Valencia increases Plusvalía to curb “speculative home sales”.

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Valencia increases plusvalía

VALENCIA – The Valencia City Council will increase the Plusvalía to curb “speculative home sales” through an update of the Plusvalía coefficient. The Plusvalía is the tax on the increase in value of the land on which the property stands.

The capital gains tax is one of the most prominent taxes in the sale of properties. It is levied by the municipality where the property is located. The increase of the coefficient was approved on January 20. Consequently it applies to operations where the house sold has had the same owner for less than one year. Then a sale is considered “speculative”.

Decline Plusvalía on non-speculative sales

On the other hand, the municipality has implemented a reduction of this coefficient in those transactions where the property has been owned by the same owner for at least 14 years.

According to Acting Mayor Sandra Gómez, the measure helps the municipality to fight against the so-called vulture funds. All of those who see housing as an asset to speculate with, become rich instead of a fundamental right of the inhabitants.

Valencia will thus tax speculative home ownership more heavily. According to, the update means a 13% tax increase for properties that have been owned by the same owner for less than a year. The reduction, on the other hand, for sales of properties that have been owned by a single owner for at least 14 years will average 43%.

Related post: Plusvalia (capital gains tax): two options and you can choose the most favourable one

For example, a ‘speculative’ property with a cadastral value of €50,000 will be subject to an increase of €300. On the other hand, the reduction in the case of a non-speculative property will amount to approximately €1,000.

Valencia accepts the loss of income

The reduction in the coefficient of non-speculative sales means a loss of income for the municipality of about €121,000. However, Finance Councillor Borja Sanjuán defends that “it is a much fairer configuration of the tax”. “The municipality unanimously wants to end speculation regarding housing in the city. It wants to make it more difficult for companies that hope to make a lot of money from it. This should make it easier for citizens of Valencia to buy a house and live in it long-term .”

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