The Constitutional Court in Spain is the court which decides if a law is against the Spanish Constitution or not.
A man in Madrid sold his house and made a profit 3,473 euros. The local town hall said that he had to pay 3,560 euros for the plusvalia tax. This meant that the man had to pay all his profit plus 86 euros from his own pocket. The Constitutional Court in 2017 held that you did not have to pay plusvalia if you didn’t make a profit on the sale. Now the Constitutional Court has now gone further and said that the town hall can no longer ask for the plusvalia when you make a profit if the plusvalia tax is greater than the profit.
As with all our posts, this isn’t legal advice, if you have found yourself in this situation in the last five years contact us at [email protected]
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