Declared Value Again.

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This topic contains 5 replies, has 2 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 10 months ago.

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  • #51540
    Profile photo of Anonymous
    Anonymous
    Participant

    I know this subject has been raised before. Can anybody tell me once and for all what is the way the new law is being applied with regards to the declared value when purchasing property in Spain? My understanding is that since the new law was passed in January it is now illegal to underdeclare and you will be fined heavily if you do this . My question is this does this apply to the whole of Spain or just parts. This may seem a stupid question to ask but I am trying to purchase a house and I have seen many I like but when I ask the question what are you declaring at – the answer is almost always 40%-60% of the purchase price. When I say how can you this is illegal now, the stock answer is “this is Chiclana and everybody does it its not like the rest Of Spain”. Is this correct? My understanding of the new law is that you have to supply a copy of the private contract which has the real price of the property stated to the Notary who in turn then passes this onto Hacienda. Is this correct? If so how can these people get away with this?

    Please has anybody completed in Chiclana since January and did they have to supply a copy of the private contract in front of the Notary.

    Would be grateful to hear from anyone who has recently completed a sale in Chiclana since the new Law was applied or who has any advice whatever on this subject.

    You can always PM if you prefer.

    Thanks

  • #60801
    Profile photo of Anonymous
    Anonymous
    Participant

    Dear Guest,

    It was illegal before to underdeclare, nothing has changed really.

    A different matter is If now the Spanish Authorities will take a more active stance at this common practice.

    If you underdeclare you are taking a risk, so it is up to you. It benefits the vendor, not the buyer because you are paying off his taxes.

    It just better to pay 7% VAT now than rather 35% CGT in a near future when selling on your property.

  • #60805
    Profile photo of Anonymous
    Anonymous
    Participant

    Draken I agree with you and I would do this if only I could get somebody to declare the full value of the house they are selling. Without exception must want to declare only 40-60% of the true value.

  • #60806
    Profile photo of Anonymous
    Anonymous
    Participant

    Then revise your offer to take into consideration this underdeclaring (only pay them 65% of the black money), you will end up by paying it one day.

  • #60840
    Profile photo of Anonymous
    Anonymous
    Participant

    Bearing in mind it’s ilegal, no matter how widespread it might be, no more than 15%, tops. Besides, Hacienda will implement new wys tomake sure the figure of the private contract matches that of the title deed, so you might get your fingers burnt.

    It is too risky at present. I would avoid it all together, that’s my professional advice. Do not underdeclare. Only you will be fined when caught.

  • #60841
    Profile photo of Anonymous
    Anonymous
    Participant

    Bearing in mind it’s ilegal, no matter how widespread it might be, no more than 15%, tops. Besides, Hacienda will implement new wys tomake sure the figure of the private contract matches that of the title deed, so you might get your fingers burnt.

    It is too risky at present. I would avoid it all together, that’s my professional advice. Do not underdeclare. Only you will be fined when caught.

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