Spain imposing new property tax on overseas residents

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This topic contains 11 replies, has 6 voices, and was last updated by Profile photo of Chopera Chopera 5 years, 5 months ago.

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  • #56287
    Profile photo of angie
    angie
    Spectator

    Had an email from EOS about punitive new property taxes being conjured up by Spain just to make things worse for overseas residents, ‘shoot themselves in the foot’ Spain again it seems.

    Anyone had any experience of this or know more about it? 🙄

  • #105357
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    Hi Angie, could you post the email here? was there a link to a article or thread?

  • #105360
    Profile photo of katy
    katy
    Spectator

    In here

    http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483

    Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!

  • #105362
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @katy wrote:

    In here

    http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483

    Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!

    I assume it was done to the minimum declared price? How much did you have to pay around 3.500 sterling in ‘extra tax’?

  • #105365
    Profile photo of Chopera
    Chopera
    Participant

    This is the “catastral” tax that has been around for years. Each council has a formula to value properties and they use it to set this tax. It doesn’t matter what you actually paid for the property, they will value it according to their formula, and set the tax accordingly. If you declare less than their valuation then they might turn a blind eye or they might pursue. It looks like they are now pursuing a backlog of property transactions. However I expect they are now pursuing everybody – they are not just targeting expats in particular. It is (understandably) typical of expat communities/media to think they when they get ripped off by the Spanish state then it’s because they are soft targets. Don’t worry, Hacienda will persecute anyone regardless of their background/situation. If it’s any help, the more you hate Hacienda the more integrated into Spanish society you have become 😉

  • #105366
    Profile photo of Chris McCarthy
    Chris McCarthy
    Participant

    @chopera wrote:

    If it’s any help, the more you hate Hacienda the more integrated into Spanish society you have become

    Oh dear… that is just so true.

    I wish it wasn’t, but it just is.

  • #105372
    Profile photo of katy
    katy
    Spectator

    @fuengi wrote:

    @katy wrote:
    In here

    http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483

    Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!

    I assume it was done to the minimum declared price? How much did you have to pay around 3.500 sterling in ‘extra tax’?

    Yes on each house 😈 Would have been 7%, was pesetas then. We looked on the bright side in that we had got a bargain. We heard about 3 months after purchase. I got my revenge when selling at a good profit re.CGT 😉

    I believe that there is no need for unpleasant suprises nowadays as it is possible to get the official valuation figure before purchase.

    Just to add it affects the seller too when CGT is calculated, they could be deemed to have made a profit even if they made a loss!

  • #105375
    Profile photo of Anonymous
    Anonymous
    Participant

    This is why I asked i n the other thread: if one deals with buying a property from a bank, can the Hacienda be convinced by the bank that the stated price is the real one? Would Hacienda doubt the bank?

  • #105376
    Profile photo of Fuengi (Andrew)
    Fuengi (Andrew)
    Participant

    @flosmichael wrote:

    This is why I asked i n the other thread: if one deals with buying a property from a bank, can the Hacienda be convinced by the bank that the stated price is the real one? Would Hacienda doubt the bank?

    Got nothing to do with trust. see other thread

  • #105377
    Profile photo of katy
    katy
    Spectator

    We bought from a bank and declared full purchase price so clearly they doubted the Bank. Hacienda rules 🙂

  • #105400
    Profile photo of angie
    angie
    Spectator

    Thanks katy for posting that link to Fuengi, yes it was the same story from EOS. Couldn’t get back to you Fuengi as trouble with computer and a bit busy away from home at present too.

  • #105401
    Profile photo of Chopera
    Chopera
    Participant

    @katy wrote:

    @fuengi wrote:
    @katy wrote:
    In here

    http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483

    Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!

    I assume it was done to the minimum declared price? How much did you have to pay around 3.500 sterling in ‘extra tax’?

    Yes on each house 😈 Would have been 7%, was pesetas then. We looked on the bright side in that we had got a bargain. We heard about 3 months after purchase. I got my revenge when selling at a good profit re.CGT 😉

    I believe that there is no need for unpleasant suprises nowadays as it is possible to get the official valuation figure before purchase.

    Just to add it affects the seller too when CGT is calculated, they could be deemed to have made a profit even if they made a loss!

    Yes we were given the figure in the notario’s office when we bought a flat last year. So we declared that figure as the purchase price, even though it was more than what we paid.

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