The Plusvalia Tax is a tax set by the local authorities and based on the increase of the value of the land from the date the owner acquired the property to the time of the present sale.

The local authorities determine the amount of plusvalía to be paid for each house purchase in Spain, depending on the area where the property is located. The market value or sales price of the property does not have an effect on the plusvalía tax.

Normally, but not necessarily, the seller pays the plusvalía tax. However, this will depend on the sales agreement. The tax is calculated according to the ratable value of the property and the number of years it has been in the ownership of the vendor.