Municipal Plusvalía Tax in Mallorca: What’s Happening in 2025?

The expected increase in the municipal plusvalía tax for 2025 is no longer in effect—at least for now. Originally, the Spanish government updated the tax coefficients through Royal Decree-Law 9/2024, significantly raising the cost of the tax under the objective calculation method. However, since the decree was not validated by Congress, the changes have not been implemented, meaning the 2024 coefficients are still in place.

So, what does this mean for property owners in Mallorca? And can you claim a refund if you’ve overpaid? Let’s break it down.

First things First, What Is the Plusvalía Tax?

The plusvalía municipal is a tax applied when selling a property, based on the increase in the land's value during the time you’ve owned it. It’s one of the biggest expenses when selling real estate in Mallorca, particularly for long-term property owners.

In 2021, the Spanish government reformed the tax following a ruling by the Constitutional Court, which found the previous system unfair. The old model assumed all properties increased in value, even if they were sold at a loss.

What Was Supposed to Happen in 2025?

Under Royal Decree-Law 9/2024, the coefficient multipliers for calculating the plusvalía tax were set to increase in 2025. This would have meant significantly higher tax bills for many property owners.

For example:
- If you had a property with a cadastral land value of €100,000, and you sold it after 9 years, your plusvalía tax would have increased by 40%, from €4,500 in 2024 to €6,300 in 2025—a €1,800 jump.

However, since Congress rejected the decree, these increases haven’t gone into effect—yet.

2024 vs. 2025 Tax Coefficients

If the decree had passed, here’s how the multipliers would have changed:

With these increases, longer ownership periods would have been hit hardest, leading to much higher tax bills for sellers in Mallorca and across Spain.

Allright Got It, but What Happens Now?

Since the new tax coefficients were not approved, the 2024 rates remain in effect. But this doesn’t mean the government won’t try again. Tax experts believe a new decree could be introduced later in 2025, bringing back the higher coefficients.

Additionally, the progressive tax increases on capital gains have already raised the tax rate to 30% from January 2025. Other changes include:

• Elimination of inflation adjustments, meaning you’re taxed on the full nominal profit, even if inflation reduced your real gains.
• Phasing out of old tax reductions for properties purchased before 1994, removing previous tax breaks.

Can You Get a Refund?

If you’ve already paid a plusvalía tax based on the higher 2025 coefficients, you may be able to claim a refund. Since the decree was never validated, local councils in Mallorca should still be applying the 2024 rates.

To check your eligibility:
1. Review your tax payment—see if it was calculated using the rejected 2025 rates.
2. Contact your local Ayuntamiento (Town Hall)—ask for clarification on the applied coefficient.
3. Consult a tax expert—many lawyers in Mallorca specialize in property tax disputes.

Final Thoughts

For now, Mallorca property owners can breathe a little easier, knowing that the expected 2025 plusvalía tax increase isn’t in effect. But the risk isn’t gone. The government could introduce a new decree later in the year, meaning sellers should stay informed and plan ahead.

If you’re thinking about selling a property in Mallorca, now may be the right time to avoid potential future tax hikes. Stay updated, know your rights, and always check the latest tax changes before making a move.

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image: Pedro Sánchez, presidente del Gobierno, y María Jesús Montero, ministra de Hacienda / GTRES