Plusvalía municipal Mallorca

You're still ahead of the purchase and want to know what awaits you on the other side? The stock of properties in Mallorca shows you the price level from which the cadastral value and land share can later be derived.

What is the Plusvalía municipal and how much do you have to pay?

The Plusvalía municipal (officially: Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, IIVTNU for short) is a municipal tax on the increase in value that an urban plot of land has experienced since the last change of ownership – regardless of whether the sale itself generated a profit. How much ultimately has to be paid depends on three variables: the cadastral value of the land, the holding period, and the rate set by the respective municipality (Ayuntamiento) – which is why the calculation differs noticeably from one municipality to another. The calculator above immediately shows you an example with the pre-filled values; enter your own data to see your result.

How the Plusvalía municipal is calculated

The municipality – or you yourself, if autoliquidación (self-assessment) is required – normally determines the tax using the objective method. The starting point is the valor catastral del suelo (cadastral value of the land) on the day of transfer, not the purchase price. The municipality multiplies this value by a coefficient that depends on the holding period: someone who has owned a property for only a short time pays a lower coefficient than someone who has held it for a long time – up to a legally set upper limit for the holding period, beyond which the coefficient no longer increases.

Crucially: the coefficients stated in the law are maximum values, not fixed requirements. Each municipality sets the values actually applied in its own ordenanza fiscal (municipal tax statute) – and may stay below the legal maximum in doing so. Some municipalities in Mallorca simply refer to the maximum values applicable at state level, while others maintain their own table with lower coefficients. If a statute, on the other hand, states a value that exceeds what the law currently permits – for example, because the legal maximum was lowered in the meantime and the municipality has not yet adjusted its statute – the lower legal value automatically applies. The calculator above takes this into account individually for each municipality on record, rather than assuming the same value everywhere.

The municipality applies its own tax rate to the assessment basis determined in this way, likewise freely set, capped at 30%. The result is the cuota íntegra (tax amount before reductions). In the case of an inheritance passed to children, spouses or parents of the deceased, some municipalities additionally allow a reduction of up to 95% on exactly this cuota íntegra – the result after that is called the cuota líquida (tax amount after reductions). Important: this reduction always applies to the already calculated tax amount, never to the land value itself. And it only applies to the close circle of direct relatives – siblings, nieces and nephews are not included, even though they are often the actual heirs in the case of a childless testator.

Alongside the objective method there is the real method: here what counts is the actual increase in value, apportioned to the land share of the property – calculated from the difference between the sale value and the acquisition value, or, in the case of an inheritance or gift, from the value declared for inheritance and gift tax. If this real increase turns out lower than the objective assessment basis, it becomes the basis – but only if you explicitly apply for this and submit both deeds, the one for the acquisition and the one for the transfer. Without this application, the objective calculation remains in place, even if it works out less favourably.

Two further adjusting factors lie entirely within the discretion of the municipality and therefore only apply where they are laid down in the respective municipal bylaw: a reduction on the new land value for the first years after a general revaluation of the cadastral values, and a smaller reduction for as long as the cadastral value has not yet been adjusted to such a revaluation. Both reduce the land value, never the assessment basis directly.

One point specifically concerns sellers not resident in Spain: if a natural person without a tax residence in Spain sells, it is not that person who becomes liable for the tax, but the buyer – as sustituto del contribuyente (substitute taxpayer). The buyer must then declare and pay the tax, regardless of what the seller and buyer have contractually agreed between themselves. For a non-resident company, however, this does not apply – here the company itself remains liable. If you are selling to or buying from a non-resident private individual, clarify the allocation of costs already in the purchase contract, not only at the notary appointment.

You can best see how the calculation works in detail from the worked examples in the calculator above – ranging from an exact holding period, through a partial year, to the borderline case around a change in the coefficient table.

Special cases: when the calculation works differently

Not every plot of land and not every transaction falls under the Plusvalía municipal in the form described here:

• A rústica (a property classified as rural for cadastral purposes) is not taxable from the outset – the calculator does not even carry out a calculation here.
• The transfer of a property into the marital community of property, as well as a transfer between spouses following a divorce ruling, also does not trigger the tax. Important if you have acquired a property in this way: the holding period nevertheless continues to run for a later transfer, calculated from the last taxable acquisition – not from the takeover itself.
• For a usufructo (usufruct) or a nuda propiedad (bare ownership, i.e. the property without the right of use), the calculator deliberately does not calculate: the valuation of these limited rights follows its own rules under property transfer tax law and requires additional information, such as the age of the usufructuary.
• The same applies to the right to add an extra storey or a basement to a building, and to expropriations: both occur rarely and are not covered on this page.

When it comes to municipal data too, the calculator sticks to what is actually documented in a published ordinance. For some municipalities in Mallorca, a time-staggered tax rate cannot be evidenced for the entire relevant period; for others, the rate is known but staggered by holding period, without the ordinance clearly setting out the exact band boundaries. In these cases, the calculator shows you the tax base and the applicable coefficient, but deliberately no tax amount – an honest gap is better than a made-up figure. For the exact amount, the only option is to enquire with the competent municipal administration.

Another special feature concerns two short time windows, each in January: the Congress of Deputies most recently, at the end of January 2026, reversed an increase in the statutory maximum coefficients that had been decided shortly before – as it had done a year earlier with a similar increase. For transfers falling exactly within one of these windows, it remains unclear which coefficients apply. For this reason, the calculator does not output a single amount but shows both possible interpretations side by side.

When no tax is due

The most important exception applies to every sale: if it can be proven that the property has not gained any value between purchase and sale – i.e. the difference between the transfer value and the acquisition value is zero or negative – no tax liability arises at all. The burden of proof lies with you as the seller: a declaration to the municipality, together with both deeds, showing the absence of any increase in value.

Whether, in the case of inheritance, Spanish inheritance and gift tax is due in addition to the plusvalía municipal is a completely separate question — the two taxes have different taxpayers and different tax bases. What applies in the Balearics is set out in the guide on Inheritance and gifting of property.

There are also two statutory exemptions that the calculator does not check itself, because they require case-by-case proof: transfers of properties within a protected historic ensemble or with their own listed-building status, where the owner has demonstrably carried out conservation or restoration work at their own expense; and the dación en pago (transfer of the owner-occupied home to the bank instead of repaying the mortgage) in cases of insolvency, provided the person affected and their household do not have sufficient other means available. Both exemptions are implemented in detail by the respective ordenanza fiscal – if in doubt, ask the municipality directly whether your case qualifies.

Deadlines and forms

After a sale between living persons, you have 30 días hábiles (working days, not calendar days) to submit the declaration to the relevant municipality. In the case of an inheritance, the deadline is considerably longer at 6 months and can be extended on request – though never beyond a total of 12 months.

Many municipalities on Mallorca require an autoliquidación: you calculate the tax yourself and pay it directly when submitting the declaration, rather than waiting for an assessment. An exception applies if no cadastral value has yet been set for the property – in that case, the municipality is expressly not allowed to require self-assessment and must instead issue its own assessment once the value has been determined. Notaries are also required to report all notarised transfers to the municipality on a quarterly basis – so the tax obligation remains in place even if you don't submit anything yourself.

If you want to sell an inherited property, our guide on selling an inherited property in Spain explains step by step what needs to be clarified in addition to the plusvalía municipal.

Legal basis and status of information

The plusvalía municipal is regulated in Real Decreto Legislativo 2/2004, the Texto Refundido de la Ley Reguladora de las Haciendas Locales (TRLRHL) – specifically in articles 104 to 110. Since the ruling of the Spanish Constitutional Court in 2021, the current version applies: no tax without a proven increase in value, a choice of two calculation methods, and maximum coefficients that the legislator has since adjusted several times. Two of these adjustments, each decided shortly before the end of the year and taking effect at the start of the following year, have since been repealed again by the Congress of Deputies.

The national figures mentioned on this page – such as the maximum rate, the reduction for inheritances, and the deadlines – are taken from the consolidated legal text, as at 06.09.2026. The details for individual municipalities on Mallorca – tax rate, their own coefficient tables, reductions – are each documented from the respective publications of the municipal tax statutes in the Official Gazette of the Balearic Islands (BOIB). This page is no substitute for tax advice: for larger amounts or unusual case constellations, it's worth consulting a tax advisor (asesor fiscal) or law firm operating on Mallorca beforehand.

You'll find an overview of all taxes payable on a property sale in Spain in our guide Taxes on selling property in Spain; if you're just starting to think about a sale, you'll find the broader context in our guide Selling property on Mallorca.

Prepare the documents for the declaration

Have the deed for your acquisition and the deed for the current transfer ready. You will also need the cadastral value of the land on the date of transfer – not just the total cadastral value of a developed property.

Both deeds are particularly important if you want to demonstrate that there has been no increase in value, or if you apply to use the lower actual increase in value instead of the objective tax base. Check with the relevant local council what other information and documents its form requires.

Note: This information is not legal or tax advice.

Frequently asked questions

Related calculators

The plusvalía municipal is just one of several taxes payable when selling a property on Mallorca. These calculators complement it:

• Capital gains tax on the sale – the tax on the profit from the sale itself, independent of the plusvalía municipal.
• 3% withholding – the amount that the buyer pays directly to the tax office when the seller is not a resident.
• IBI tax – the ongoing property tax, which is based on the same cadastral value as the plusvalía municipal.