Plusvalía Municipal is a local tax paid when property ownership changes in Tenerife. Even if inheritance tax is almost zero, Plusvalía is still required. This guide explains what it is, how it’s calculated, and when you need to pay it.
What Is Plusvalía Municipal?
Plusvalía is a town hall tax based on the increase in land value over time. It is not based on the sale price or the market value, only the theoretical increase of the land (not the building) since the previous transfer.
Who Pays Plusvalía When Inheriting?
The heirs must pay Plusvalía when they inherit property in Tenerife. The tax must be filed after the inheritance deed is signed, usually within 30 days.
How Much Is It?
The amount depends on the:
- Years the property was owned
- Location (each town hall has different rates)
- Land value set by the Catastro
Typical amounts range from €300 to €3,000, but high-value properties or long ownership periods may be more.
You Also Pay Plusvalía When Selling
If you later sell the inherited property, you may pay a second Plusvalía tax — this time as the seller. The amount depends on how long you hold the property before selling.
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