The government will include the new references in the 2023 budgets
The government has taken advantage of the 2023 General State Budget (PGE) project to introduce the first update of the new coefficients that will be applied to calculate the municipal capital gains tax, which is paid on transfers of real estate (inheritance, gift, shipment, sale or barter, among others).
The new scales, which the executive branch will be able to change every year, come almost a year after the Constitutional Court ruled that the formula for calculating the tax was abusive, forcing the Treasury to hastily adopt it in November 2021. to suit.
As stated in the so-called ‘Yellow Book’ of the new public accounts, “the amounts of the maximum coefficients that are expected to be applied to the value of the land are updated according to the period in which the appreciation is generated, for the determination of the tax base of the Tax on the appreciation of land of an urban character».
The figures will have to be taken into account for those considering selling their homes today, as the difference between doing so before the end of this year or from January 1, 2023 is remarkable, in some cases reaching an increase of up to 50% in the coefficient used for the calculation.
For example, if the property was purchased 20 years or more ago, the coefficient applied to calculate the tax remains unchanged at 0.45. But if the period is eight years, the coefficient applied if the operation closes this year will be 0.10, compared to 0.15 if it is performed in 2023. That’s 50% more. The same applies to broadcasts that take place after seven years, in which it goes from 0.12 to 0.18.
Smaller are the growths in the 11, 12, 13, 14 and 16 years, although in the 15 years it is reduced from 0.12 to 0.10. It is also reduced for sales at 19 years (from 0.36 to 0.29), at 18 years (from 0.26 to 0.23) and at 17 years, which goes from 0.20 to 0.17.
According to the new regulations adopted after the Constitutional Decree, the taxpayer can choose between two methods of calculation: that of the coefficients, which takes into account the years elapsed from the purchase of the property to the transfer, or that of the real capital gain , which is calculated on the basis of the acquisition value of the land and the sale value. Likewise, if it is shown that there has been no benefit during the period, the tax is not payable.
It should be remembered that the decree recognizes the possibility that, solely for this tax, the municipalities may correct the cadastral values of the land downwards by up to 15%, depending on their degree of updating. This guarantees that the tax is adapted to the real estate reality of each municipality.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
