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Mijas residents will save 4.5 million euros annually with the new capital gains ordinance

  • Citizens will have the choice between two tax calculation systems
  • This new ordinance allows in Mijas a saving of 26.21% for citizens |

The 95% reduction that applies to heirs is maintained

At the ordinary plenary session in June, the Treasury Councillor, Roy Pérez (PSOE), defended the motion proposing the provisional approval of the modification of the ordinance regulating the Tax on the Increase in Value of Urban Land (plusvalía). "This new ordinance allows in Mijas a saving of 26.21% for citizens. With this measure, taxpayers will save around 4.5 million euros per year, in the majority of sales and purchases," said Pérez, who added that "the new ordinance maintains a 95% bonus that applies to heirs, and the tax is updated to 30% based on decree 26 of 2021".

Pérez also pointed out that with this new ordinance, the taxpayer will be allowed to choose between two methods of calculation "on the taxable base, having the option of paying the real capital gains tax on the land, which is the difference between the sale price and the purchase price if this is lower than the taxable base proposed by the Town Hall".

The non-attached Councillor Carlos Rivero asked the Town Hall to remove the requirements for accessing the bonuses: "I think it is quite unfair that a person, after losing a family member and inheriting the property that they are entitled to, should have to continue paying taxes". In response, the government team pointed out that the Mijas Town Hall is one of those that offer the most tax relief in matters related to inheritance. "Mijas is one of the few town halls that grants up to 95 % in inheritance matters. I think it is a measure that leaves practically a small residual part of the population who cannot benefit from this tax reduction, but we are fortunate that, in Mijas, citizens can receive up to 95 % tax relief", said Pérez.

This provisional approval of the Tax Ordinance modification of the Tax Ordinance regulating the Plusvalía went ahead with the votes in favour of PSOE, Ciudadanos, and the abstention of the rest of the corporation, except the non-attached Councillor, Carlos Rivero, who voted against.  
 

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