The Spanish Tax System - Local Taxes

1. General overview.
2. Tax on Economic Activity.
3. Real Estate Tax.
4. Municipal taxation of the increase in value of urban land.

LOCAL TAXES

1. GENERAL OVERVIEW.

1.1 Legislation.

• Law 39/1988, dated December 28, Local Administration Act.

1.2 General characteristics and types

Local taxes are classified by virtue of whether local entities (provinces, municipalities, town halls) may or must levy them and are of the following nature:

Obligatory Taxation:

• Tax on Economic Activity.
• Tax on Real Estate.
• Tax on Mechanical Traction Vehicles.

Discretionary Taxation:

• Tax on Construction, Installations and Works.
• Tax on the Increase in the Value of Urban Land.