municipal surplus value

municipal surplus value


The benefit obtained as a result of a positive difference between the price at which a good was purchased and the price of its sale in an economic operation or transaction.



From a tax point of view, capital gains are taxed as a tax known as Tax on the Increase in Value of Urban Land, IIVTNU, is a municipal tax that taxes the increase in value of the land at the time of transmission. To highlight: there is a building or not that is taxed is the land.



It is paid by the seller of a property that is the one who transfers the property and will have 30 business days to pay it.

But if it is a donation, bequest or inheritance, it will be the donee or heir whoever paid the tax and the first will have 30 business days and the heirs 6 months and one more year of extension.


municipal capital gain



In October, the Constitutional Court, in October 2021, annulled the municipal capital gains tax, considering that its calculation method went against the principle of economic capacity.

However, on November 10, an Official Gazette came into force that determines new methods to calculate the amount that must be paid for this tax.

For the payment of the quota, the municipal tax is applied according to the taxable base.

What has changed is how this tax base is calculated in application of the STC October 26, 2021.

For the calculation of the base the taxpayer you can choose between:

  1. surplus value real, calculated based on the difference between the acquisition value of the land and the sale value. Then, it estimates the percentage of said gain that corresponds to the land and multiplies it by the corresponding tax rate according to the municipality, which should never exceed 30 percent.
  2. a new system aim that will reflect the evolution of the real estate market. It takes into account the cadastral value of the land, a coefficient that estimates the increase in value of the land from the time it was acquired until it was transferred, and a tax rate determined by each municipality.

This second possibility allows taxation based on the real capital gain obtained at the time of the transfer of a property. If the taxpayer demonstrates that the real capital gain is lower than that resulting from the method of objective estimate, you can apply the real one.

  • The Municipal Capital Gain Tax will not be paid if you do not make a profit

Until now, the system that was used meant that you had to pay even when there was a loss of value.

The Constitutional Court has recently ruled again, in October 2021, but we consider at least sales with a loss or without a profit can continue to be claimed.

Capital gains are unconstitutional if your property has been sold at a loss or if there has been no profit. 

Even if you have sold at a profit, the capital gain is miscalculated and you could file a supplementary return

From now on "a new assumption of non-subjection is introduced for cases in which it is verified, at the request of the interested party, that there has not been an increase in value"

The interested party must accredit If there is no increase in value, you must declare the transfer, as well as provide the titles that document the transfer and acquisition.

To verify the non-existence of an increase in value, as a transfer or acquisition value, the make it older from among the one that appears in the title documenting the operation or the one verified, where appropriate, by the Town Halls.



If you have paid the tax on the transfer of a property without an increase in the value of the land, or with losses; and the sale took place up to 4 years ago, you can claim


We process your claim, if they refuse or do not answer in two months After claiming the municipal capital gains, the next step is to go to court and file a lawsuit. It would be a contentious administrative appeal.

I advise you to be assisted from the beginning by a lawyer.

Get in touch with us, we can process your claim and your demand. Call us or send a message via WhatsApp….

  • Capital gains generated in less than a year are now taxed

Also as a novelty, capital gains generated in less than one year will be taxed, that is, those that occur when less than a year has elapsed between the date of acquisition and transmission and, therefore, may be more speculative in nature.


This article has been written by our legal expert Guadalupe Rosique López. Practicing Collegiate Lawyer No. 1,488
Cartagena Bar Association