By Linda Hall • 05 February 2022 • 21:34
REDUCED INCOME: Mojacar town hall will lose out on Capital Gains tax
Photo credit: Indalomania
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.
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Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share?
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