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I know this subject has been raised before. Can anybody tell me once and for all what is the way the new law is being applied with regards to the declared value when purchasing property in Spain? My understanding is that since the new law was passed in January it is now illegal to underdeclare and you will be fined heavily if you do this . My question is this does this apply to the whole of Spain or just parts. This may seem a stupid question to ask but I am trying to purchase a house and I have seen many I like but when I ask the question what are you declaring at – the answer is almost always 40%-60% of the purchase price. When I say how can you this is illegal now, the stock answer is “this is Chiclana and everybody does it its not like the rest Of Spain”. Is this correct? My understanding of the new law is that you have to supply a copy of the private contract which has the real price of the property stated to the Notary who in turn then passes this onto Hacienda. Is this correct? If so how can these people get away with this?
Please has anybody completed in Chiclana since January and did they have to supply a copy of the private contract in front of the Notary.
Would be grateful to hear from anyone who has recently completed a sale in Chiclana since the new Law was applied or who has any advice whatever on this subject.
You can always PM if you prefer.
Thanks
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Dear Guest,
It was illegal before to underdeclare, nothing has changed really.
A different matter is If now the Spanish Authorities will take a more active stance at this common practice.
If you underdeclare you are taking a risk, so it is up to you. It benefits the vendor, not the buyer because you are paying off his taxes.
It just better to pay 7% VAT now than rather 35% CGT in a near future when selling on your property.
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Bearing in mind it’s ilegal, no matter how widespread it might be, no more than 15%, tops. Besides, Hacienda will implement new wys tomake sure the figure of the private contract matches that of the title deed, so you might get your fingers burnt.
It is too risky at present. I would avoid it all together, that’s my professional advice. Do not underdeclare. Only you will be fined when caught.
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Bearing in mind it’s ilegal, no matter how widespread it might be, no more than 15%, tops. Besides, Hacienda will implement new wys tomake sure the figure of the private contract matches that of the title deed, so you might get your fingers burnt.
It is too risky at present. I would avoid it all together, that’s my professional advice. Do not underdeclare. Only you will be fined when caught.
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