May 18, 2006 at 6:37 pm #51829
Please can somebody explain the 7% you have to pay when purchsing a property in simple terms as we are in the prcess of buying a house in Benitchell and are totally baffled by it all and do not want to get ripped off by the estate agents or anyone else for that matter. If possible can anybody but me in touch with a good trustworthy solicitor around this area. Any advice would be appreciated very much 😆
May 19, 2006 at 8:05 am #62262mariosParticipant
Take a look at this website
May 19, 2006 at 2:44 pm #62270
I think you must be thinking of the 7% VAT if its a new purchase or the 7% transfer tax if its a secondhand property. You cant avoid paying the 7% on new build or secondhand and it would be added to the price of the property and paid to the government.
Hope this is what you mean.
May 23, 2006 at 1:06 pm #62353
Good solicitor – Angel Poveda based in Valencia with office in Javea. If you want his number drop me a line
May 23, 2006 at 2:53 pm #62361
With regards to the 7% transfer tax i know you have to pay it but is it 7% of the purchase deeds or on the amount you pay for it i am really confused because every estate agent i speak to tells me something different. Any help is very much appreciated 😳
May 23, 2006 at 9:27 pm #62372
It will be on the amount stated in the escitura..which is why estate agents try to convince you its benefical to pay black money as you pay less tax too….
May 24, 2006 at 10:41 am #62373
the tax is paid on the declared amount. You should NEVER under declare your property – it is Fraud. As Heather says most agents will tell you to underdeclare, but all that happens is later on you have to sell it by underdeclaring. The government are clamping down on the practice now under duress from the EU.
One other point that you may be interested to know. As of recently the Guardia Civil have the right to enter any Notary’s office at any time and any cash changing hands is assumed to be black money – all parties concerned then have to prove the money is legitimate or all parties concerned are charged with fraud. It doesnt happen often yet – but as sure as eggs is eggs and now that next year Spain loses most of its EU fundung you can guarantee that it will be clamped down heavily
So in answer to your question you pay 7% on the declared amount. However this should always be the same as the amount paid (but seldom is)
Hope this helps
May 24, 2006 at 3:43 pm #62383
The idea of the Guardia Civil intervening at the a notarial office conjures a wonderfully vivid image of families dressed in Sunday best, tugs of war with stuffed brown paper envelopes, shouts, pushes, flying handbags, and finally pistols drawn. It would make a wonderful scene in a Spanish sitcom.
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