternatives. The first, the real capital gain, takes into account the difference between the purchase price and the sale of the home. The second is based on the cadastral value.
In the Basque Country, since 2017, the capital gain is not paid if there is no profit when selling a home. The system, however, has a problem, which is that if a profit is made between the prices bought and sold, the same is paid by earning 100 euros as 10 000 euros.
The goal is to give legal guarantee to the tax and that there is an identical system in the 251 municipalities of the Basque Country. In addition, the councils have assured that they want to start it as soon as possible and, for example, Álava will approve it tomorrow by decree. This capital gains tax leaves 62 million euros per year in the municipalities of the Basque Autonomous Community.
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