A taxing situation for Mojacar town hall

MOJACAR councillors approved modifications to the local bylaw relating to Capital Gains tax (Plusvalia).
Last November Spain’s Constitutional Court declared that some aspects of the municipal Capital Gains tax were unconstitutional and declared the existing legislation null and void.
The central government has since unveiled a new law on how municipal taxes on capital gains are to be calculated in the wake of the November ruling, although Mojacar councillors voted to apply a tax of only 20 per cent instead of the permitted 30 per cent.
Two different formulas will be used to calculate the taxable amount, with 20 per cent applied to the lower figure.  Based on a report from the municipal Audit department, this reduced rate will shrink Mojacar’s town hall’s Plusvalia income by approximately €400,000.