Plus Valia

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This topic contains 6 replies, has 6 voices, and was last updated by Profile photo of petej petej 6 years, 10 months ago.

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  • #55379
    Profile photo of Anonymous
    Anonymous
    Participant

    Got a letter in the post today at home in the UK.

    A bill for my Plus Valia for my sale of property in March, 284 Euros plus a 10% fine for not paying. If I didn’t still have my main holiday home I’d throw it in the bin.

    I went to the town hall within the 30 day sale period to pay the Plus Valia. Total load of idiots, I got fed up telling that I am responsible for the bill, they claimed it was the buyer that pays. Anyway after 1 hour of arguing (through my Spanish wife) that it really is my responsibilty and can they should give me the bill I gave up.

    Now I have the bill and a 10% fine. How the F&*&ck does Spain really function. All I ever see is incompetence everywhere.

    I owned the property for 20 months and the Plus Valia has been calculated at 284 Euros.

    The developer paid 175 Euros when I completed. He must have bought the land around 2001-2002 as I signed for phase 2 of the development in 2004 when it was under construction.

    Anyway being conservate. He owned the land for 4 years. I owned it (when land prices are falling) for 20 months.

    His Plus Valia calculation is 3.64 Euros for every month
    My Plus Valia calculation is 14.2 Euros for every month

    An increase of 4 or 400% in the tax.

    Yes a bit simplistic, but I really would like to know how it’s being calculated.

  • #95942
    Profile photo of Anonymous
    Anonymous
    Participant

    Like everything in Spain nobody knows it. I maybe mas o minus. My understanding is that it based on the increase value of the land since it last exchange ownership and not the building on it.

    Who, pays for it ? also depends what was stated in the contract i.e. you had to pay or the Vendor.

    I, have a feeling that it could be based on the cadastral value of the land this is only my hunch. I may be totally right or totally wrong and since it is Spain, pasa nada.

  • #95965
    Profile photo of Inez
    Inez
    Participant

    You are correct Shakeel, its based on the value of the land from prior ownership until new ownership, usually the buyer pays it UNLESS agreed otherwise.

    There is some method to calculate this and from recollection it is subject to a minimum amount – I had a property about to complete when there was a change in price only by 500 euros but it didnt affect the plus valia at all!

    Need to check with a lawyer as they should know exactly!!

  • #95983
    Profile photo of Anonymous
    Anonymous
    Participant

    @inez wrote:

    usually the buyer pays it UNLESS agreed otherwise.

    It is incorrect to say that plusvalía is usually paid by the buyer UNLESS agreed otherwise. It is the exact opposite. The taxes and associated costs of a purchase that fall on a buyer are the purchase tax (compraventa),IVA, notary and registry costs, but the plusvalía is a tax on the land value difference between purchase and sale date and falls on the seller UNLESS agreed otherwise and no buyer should ever agree to assume responsibility for it. At times of price rises or in cases when a property has been in the same ownership for many years it can be a very large amount. In one transaction I was involved in where the property had been owned for thirty years plusvalía was €30,000.

    Who pays what should be settled when the price is being negotiated and the easy way to ensure correct procedure is for the contract to stipulate that costs and taxes will be paid ‘según ley’ as the law is that the seller pays plusvalía and the buyer pays everything else.

  • #95992
    Profile photo of Inez
    Inez
    Participant

    Ooops – Ive just been reading my sellers agreements and you are correct! Sorry! Teach me to rush something..

  • #95993
    Profile photo of Sonsoles
    Sonsoles
    Participant

    Phew! I was getting a bit worried there……

    Thanks for the clarification.

    Sonsoles

  • #95995
    Profile photo of petej
    petej
    Participant

    @bdwood wrote:

    It is the exact opposite. The taxes and associated costs of a purchase that fall on a buyer are the purchase tax (compraventa),IVA, notary and registry costs, but the plusvalía is a tax on the land value difference between purchase and sale date and falls on the seller UNLESS agreed otherwise and no buyer should ever agree to assume responsibility for it. At times of price rises or in cases when a property has been in the same ownership for many years it can be a very large amount. In one transaction I was involved in where the property had been owned for thirty years plusvalía was €30,000.

    Who pays what should be settled when the price is being negotiated and the easy way to ensure correct procedure is for the contract to stipulate that costs and taxes will be paid ‘según ley’ as the law is that the seller pays plusvalía and the buyer pays everything else.

    That’s exactly how we were told it worked by our lawyer, there’s plenty on the web to this effect

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