La Torre provides a 95% tax relief on capital gains for family inheritances

The City Council of La Torre de Esteban Hambrán has finalized the modification of the Fiscal Ordinance Regulating the Tax on the Increase in Value of Urban Land (IIVTNU), commonly known as the municipal capital gains tax (plusvalía). The agreement, adopted after no claims were filed during the public exhibition period, is published in the Official Gazette of the Province of Toledo, number 166, dated September 1, 2026, page 17, with reference No. I.- 3865.

The reform eliminates the minimum of 20 euros required as the net quota after applying the bonus and keeps intact the 95% bonus of the gross quota for transfers due to death in favor of direct relatives. The text is made public in compliance with article 70.2 of Law 7/1985, of April 2, Regulating the Bases of the Local Regime.

What changes in Article 8

The modification affects only Article 8 of the ordinance. The final paragraph, which established that the net quota resulting from the application of the bonus to the gross quota would be a minimum of 20 euros, is removed. With this removal, the 95% bonus is applied without a minimum collection amount.

Article 8 is now drafted with the following scope of the bonus, which applies to transfers of land and the transfer or constitution of real rights of enjoyment limiting ownership carried out gratuitously due to death in favor of:

• descendants and adoptees;
• spouses;
• ancestors and adopters.

Processing and appeals

The initial plenary agreement was submitted for public exhibition without any claims being filed, therefore it was automatically finalized. An administrative-law appeal may be filed against the agreement before the Administrative Chamber of the High Court of Justice of Castilla-La Mancha, within a period of two months starting from the day following the publication of the announcement, in accordance with article 46 of Law 29/1998, of July 13, of the Administrative-Law Jurisdiction.

The announcement appears signed in La Torre de Esteban Hambrán on August 24, 2026, by the mayor, Francisco Javier Merino Molinet.

Impact for residents

With this modification, residents of La Torre de Esteban Hambrán who receive a home or land as an inheritance from a direct relative will pay only 5% of the gross quota of the capital gains tax, as the city council no longer requires a minimum quota of 20 euros. The measure reduces the tax burden on mortis causa transfers within the family nucleus and simplifies the application of the bonus, in line with the trend of municipalities in the province of Toledo to alleviate the cost of inheritances.

Source: Official Gazette of the Province of Toledo, number 166, September 1, 2026, page 17 (official reference: No. I.- 3865).