The term capital gains is understood as the increase in value that a good experiences for reasons beyond the owners of it. This increase in value generates a gain or benefit.

Origin of the term “capital gains”.

Although the concept of “Surplus value” (or “capital gains”) has been widely used and outlined by the German philosopher, journalist and economist Karl Marx, the term was first coined by the English economist, David Ricardo.

Capital gains as a tax

The concept “Capital gains” is very extensive, but when value changes refer to real estate, these changes are reflected in the Personal Income Tax or in the Corporate Tax, depending on who is the owner of the goods. This is because if the value of the property varies, its value for tax purposes will also do so.

In addition, sales or donations are usually taxed by a local tax called “Tax on the increase in value of urban land”. This tax is commonly known as “Capital gains” or “Municipal capital gains”.

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