re-valuation of property after renovcation

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This topic contains 2 replies, has 3 voices, and was last updated by Profile photo of Anonymous Anonymous 10 years, 3 months ago.

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  • #52206
    Profile photo of Anonymous
    Anonymous
    Participant

    Can anyone help? I am wondering if it is possible to get a property re-valued for tax purposes. Since buying it last year I have had quite a lot of renovation work done which has increased the value and at the moment if I decided to sell I’d be liable for capital gains on the full amount of the increased value. Any suggestions?

  • #65527
    Profile photo of Anonymous
    Anonymous
    Participant

    Hi Liz,

    I think we are in the same boat as you!

    We were told that we should get a new updated escitura, as the one we have at the moment shows a casa in “very bad condition” and that the tax is the increase minus the amount you have paid for renovation works.

    Hope this helps, I´d be very interested in any info you find out, although we are most definetly not planning on moving for the forseeable future!!

    Heather

  • #65528
    Profile photo of Anonymous
    Anonymous
    Participant

    You could ask someone like TINSA to do an independent valuation of your property as it is now (you can find their nearest office on the internet). As long as you have full records of your expenditure on the property which relates to any work done then you should be able to offset these costs prior to taxes being calculated. You may wish to check with a local accountant though to make sure which costs can be included. With regard to a new escritura I don’t see the need for such additional expenditure since TINSA, or whoever you may use, could include in their valuation report a comment regarding improvements having been done.

    Good Luck

    Terry English

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