What is Plusvalía Tax ? Who is liable to pay it?

This tax is paid to the local administration and is based on the increase in the value of the land since it was last sold.

The Law states that the seller is responsible for paying the Plus Valía. However, some Sales Contracts stipulate that the buyer is responsible. This is an important issue during negotiations over the terms and conditions of the Sales Contract and it is essential to consult your lawyer before making any agreement on this point.