The Government updates in the PGE of 2023 the coefficients of the municipal capital gain

MADRID, 11 Oct. (EUROPA PRESS) -

The 2023 General State Budget project includes updating the maximum coefficients that apply to the calculation of the Tax on the Increase in the Value of Urban Land, known as municipal capital gains.

In terms of local taxes, the Government has reviewed in the General State Budgets (PGE) of 2023, as announced this Tuesday by Vozpópuli and Expansión, the amounts of the maximum coefficients planned to be applied to the value of the land depending on the period of generation of the increase in value, for the determination of the tax base of the Tax on the Increase in Value of Urban Land.

In 2021, the Government approved a Royal Decree-law to adapt the Tax on the Increase in the Value of Urban Land, known as municipal capital gains, to the ruling of the Constitutional Court, which overturned the design of the tax until then in force.

This provision for updating said amounts is enabled by the tax's own regulations, which establish that "these maximum coefficients will be updated annually by means of a regulation with legal status, and said updating may be carried out by means of the laws of the general budget of the State".

It should be remembered that the decree recognizes the possibility that the municipalities, for the sole purpose of this tax, correct up to 15% downwards the cadastral values ​​of the land depending on their degree of updating. This guarantees that the tax is adapted to the real estate reality of each municipality.

REVIEW OF THE COEFFICIENTS: SOME GO UP AND OTHERS GO DOWN

According to the budget project, the coefficient rises for sales of real estate purchased less than a year ago, which goes from 0.14 to 0.15, and for those of one year, which goes from 0.13 to 0.15 . On its side, it falls for two-year sales from 0.15 to 0.14, and for three-year sales (from 0.16 to 0.15).

On his side, it rises for those of 4 and 5 years (from 0.17 to 0.18), while it rises from 0.16 to 0.19 for those of 6 years. Similarly, for 7-year-olds it rises from 0.12 to 0.18.

As for the 8-year-olds, it grew from 0.10 to 0.15 and it also did so for the 9-year-olds (0.09 to 0.12) and for the 10-year-olds (0.08 to 0.10). Smaller are the growths in the 11, 12, 13, 14 and 16 years, although in the 15 years it is cut from 0.12 to 0.10.

In the upper part of the table, the maximum coefficient for sales of twenty years or more remains at 0.45, but it is lowered for sales of 19 years (from 0.36 to 0.29), to 18 years (from 0.26 to 0.23) and at 17 years, which goes from 0.20 to 0.17.