[jrwills20000]

HI there, we’ve just been landed with an extra €11,000 tax bill 3 years 6 months after we bought a property in rural andalucia. It states they value our property €120k more than we actually paid for it and therefore we now have to pay 8% tax on the difference.

No justification for their valuation and whilst we bought the property at a good price, there was no other interested parties and it had been on the market for a long time and i truly believe we paid the right priice. Can we/Should we appeal this or is this something that has to be taken on the chin?!

[Mark Stücklin]

Hi there,

This is what I call the Bargain Hunter Tax. I’ve never heard them taking so long to issue it. You can find out all about it here:

https://www.spanishpropertyinsight.com/tag/bargain-hunter-tax/

Also read about the experience of others here:

https://www.spanishpropertyinsight.com/discussion/topic-tag/bargain-tax/

[jrwills20000]

Many thanks Mark – our solicitor suggests its worth appealing the valuation and believes there is a good chance of saving 3-5k on a cost of around 2k for the architect and legal work. So we will give it a go.

Thanks

[Iain Henderson]

We had a similar situation here in Valencia province  and had to pay c8000 Euros eighteen months ago and within four years from our buying the property.

I think that they have up to four years from the purchase date to start the procedure to ask for more money. After discussion with various lawyers and advisers we were definitively told that we had to pay. If we do not pay then we were accruing further interest and eventually a debt would be added to the house so we bit the bullet and paid it. It makes selling a house with a debt on it very difficult

The eventual reason was that when we bought the house we had a small mortgage both in terms of amount and term. Therefore on the deeds was the bank valuation which was considerably more than the amount we paid but for tax purposes the authorities insist that the value was the banks and the tax had to be paid on that higher figure.

We do know off people in  a similar situation indeed one case were the owners had to pay over 25000E.

[jrwills20000]

Thanks for your insight Iain

 

[tomar]

After 4 years the right of the administration to claim the tax prescribes. So, they have 4 years from the last day to pay the Transmission Tax (Impuesto de transmisiones) to claim. Due this tax has to be paid within 30 days after the purchase, they have 4 years and 30 days.

Law says you have to pay based on the “real price” of the property. This is not the price you paid or the market price.

Now you have the right to appeal against this extra liquidation and try to prove price you paid was right. As you know tax authorities don’t visit the property to check, they just use the Cadaster to find out the “real ” price. But may be you can demonstrate the status of the property was poor so, price was low.

Junta de Andalucía, as happens in  many others Communities , has a web page were you can make a simulation of the valuation of the property 

I’m agree the best you can do now it’s pay in order accrue further interest. But you can pay “ad cautionem” and after that claim it back in a process called “Devolución ingresos indebidos”

 

TAXES AND EXPENSES OF BUYING A PROPERTY IN SPAIN

• This reply was modified 6 years, 8 months ago by tomar.

[SurveySpain]

Definitely worth appealing, especially as you bought close to the lowest point of the market and they are now valuing after 3 years of rise. You’ll need a Spanish tasador valuation and a valuer experienced in this should be able to take care of it all for you. It’s valuer against valuer after all.  At the very least you’ll force the tax authorities to justify their value. You need to move fast as you have a short time to appeal. For the future, where you are buying at a ‘good’ price it can be best to get a tasador report at or around that value and attach that to the excritura (Title) when its submitted to the Registrar. That way the tax authorities will know they have a fight on their hands if they try for the ‘complementary tax’. Now there’s a misnomer if ever there was one! You’ll find helpful advice on the internet.

[jrwills20000]

Thanks very much for all your input – we are appealing!

[Author]

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