Plusvalia Municipal in Murcia: new calculation, exemptions and advisory for property owners in the Region of Murcia

The plusvalia municipal in Murcia, formally the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (IIVTNU), is administered by Murcia Town Hall through its Municipal Tax Management Service. Following Real Decreto-ley 26/2021, taxpayers may choose between the objective method and the real-gain method, paying only the lower result. A distinctive feature of Murcia is that the municipal boundary encompasses both the urban centre and extensive outlying districts with very different cadastral values, making it especially important to calculate both methods before filing a self-assessment. At BMC we calculate the most favourable charge, submit the self-assessment and pursue unlawful assessments. For the full tax position of the transaction, see our tax planning section.

The IIVTNU in Murcia: procedure with the Town Hall

Murcia Town Hall administers the IIVTNU directly through the Municipal Tax Management Service, located at Plaza del Romea, 1. Self-assessments may be submitted in person at that office or through the electronic registry of Murcia Town Hall (murcia.es).

The typical process is:

1. The taxpayer submits the self-assessment within the statutory deadline.
2. The Town Hall may carry out a compliance check, particularly when the real-gain method is used.
3. If discrepancies are found, a provisional assessment is issued, which may be appealed.
4. The administrative appeal (recurso de reposicion) is lodged with Murcia Town Hall itself; if dismissed, the economic-administrative claim lies with the TEAR of the Region of Murcia.

The two IIVTNU calculation methods in Murcia

Objective method

This multiplies the cadastral land value (shown on the IBI receipt issued by Murcia Town Hall) by the coefficient corresponding to the holding period, subject to the ceilings in RDL 26/2021:

Murcia Town Hall sets its own tax rate in its annual fiscal ordinance.

Real-gain method

The tax base is the difference between the transfer price and the acquisition price (actual gain), weighted by the proportion that the cadastral land value represents of the total cadastral value of the property.

The taxpayer chooses the method producing the lower result. BMC performs the comparative calculation in every case.

The extent of the Murcia municipal boundary and cadastral values

The municipal boundary of Murcia is one of the largest in Spain (almost 900 km2), which translates into a wide variety of cadastral land values depending on the area:

• Urban centre (Barrio del Carmen, Vista Alegre, La Flota, Santiago el Mayor): relatively higher cadastral land values.
• Nearby districts (Espinardo, La Alberca, El Palmar, Beniajan): intermediate cadastral values.
• Rural districts and dispersed settlements: lower cadastral land values.

This variability means that the IIVTNU charge under the objective method can differ very significantly between a flat in Murcia city centre and a property in a rural district, even for the same holding period. The real-gain method, by contrast, depends on the actual gain achieved, regardless of location.

Reductions from the IIVTNU at Murcia Town Hall

Reduction for primary residence in inheritances

Murcia Town Hall may apply reductions on the IIVTNU charge when the property transferred by inheritance was the deceased’s primary residence and the acquirer is the surviving spouse, a child, or a parent. The reduction must be expressly requested in the self-assessment with supporting documentation of habitual residence (municipal registration record, income tax returns of the deceased, etc.).

For the exact reduction percentage in force in the relevant year, please consult Murcia Town Hall’s fiscal ordinance or contact BMC.

Exemption for mortgage foreclosure (dacion en pago) of a primary residence

The national exemption under art. 105.1.c TRLHL for insolvent mortgage debtors who transfer their primary residence to the lender applies automatically in Murcia, without any need for an express request.

Transfers with no value increase

If the sale price is equal to or lower than the acquisition price, no tax liability arises. A refund of amounts paid may be sought within the four-year period following payment, upon evidence of a loss in value.

Inheritance and Gift Tax in the Region of Murcia

The Autonomous Community of the Region of Murcia has its own rules on Inheritance and Gift Tax (Impuesto de Sucesiones y Donaciones) which, as with other common-law regions, may be significantly more favourable than the national regime by virtue of regional reductions and allowances. In inheritances involving property in Murcia, the heir must settle:

• Regional Inheritance and Gift Tax before the Tax Agency of the Region of Murcia (ATRM).
• IIVTNU before Murcia Town Hall.

Both taxes are independent but should be planned jointly to optimise the overall tax cost. BMC advises on the entirety of inheritances involving property in the Region of Murcia.

Self-assessment deadlines at Murcia Town Hall

Claims for plusvalia municipal in Murcia

For prior transactions in which plusvalia was paid without a real gain, or using the wrong method, the following avenues are available:

1. Sale at a real loss: rectification of the self-assessment and refund within the four years from payment.
2. Outstanding Murcia Town Hall assessments: administrative appeal (recurso de reposicion) before the Town Hall and, if dismissed, economic-administrative claim before the TEAR of Murcia.
3. Self-assessments within the rectification period (four years): if the more expensive method was used, a rectification may be requested with a refund of the difference.

See the article on the Constitutional Court ruling and the current IIVTNU rules and the plusvalia municipal calculation guide.

BMC has an office in Murcia. Learn more about our Murcia office for local assistance.