Tax holidays with capital gains: sales signed until this Wednesday are free

  • Some lawyers warn of ‘legal chaos’ since the Constitutional ruling that annulled the tribute has not yet been published in the BOE

The decree-law of the Ministry of Finance for the approval of the new municipal capital gains tax will enter into force as soon as it is published in the State official newsletter (BOE), the next day. If, foreseeably, the publication in the BOE takes place this Tuesday, it will come into effect on Wednesday, November 10.

The Government has been quick to approve the new regulation to minimize the period of legal vacuum, since the constitutional Court it invalidated the municipal tax on October 26, when it published its latest ruling. The speed of the Treasury has not been able to avoid, in any case, leaving a parenthesis of ‘tax holidays’ in this tax in the 15 days that mediate between October 26 and its foreseeable entry into force on November 10.

During these 15 days the tax has been unconstitutional and, therefore, the urban real estate purchase and sale operations signed in this period will be exempt from the municipal tax. Also the inheritances and donations formalized from October 26. So at least they understand it in the Ministry of Finance.

Legal doubts

However, some legal professionals raise doubts about the effectiveness of a Constitutional ruling that has not yet been published in the Official State Gazette (BOE). A) Yes, David Viladecans, Tecnotramit’s director of legal advice, qualifies the current situation “of absolute chaos, being moderate in describing it” and points out that some municipalities continue to turn liquidations, “since the sentence that is being talked about is not published and has no effect on them.” In Viladecans’ opinion, it is not possible to speak of “tax holidays”, but he does describe the situation as “a legal maremagnum that we will see how to resolve, whether to one side or the other”. From his point of view as a legal professional, the current situation is hurting consumers more without legal advice since “the large buyers and sellers of real estate made decisions and began to contest to be in a better position not to pay the tax” .

Furthermore, there are jurists who question whether the tax reform has been adopted by means of a royal decree-law, and not by law. The Minister spokesperson for the Government, Isabel rodriguez, justified this Monday the “urgency” to legislate to give “legal certainty” to taxpayers. “There was also urgency on the part of the municipalities, since the absence of this tax seriously affected the structure of their accounts at the time they are preparing their draft budgets for next year”

Restlessness among owners

The City of MadridSince the Constitutional ruling became known, it has not processed self-assessments of capital gains tax. During these days both through the Madrid Line and the taxpayer service offices Queries have been answered, which have been about 3,300 since October 26. “As is logical as a result of the ruling, there has been an increase in issues related to this issue. We are talking about an average daily increase of 60% in issues related to this tax,” according to municipal sources.

“It seems that there has been more media noise than among customers who wanted to sell their home, although there were doubts about what to do; whether to sell or wait for the situation to be clarified,” says Ferran Font, director of studies at “One of the most controversial parts has been the inability to claim what was paid in the last four years,” he adds. In any case, the manager confirms that “no type of price variation has been observed since October 26 attributable to the legal uncertainty around capital gains tax. It is a resolution that is more important for municipalities than for individuals “, he opines.

Assuming that all municipalities collect around 2,600 million a year from this tax, an approximate linear estimate could be made of the impact of a 15-day tax holiday: about 107 million euros.

Relevant operations of the last days

It is difficult to know which operations have been signed before a notary in these 15 days, but the real estate portal it gives an account, for example, of some of the most relevant real estate transactions in the last two weeks, without specifying whether the signature has been effective or not in that short period.

Related news

Among the real estate transactions that, according to this portal, have made the news in the last 15 days is the sale of the Estel building in Barcelona (for around 120 million) or the acquisition of a property on Calle Preciados in Madrid by Mutuality of the Legal Profession (for about 80 million). The portal also refers to an investment of 36 million in the Madrid town of Three songs for the acquisition of 9,000 square meters where to build houses or the acquisition of Hotel Hilton Alexandra from Barcelona, ​​for 32.5 million. In the latter case, sources close to the seller (the Borrell family) assure that the tax does not apply because “the building has not been sold but the company.”

The acquisition of a new luxury hotel in Madrid by Millenium it is estimated at 30 million. For its part, the purchase operation of 150,000 square meters in Tenerife by the firm Los Menceyes It is valued at 20 million, according to information compiled by for the last two weeks, from various sources cited by the portal itself.

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