The recent ruling of the Constitutional Court of February 16, 2017 declares that it is contrary to the principle of economic capacity that must preside over the collection of taxes to demand the Tax on the Increase in Value of Urban Land in those cases in which it can be proven that a property has been sold at a loss and that therefore there is no such capital gain.
Although the ruling refers to the foral rule that regulates the tax in Guipúzcoa, it is foreseeable that it will be pronounced in the same sense with respect to the rule that regulates the tax in the common territory.
Our firm has contested numerous tax assessments in cases similar to the one referred to in the ruling.