Today we explain an approximate way to calculate the municipal capital gain of your apartment or house. Goodwill takes into account different variables for each dwelling but there are usually fixed variables that are the following:

• Cadastral value: It is the basis for calculating goodwill. It is an administrative and objective value that each home has. This value can be found on the receipt of the amount of real estate (IBI).
• Years elapsed between purchase and sale: Goodwill also takes into account the time that has elapsed since we acquired the property. Therefore, depending on the months that have passed, the value will be different. We must bear in mind that after 20 years, the value will not change.
• Housing municipality: This tax depends on the municipalities; Therefore, depending on the municipality where the property is located, different types of values or variables can be applied.

Steps to calculate surplus value

• First of all we must calculate the tax base. To obtain it, we must multiply the coefficient of the annual increase by the number of years since the purchase (remember that it can be a maximum of 20).
• When we have the final coefficient we must apply it to the cadastral value of the property to obtain the tax base.
• Finally, we should only multiply the tax base by the corresponding tax rate (which also varies by municipality) but in general it is usually about 30%.