Municipal Capital Gains in 2026: How to Optimise IIVTNU When Selling a Costa del Sol Property

The first method —objective— calculates the tax base by applying a coefficient to the cadastral value of the land based on years of ownership. Coefficients are updated annually by Royal Decree-Law 26/2021 (revised in the 2026 Budget Law). For a 10-year holding in Marbella, the current coefficient is 0.14: if cadastral land value is €200,000, the objective tax base would be €28,000.

The second method —real— calculates the effective capital gain: difference between sale value and acquisition value, multiplied by the cadastral percentage attributable to land (not construction). If a property bought for €1.1M is sold at €1.4M with 30% cadastral land portion, the real tax base is (1,400,000 − 1,100,000) × 0.30 = €90,000.

The taxpayer can choose the less burdensome method. In moderate appreciation operations, the objective method usually results more favourable. In aggressive appreciations (typical in Marbella 2020-2026), the real method usually saves money. The choice must be documented in the IIVTNU self-assessment within 30 days of signing.

Three situations exempt from IIVTNU: absence of real increment (when sale value is below acquisition value), transmission by death between spouses and direct-line descendants (with 95% IIVTNU bonus in most Andalusian municipalities), and intra-group operations in companies under the special regime.

The most effective strategy for large appreciations is planning the sale with specialised tax advice: adjusting sale timing to reduce computable years, evaluating inter-vivos donation to children prior to sale (sum of two smaller bases frequently lower than a single one), or structuring sale through a pre-existing patrimonial company.