The Supreme Court has recently decided if a person who agrees to pay a plusvalia tax upon purchasing a property, even when from a legal point of view the other party is liable of such payment, is entitled to claim a refund when several requirements are met.

The appealing party – the Leganes Town Hall – disputes the entitlement of the purchaser on the basis that since he is not legally liable of such tax, any private agreement made between buyer and seller has no legal effect towards the Authorities and must be limited between both parties as per the Spanish General Tax Law.

The Supreme Court has recognised entitlement exclusively on municipal/local taxes when both parties agree that the non-liable party defrays the payment following an agreement or contract amongst them.