The new method for calculating municipal capital gains approved today by the Ministry of Finance leaves the taxpayer free to choose between two systems: one objective based on coefficients of increase and the other called real capital gains (difference between acquisition and sale value). This has been carried out to adapt the tax to the constitutional framework, although all that glitters in the decision adopted by the Government is not gold.
The Treasury, in a presentation, establishes three examples of calculating capital gains, depending on each method. In the first one, a person buys a property for 300,000 euros and sells it four years later for 290,000 euros. With the old system, you would pay under the standard
state (based on maximums) 3,360 euros of municipal capital gain; Under the new system, since there has been a loss of value, the operation would not be subject to tax and nothing should be paid.
In the second of the cases presented by the Executive is where the problems arise. A home is acquired in 2017 for 310,000 euros and is sold in 2021 for 350,000 euros. On the date of sale, the total cadastral value is 100,000 euros, of which 60,000 represents the cadastral value of the land. «The increase in value for tax purposes will be the result of applying to the capital gain the percentage that represents the cadastral value of the land over the total cadastral value. In other words, the increase in the value that will be attributed to the taxpayer will be 60% of 40,000 euros: 24,000 euros, “says the Treasury.
In this case, between the two new systems, the coefficient system is better for the taxpayer with a payment of 3.060 euros. What the Treasury hides in this case is that with the method prior to this reform, less would be paid in this case, as well as in many others. Using the system that had been in force until now, the result, using the maximums established by state law, yields a payment of 2,664 euros, according to calculations by this newspaper using the same assumptions as the ministry of María Jesús Montero, who has not attended the press conference after the Council of Ministers to defend its reform.
The third assumption that the Treasury simulates is a home acquired in 2014 for 250,000 euros and sold in 2021 for 260,000 euros. The capital gain obtained is 10,000 euros, with a land value of 20,000 euros. The increase in value for tax purposes will be the result of applying the 20% that represents the value of the land to the 10,000 euros of capital gain: 2,000 euros. In this case, the coefficient method yields a tax base of 2,400 euros, which means that the amount to be paid would be higher than that established under the real capital gain system. Under the latter system, it would be cheaper to pay a tax base of 2,000 euros, which would leave a maximum payment of 600 euros.
Using the method in force that existed before, the resulting payment is 1,470 euros, which is higher in this case than the one that comes out under the new system of real capital gains.