Transfer tax (ITP)

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This topic contains 2 replies, has 3 voices, and was last updated by Profile photo of katy katy 7 years, 2 months ago.

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  • #55245
    Profile photo of Anonymous
    Anonymous
    Participant

    Watch out for robbery. I was led to believe both by textbooks, websites and even lawyers that Transfer tax at 7% is payable on the declared purchase price on the escritura and budgeted accordingly. I have just received a bill from the Junta Andalucia for a ‘top up’ payment as they say the transfer tax is due on the valor catastral, which in my purchase case is a higher value than the purchase price. Whilst appreciating in the past there has been widespread undeclaration of prices paid to save on transfer tax for the buyer and less gains tax for the seller, in my case it is simply that the market, as is well documented, a buyers market and there are endless numbers of distressed sales. The Junta do not care about this and claim to have every right under the Ley Tributaria to impose extra tax on non-existent money. Anyone else come accross this?Be warned if you think you find a bargain, the tax authorities will not care at all and rob you

  • #94601
    Profile photo of Anonymous
    Anonymous
    Participant

    Does not surprise me. This why the Spanish do not believe in being straight with authorities tax or otherwise.

    I am happy to say that here in UK we are also going sown this route.

  • #94602
    Profile photo of katy
    katy
    Spectator

    It happened to us in 1995/6 when we bought a bank repo’. I think I have posted on here before if you do a search. Hits sellers too as they won’t accept a low figure when calculting capital gains tax. They have their own figure and will not deviate. There is right to appeal but my Lawyer said it is unusual to win. Yes, they are robbing barstewards 👿

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