This tax is a local tax levied by the town hall on properties when they are sold or inherited.
The taxable item is the increase on the value of the plot on which the property stands.
The liability is calculated on the rateable value of property and the number of years that have passed since the property was acquired (the longer the period, the higher the amount of tax).
The period of payment is 30 days from the date of sale completion.
Town Halls can determine its own applicable rates within a scale. Solicitors usually liaise with the town hall where the property to be sold is located to obtain a final figure for the day of completion.
Generally, if the seller is a non-resident in Spain, the buyer will retain some funds to pay the plusvalia on behalf of the seller, otherwise the new owner would become liable for the plusvalia in the event of non-payment.