Elche’s efficiency boost: Suma takes the reins on Capital Gains Tax

Elche's efficiency boost: Suma takes the reins on Capital Gains Tax.

Elche's efficiency boost: Suma takes the reins on Capital Gains Tax. Image: Suma Gestión Tributaria / Facebook.

Starting July 1 this year, the provincial organisation Suma will take charge of managing capital gains tax in Elche.

Capital Gains Tax covers taxes from property sales and inheritances.

This move is expected to channel around €4.5M into municipal funds in 2024.

Previously, the City Council handled all processing, including liquidation, while Suma issued receipts.

The rationale behind this shift is to ease the workload and increase revenue from the tax on urban land value appreciation.

According to Elche’s mayor, Pablo Ruz, this change would make Suma’s electronic platform and physical offices across the province accessible to taxpayers, reducing pressure on municipal agencies, especially the Customer Service Offices (OMAC).

This aims to streamline processes, requiring taxpayers to visit the office only once for information and, if necessary, document submission.

Elche expects several benefits from this decision.

They anticipate a minimum additional income of €100,000 annually from verifying undeclared inheritances.

Additionally, other responsibilities like managing the Real Estate Tax (IBI) could be handled more efficiently.

The Treasury Department has calculated both the additional cost and potential savings for municipal funds with Suma taking over comprehensive tax management.

The City Council would pay Suma 2.5 per cent of collected capital gains, totalling €67,605.

However, the Treasury expects to save €211,147 from personnel costs directly associated with the Capital Gains Bureau, including six auxiliary and administrative positions.

Thank you for taking the time to read this article. Do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

Author badge placeholder
Written by

Anna Ellis

Originally from Derbyshire, Anna has lived in the middle of nowhere on the Costa Blanca for 19 years. She is passionate about her animal family including four dogs and four horses, musicals and cooking.