DIFFERENCE IN VALUE BETWEEN PRICE PAID AND ESCRITURA VALUE

[Anonymous]

We paid 180,000 euros for our property, but on the deeds the value is 20,000. Do you think

a) this is reasonable in Spain – what sort of values do other people have
b) should we use this value for calculating taxes or use the higher catastral value?

many thanks

[Inez]

My goodness! How long ago was that? Its illegal to underdeclare and although the authorities were tunring a blind eye to around 20% underdeclaration, now theres no way its allowed!

You will need to use the higher catastral value and when/if you decide to sell, you may well be lumbered with the captial gains tax on the profit, even though its effectively your money!

[Anonymous]

Yes, it’s totally amazing – it was only 4 years ago we bought it. Hopefully we won’t be selling until we’re over 65!! He was very crafty who we bought it off and the solicitor wasn’t much better.

[Anonymous]

Hi Inez
Why should we use the catastral value instead of the escritura value? The solicitor who did it the first year used the escritura value?

[Author]

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