Municipal capital gains tax on an inherited property
The forgotten tax. It is paid to the town hall, it is separate from inheritance tax, and since the reform you can choose the more favourable calculation method.
What it taxes
It taxes the increase in value of the land under urban property on transfer. It does not tax the building or the total value of the property.
On an inheritance it falls due at the date of death, and the heirs pay it to each town hall where an urban property is located.
The two methods
The objective method applies coefficients to the cadastral land value based on years elapsed. The real method takes the difference between the acquisition and transfer values, apportioned to the land.
Comparing both in every case is essential: the gap can be significant.
When nothing is due
Where there has been no real increase in value between acquisition and transfer, no tax is due. Many town halls do not apply this automatically: it must be invoked and evidenced.
Municipal allowances also exist, commonly for the deceased’s main home passing to descendants or spouse. They vary by municipality and usually require an express application.
Tell us about your case
First assessment at no cost. We tell you whether you have a case, what deadlines apply and what it would cost.
About this guide.
Is this the same as inheritance tax?+
No. They are separate taxes with separate authorities: inheritance tax is regional, this one is municipal. Both are payable and both have their own deadline.