Around 35,000 in the province will be entitled to a refund

About 35,000 people in Malaga province will be entitled to claim a refund of ‘plusvalía’ tax, according to an estimate by the Tinsa valuation company.

Nationally, Tinsa believes the tax has been wrongly charged on about 550,000 property transactions, and points out that these are not just sales: the court decision also applies to gifts, exchanges and inheritance.

Malaga will be the fourth province in which the court decision will have the most impact, after Madrid, Barcelona and Alicante.

How will town halls respond to the court decision, and how should people apply for a refund if they believe they should not have been charged this tax on a property transaction? Joaquín López Avellaneda, a lawyer with Cuatrecasas, says that is a major question.

“In all probability, councils will probably continue to charge ‘plusvalía’ tax right up to the moment when the law is actually changed. If that is the case, and people are told they have to pay land added-vale tax on a property transaction, they should do so and then claim it back when the law is in force,” he says.