Plusvalia Municipal in Seville: new calculation after the Constitutional Court, reductions and claims for prior unlawful assessments

The plusvalia municipal in Seville (Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana, IIVTNU) is administered by the Agencia Tributaria de Sevilla (OPAEF), an autonomous body based at Calle Conteros, 8. Since Real Decreto-ley 26/2021, taxpayers may choose between the objective method and the real-gain method of calculation, and in inheritances of a primary residence a 95% reduction on the charge is available. At BMC we calculate the most favourable method, submit the self-assessment to the OPAEF and challenge unlawful assessments with a proven track record. For the full tax position of the transaction, including personal income tax (IRPF) and the Andalusian inheritance tax, see our tax planning section.

The OPAEF and the IIVTNU in Seville: procedure and jurisdiction

The Organismo Provincial de Asistencia Economica y Fiscal (OPAEF) is the autonomous body that administers the taxes of Seville City Council and many municipalities in the province of Seville. For IIVTNU in the city of Seville, the OPAEF acts as the delegated administrator with full authority for management, collection and first-instance review.

The typical process is as follows:

1. The taxpayer submits the self-assessment to the OPAEF within the statutory deadline.
2. The OPAEF may carry out a compliance check of the self-assessment, particularly when the real-gain method is used.
3. If discrepancies are found, it issues a draft provisional assessment that the taxpayer may accept or challenge.
4. The administrative appeal (recurso de reposicion) is lodged with the OPAEF itself; if dismissed, the economic-administrative claim is lodged with the TEAR of Andalusia (Seville seat).

Self-assessments may be submitted in person at the OPAEF offices at Calle Conteros, 8 (city of Seville) or processed through the electronic registry (opaef.es), where IIVTNU self-assessment forms are available.

The two IIVTNU calculation methods in Seville since 2021

Objective method

The tax base is calculated by multiplying the cadastral land value (the figure shown on the IBI receipt as “valor catastral del suelo”) by the coefficient corresponding to the holding period, as approved by Seville City Council in its annual fiscal ordinance.

Maximum statutory coefficients under Real Decreto-ley 26/2021:

The resulting tax base is then multiplied by the tax rate approved by Seville City Council in its fiscal ordinance.

Real-gain method

The tax base is the difference between the transfer value and the acquisition value of the property, weighted by the proportion that the cadastral land value represents of the total cadastral value. The same tax rate applies as under the objective method.

The taxpayer may choose the method producing the lower charge. BMC calculates both before submitting the self-assessment.

The 95% reduction for the primary residence in Seville inheritances

The 95% reduction on the IIVTNU charge is the most significant fiscal measure for inheritances in Seville. Its requirements are:

1. The property transferred must have been the deceased’s primary residence in the two years preceding death.
2. The acquirer must be the surviving spouse, a child, or a parent of the deceased.
3. The reduction must be expressly requested in the self-assessment, with a certificate of the deceased’s municipal registration or equivalent documentation.

Example: an heir in Seville (child of the deceased) inherits the family flat in Los Remedios. The cadastral land value is 100,000 euros and the holding period was 25 years (coefficient 0.06). Tax base = 100,000 x 0.06 = 6,000 euros. Tax rate: 28%, giving a gross charge of 1,680 euros. With the 95% reduction: 84 euros.

Without the reduction, the heir would pay 1,680 euros. The difference is considerable and fully justifies specialist advice.

Exemption for mortgage foreclosure (dacion en pago) in Seville

National legislation (art. 105.1.c TRLHL) exempts from IIVTNU transfers of a primary residence made by insolvent mortgage debtors to extinguish the mortgage debt with the lender. This exemption applies in Seville and requires no further approval from the OPAEF.

The cadastral revaluation in Seville and its impact on the plusvalia municipal

Seville has undergone various cadastral value updates in recent years, particularly in the Casco Antiguo, Nervion, Los Remedios and some northern expansion areas (Pino Montano, Torreblanca). When the cadastral land value rises, the tax base under the objective method increases proportionally.

This means that for properties in Seville that have been subject to a recent cadastral revaluation, the objective method may be more expensive than expected, while the real-gain method (based on the actual gain) may be more advantageous, especially where the revaluation is moderate.

At BMC we have access to up-to-date cadastral values for all Seville neighbourhoods and calculate both methods using the precise data for each transaction.

Self-assessment deadlines and late-payment surcharges at the OPAEF in Seville

Late filing gives rise to surcharges: 5% if under 3 months without a prior demand; 10% up to 6 months; 15% up to 12 months; 20% beyond 12 months, plus statutory interest in all cases.

Claims for plusvalia municipal in Seville

For transactions carried out before the 2021 reform in which plusvalia was paid with no actual gain, or where Seville City Council issued an assessment higher than the correct amount, the following avenues are available:

• Real loss: if the sale price was equal to or lower than the acquisition price, a refund may be sought within the four years following payment by way of rectification of the self-assessment.
• Outstanding Seville City Council assessments: administrative appeal before the OPAEF and, if dismissed, economic-administrative claim before the TEAR of Andalusia.
• State liability: in very specific cases involving final assessments issued under the system declared unconstitutional by STC 182/2021.

See the article on the Constitutional Court ruling and the current status of the plusvalia municipal and the plusvalia municipal calculation guide.

BMC has representation in Seville. Learn more about our Seville representation for local assistance.