Municipal Capital Gain or the Tax on the increase in the value of urban land (IIVTNU)
The TC so far has failed on the issue of unconstitutionality raised on 02/23/2015. It was raised by the Court No. 3 of San Sebastian, regarding art. 4 and 7.4 of the provincial law 16/1989 of July 5 of the IIVTNU of the territory of Guipúzcoa.
It is expected that the TC will rule on the same, in matters raised by Courts and Courts of the non-provincial territories, as well as state regulations.
The failure of the TC has been to annul the tax calculation system that allows taxation of situations of no increase in the value of the land.
The IIVTNU taxes the increases in value of urban land in a maximum period of 20 years. The tax rule assumes that there is an increase in value, whatever the real value. Does not admit evidence to the contrary. Only the cadastral value of the land of the property at the time of sale and the years it has been in the owner’s hands, regardless of their real value, is taken into account.
These municipal capital gains are produced in sales, donations, inheritances … for example.