Plusvalía Municipal in Las Palmas de Gran Canaria: calculation, Canarian tax context and specialist advisory

The plusvalía municipal in Las Palmas de Gran Canaria has characteristics specific to the Canarian property market that make it particularly relevant: the surge in property prices in neighbourhoods such as Vegueta, Triana, Las Canteras and the Ensanche, continuously revised cadastral values, and a significant proportion of non-resident owners (European and Latin American) who sell or inherit property on the island. Many taxpayers in Las Palmas file their self-assessment without checking whether the objective or real method is more favourable, or without knowing that they may benefit from the main-home reduction in inheritances.

Since 2010 · 16 years Tax agent AEAT

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Why BM Consulting

Specialised advice and personal service

At BMC we calculate the plusvalía municipal in Las Palmas de Gran Canaria using both methods — objective and real — and select the most favourable for each transaction. We handle the self-assessment with the Las Palmas de Gran Canaria Town Hall, advise on exemptions and reductions, and manage reclaims for prior overpaid assessments before the TEAR of the Canary Islands.

  • Las Palmas de Gran Canaria follows the common Spanish IIVTNU regime (RDL 26/2021) — both calculation methods are available.

  • Significant proportion of non-resident owners

    plusvalía municipal and the 3% IRNR withholding must be managed together.

  • The Canary Islands have their own inheritance tax rules — coordinate both taxes in estates to optimise the overall burden.

  • Deadline

    30 business days for sales; 6 months (extendable) for inheritances from the date of death.

How we work

From first contact to case completion

  1. Property and transaction analysis

    We review the acquisition and disposal dates, the cadastral land value from the Las Palmas de Gran Canaria Town Hall IBI receipt, the transaction price or declared inheritance value, and determine whether the transferor is a resident or non-resident.

  2. Comparative calculation using Las Palmas coefficients

    We calculate the taxable base under the objective method (Las Palmas Town Hall coefficients applied to the cadastral land value) and the real method (gain proportional to the land). We select the lower result.

  3. Self-assessment with the Las Palmas Town Hall

    We file the self-assessment with the Servicio de Gestión Tributaria of the Las Palmas de Gran Canaria Town Hall or via the municipal electronic office, within the legal deadlines: 30 business days for sales and 6 months for inheritances.

  4. Coordination with Canarian tax specifics

    For non-resident owners and transfers with IRPF or Canarian IRNR implications, we coordinate the plusvalía municipal with the 3% IRNR withholding and the capital gain declaration, taking into account the particular features of the Canarian tax regime.

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The problem

The plusvalía municipal in Las Palmas de Gran Canaria has characteristics specific to the Canarian property market that make it particularly relevant: the surge in property prices in neighbourhoods such as Vegueta, Triana, Las Canteras and the Ensanche, continuously revised cadastral values, and a significant proportion of non-resident owners (European and Latin American) who sell or inherit property on the island. Many taxpayers in Las Palmas file their self-assessment without checking whether the objective or real method is more favourable, or without knowing that they may benefit from the main-home reduction in inheritances.

Our solution

At BMC we calculate the plusvalía municipal in Las Palmas de Gran Canaria using both methods — objective and real — and select the most favourable for each transaction. We handle the self-assessment with the Las Palmas de Gran Canaria Town Hall, advise on exemptions and reductions, and manage reclaims for prior overpaid assessments before the TEAR of the Canary Islands.

Process

How we do it

1

Property and transaction analysis

We review the acquisition and disposal dates, the cadastral land value from the Las Palmas de Gran Canaria Town Hall IBI receipt, the transaction price or declared inheritance value, and determine whether the transferor is a resident or non-resident.

2

Comparative calculation using Las Palmas coefficients

We calculate the taxable base under the objective method (Las Palmas Town Hall coefficients applied to the cadastral land value) and the real method (gain proportional to the land). We select the lower result.

3

Self-assessment with the Las Palmas Town Hall

We file the self-assessment with the Servicio de Gestión Tributaria of the Las Palmas de Gran Canaria Town Hall or via the municipal electronic office, within the legal deadlines: 30 business days for sales and 6 months for inheritances.

4

Coordination with Canarian tax specifics

For non-resident owners and transfers with IRPF or Canarian IRNR implications, we coordinate the plusvalía municipal with the 3% IRNR withholding and the capital gain declaration, taking into account the particular features of the Canarian tax regime.

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Las Palmas: no VAT on sales (IGIC applies at 0% in general)
6 meses
Self-assessment deadline for inheritances

I am German and have owned an apartment in Las Canteras for 15 years. When I sold it I did not know how plusvalía worked in the Canary Islands or whether I also owed anything in Germany. BMC calculated the objective method (much cheaper) and also dealt with the 3% IRNR withholding. Everything in one process, no surprises.

Klaus Hoffmann Non-resident owner, Las Palmas - Düsseldorf

The plusvalía municipal in Las Palmas de Gran Canaria — the IIVTNU (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, or municipal land value tax) — follows the common national tax regime, not the foral regime that applies in the Basque Country or Navarre. Following Real Decreto-ley 26/2021, the taxpayer may choose between the objective method and the real method. A distinctive feature of Las Palmas is the significant proportion of non-resident owners (European, Latin American) who, on selling or inheriting property, must simultaneously manage the plusvalía municipal with the Town Hall and the IRNR with the AEAT. At BMC we calculate both methods, file the self-assessment and coordinate with the full tax planning for the transaction.

Las Palmas de Gran Canaria, as the capital of Las Palmas province (Canary Islands), is governed for IIVTNU purposes by the national common rules of the Texto Refundido de la Ley Reguladora de las Haciendas Locales (TRLHL), as amended by Real Decreto-ley 26/2021 following the STC 182/2021 of the Constitutional Court.

Unlike the Basque Country and Navarre, the Canary Islands have no foral regime of their own for local taxes. The Régimen Económico y Fiscal Especial de Canarias (REF) introduces particularities for IRPF, IS, IGIC and other taxes, but does not affect the IIVTNU, which is a local tax managed by the Las Palmas de Gran Canaria Town Hall under the common regime.

Self-assessment procedure with the Las Palmas Town Hall

The IIVTNU self-assessment is filed with the Servicio de Gestión Tributaria of the Las Palmas de Gran Canaria Town Hall, at the municipal offices or via the Town Hall’s electronic office. The process includes:

  1. Downloading the IIVTNU self-assessment form from the Las Palmas Town Hall.
  2. Calculating the taxable base using the chosen method (objective or real).
  3. Applying the municipal tax rate.
  4. Filing the self-assessment and paying the resulting liability.

The required documents are: acquisition deed, transfer deed (or inheritance declaration or acceptance), most recent IBI receipt (showing the cadastral land value) and, if the real method is chosen, the original acquisition deed to evidence the purchase price.

The two IIVTNU calculation methods in Las Palmas

Objective method

Multiplies the cadastral land value by the coefficient for the holding period (within the RDL 26/2021 maximums), approved by the Las Palmas Town Hall in its annual tax ordinance. The municipal tax rate is applied to the resulting base.

Real method

Calculates the actual gain from the transfer (difference between the sale and purchase prices) weighted by the proportion of the cadastral land value to the total cadastral value. The same tax rate applies.

In Las Palmas, where the property market has seen significant appreciation in recent years (particularly in Vegueta, Triana, Las Canteras and the Ensanche), the real method can be particularly relevant for recent acquisitions with moderate gains.

Particular features of Las Palmas: non-residents and the Canarian property market

Las Palmas de Gran Canaria has a significant proportion of non-resident owners, both from European countries (Germany, United Kingdom, Netherlands) and Latin America (Venezuela, Cuba, Colombia). For these owners, transferring property in Las Palmas creates a dual obligation:

  1. IIVTNU with the Las Palmas Town Hall: identical to the resident treatment, with the same methods and deadlines.
  2. IRNR (modelo 210/211) with the AEAT: in sales, the buyer must withhold 3% of the sale price as a payment on account of the non-resident vendor’s IRNR (modelo 211). The vendor files a capital gain declaration (modelo 210) at the rate of 19% (EU/EEA) or 24% (other countries), with the option to deduct the IIVTNU paid.

The deductibility of the IIVTNU paid when calculating the capital gain for IRNR purposes is an aspect that many advisers overlook: the amount paid as plusvalía municipal can be deducted from the sale price for IRNR purposes, reducing the taxable base of the capital gain.

Canarian inheritance tax and its interaction with plusvalía in Las Palmas

The Autonomous Community of the Canary Islands has its own rules on inheritance and gift tax, with specific reductions and allowances that have evolved over recent years. In estates with property in Las Palmas, the heir must settle:

  • Canarian ISD with the Canarian Tax Agency (ATC) — autonomous-community administration.
  • IIVTNU with the Las Palmas de Gran Canaria Town Hall — local administration.

Both taxes are independent but should be coordinated in the calculation, since the property value declared for ISD purposes may be referenced by the Town Hall when verifying the real method plusvalía.

Self-assessment deadlines in Las Palmas

Type of transferDeadline
Sale30 business days from the deed
Gift30 business days from the deed
Inheritance6 months from the date of death
Inheritance extension+6 months (request before month 5)

The RIC and the Canarian REF: do they affect the plusvalía municipal?

The Régimen Económico y Fiscal Especial de Canarias (REF) includes fiscal incentives such as the Reserva para Inversiones en Canarias (RIC), the Zona Especial Canaria (ZEC) and deductions in IS and IRPF. However, these incentives do not affect the IIVTNU, which is a local tax independent of the REF.

If you have a company in the ZEC or use the RIC in your Canarian activities, the REF tax advantages do not reduce the plusvalía municipal that accrues on transfers of the company’s properties. For more information on REF and ZEC benefits, visit our tax planning section.

Read our article on the Constitutional Court ruling and the current IIVTNU regime and the practical plusvalía municipal calculation guide.

BMC has an office in Las Palmas. Find out about our Las Palmas office for local support.

What comes next

Real estate purchase contractFormalise the transaction with a contract that protects buyer and seller, sets out cost allocation, and avoids post-sale surprises.Municipal capital gains tax appealIf the municipal plusvalía tax assessed is disproportionate or the transaction resulted in a loss, we can claim a refund.
FAQ

Frequently asked questions

Yes. Unlike the Basque Country and Navarre (which have their own foral regimes), the Canary Islands follow the common national tax regime for the IIVTNU. The plusvalía municipal in Las Palmas de Gran Canaria is governed by the Texto Refundido de la Ley Reguladora de las Haciendas Locales (TRLHL), the STC 182/2021 and Real Decreto-ley 26/2021. The Las Palmas Town Hall approves its own coefficients and rates within the statutory maximums. The Canarian tax particularities (IGIC, REF canario, ZEC) do not affect the IIVTNU, which is a local tax and not a regional one.
For an apartment in Las Canteras with a cadastral land value of 80,000 euros, sold after 10 years of ownership, the calculation using the objective method would be: base = 80,000 × 0.08 = 6,400 €; liability at the rate approved by the Town Hall (say 25%) = 1,600 €. If the actual gain proportional to the land is 50,000 €, the real method liability would be 12,500 €, making the objective method preferable. Cadastral values in Las Canteras are moderate compared to tourist areas on the Costa del Sol, which often means the real method becomes relevant for recent acquisitions with strong appreciation.
The Las Palmas de Gran Canaria Town Hall may apply reductions on the IIVTNU for transfers on death where the property was the deceased's main home and the beneficiary is the surviving spouse, descendants or ascendants. The precise details of the reduction (percentage and requirements) are set out in the Town Hall's tax ordinance in force for each year. At BMC we verify the current ordinance and advise on whether the reduction applies in each specific case.
Non-residents in Spain who sell property in Las Palmas de Gran Canaria are subject to the IIVTNU on the same terms as residents (same coefficients, rate and methods). In addition, the buyer must withhold 3% of the sale price and pay it to the AEAT as a payment on account of the non-resident vendor's IRNR (modelo 211). These are independent obligations: the IIVTNU is paid to the Las Palmas Town Hall and the IRNR (non-resident capital gain) to the AEAT. BMC manages both obligations together for non-resident vendors with property in Las Palmas.
Inheritance and gift tax in the Canary Islands is governed by the autonomous-community rules of the Canary Islands, which include specific reductions and allowances that have evolved over recent years. In estates with property in Las Palmas, the heir must settle both the ISD with the Canarian Tax Agency (ATC) and the IIVTNU with the Las Palmas de Gran Canaria Town Hall. The cadastral value of the property in the ISD and the declared value may have implications for the real method calculation. BMC coordinates both taxes to optimise the overall estate tax burden.
The Las Palmas de Gran Canaria Town Hall allows applications for instalment payment and deferral of the IIVTNU, which can be very useful in estates where the heirs lack liquidity before being able to sell the property or access the estate assets. The application must be submitted before the standard self-assessment deadline expires (6 months from death) and interest accrues on the deferred amount. At BMC we manage deferral applications with the Las Palmas Town Hall to assist heirs with liquidity in complex situations.

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Frequently asked questions

Questions about Plusvalía Municipal Las Palmas de Gran Canaria: Calculation and Exemptions

Yes. Unlike the Basque Country and Navarre (which have their own foral regimes), the Canary Islands follow the common national tax regime for the IIVTNU. The plusvalía municipal in Las Palmas de Gran Canaria is governed by the Texto Refundido de la Ley Reguladora de las Haciendas Locales (TRLHL), the STC 182/2021 and Real Decreto-ley 26/2021. The Las Palmas Town Hall approves its own coefficients and rates within the statutory maximums. The Canarian tax particularities (IGIC, REF canario, ZEC) do not affect the IIVTNU, which is a local tax and not a regional one.
For an apartment in Las Canteras with a cadastral land value of 80,000 euros, sold after 10 years of ownership, the calculation using the objective method would be: base = 80,000 × 0.08 = 6,400 €; liability at the rate approved by the Town Hall (say 25%) = 1,600 €. If the actual gain proportional to the land is 50,000 €, the real method liability would be 12,500 €, making the objective method preferable. Cadastral values in Las Canteras are moderate compared to tourist areas on the Costa del Sol, which often means the real method becomes relevant for recent acquisitions with strong appreciation.
The Las Palmas de Gran Canaria Town Hall may apply reductions on the IIVTNU for transfers on death where the property was the deceased's main home and the beneficiary is the surviving spouse, descendants or ascendants. The precise details of the reduction (percentage and requirements) are set out in the Town Hall's tax ordinance in force for each year. At BMC we verify the current ordinance and advise on whether the reduction applies in each specific case.
Non-residents in Spain who sell property in Las Palmas de Gran Canaria are subject to the IIVTNU on the same terms as residents (same coefficients, rate and methods). In addition, the buyer must withhold 3% of the sale price and pay it to the AEAT as a payment on account of the non-resident vendor's IRNR (modelo 211). These are independent obligations: the IIVTNU is paid to the Las Palmas Town Hall and the IRNR (non-resident capital gain) to the AEAT. BMC manages both obligations together for non-resident vendors with property in Las Palmas.
Inheritance and gift tax in the Canary Islands is governed by the autonomous-community rules of the Canary Islands, which include specific reductions and allowances that have evolved over recent years. In estates with property in Las Palmas, the heir must settle both the ISD with the Canarian Tax Agency (ATC) and the IIVTNU with the Las Palmas de Gran Canaria Town Hall. The cadastral value of the property in the ISD and the declared value may have implications for the real method calculation. BMC coordinates both taxes to optimise the overall estate tax burden.
The Las Palmas de Gran Canaria Town Hall allows applications for instalment payment and deferral of the IIVTNU, which can be very useful in estates where the heirs lack liquidity before being able to sell the property or access the estate assets. The application must be submitted before the standard self-assessment deadline expires (6 months from death) and interest accrues on the deferred amount. At BMC we manage deferral applications with the Las Palmas Town Hall to assist heirs with liquidity in complex situations.
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