[marios]

How do you work out the cost of selling when you have bought the land and built the property yourself,also what paperwork do you have to show in the costs for the total of your land purchase and building costs.

[Anonymous]

a bit late now ?? 🙄 🙄 🙄 🙄

[Chopera]

I would like to know the answer to this as well

[marios]

@UBEDA wrote:

a bit late now ?? 🙄 🙄 🙄 🙄

I don’t quite understand this!!!

[Anonymous]

I also thought that you had to register the property to be legally allowed to move in/live in it with a residents certificate and to connect to water/electricity. I thought you had to show your costs of materials, workmanship, licence blah blah blah so that you could register the property and the town hall would value it for IBI etc. That would be the paperwork alongside the deeds which you’d use to sell?

[marios]

@itsme wrote:

I also thought that you had to register the property to be legally allowed to move in/live in it with a residents certificate and to connect to water/electricity. I thought you had to show your costs of materials, workmanship, licence blah blah blah so that you could register the property and the town hall would value it for IBI etc. That would be the paperwork alongside the deeds which you’d use to sell?

Yes I have done all that so I’m asking what’s the difference when selling compared to a second hand property.

[Anonymous]

surely if you have done all this and lived in it the property is now secondhand or a resale property

[marios]

@dartboy wrote:

surely if you have done all this and lived in it the property is now secondhand or a resale property

No because its not one set price I have bought land and built,so do we just add up the building costs and the land cost or is it more complicated than that.

[Anonymous]

To work out the value to sell? I still don’t understand the question. Are you wanting to know how much to put the house up for? The paperwork already done should have the ‘value’ the town hall have for your property. That doesn’t really matter though as I guess the value is what someone else is prepared to pay for your house?

I’ve seen lots of paperwork where someone British bought a house from someone and if you go back to the original paperwork you can see that the land was bought for say 4000 euros and the house was a ‘casita’ of three rooms. It was all extended and registered and then sold for a vast profit. Therefore the price was what the seller/buyer agreed. If it was the land plus the cost of construction so many of my friends would have paid much, much less for their properties.

Sorry if your question is different to this? Is that the ‘value’ you are trying to work out? Maybe if that is what you want to do to work out your selling price then do that, the cost of the land plus your construction costs on top. See if it matches the market value?

[marios]

Sorry what I meant was what would be deemed as the price of the property (ie by town hall)for tax purposes if the property was sold,say built for 400,000€ (land and build) and sold for 450000€ what would your tax position be regards to cgt etc.

Its easy enough if you bought 2nd hand to work out.

[Anonymous]

Hi Marios,

OK ….. I think what you are asking, may be along the lines of “What’s the minimum price that the house could be sold for, without the authorities thinking there had been an under declaration for tax purposes?”

If this is so, and assuming that you submitted all your documents (as per itsme’s first reply) to the authorities for reassessing the IBI / valor catastral when you completed your build, then ……..

If you look at your IBI bill, there will be a notional valuation (valor catastral).

You need to then apply a multiplier (municipal coefficient) to the valor catastral – these municipal coefficients change from town to town and are published by the regional government.

Multiplying the two together, will give you a value that AEAT consider the minimum sale price. If you sell for less than this, they will most definitely think there is underdeclaration in order to avoid Capital Gains Tax, and will issue a demand for more money.

All the above bears no relationship to the actual sale price, which is driven solely by the marketplace.

Forgive me if this is not what you were looking for.

Regards,

Mike

[marios]

Interesting thanks for that mortimm.

[Anonymous]

My pleasure Marios.

In the current market conditions do not be surprised if, after doing the calculation, it is way higher than the market price of the property.

Alas, many have sold and then been presented with a further demand for money from AEAT with little / absolutely no hope of sucessful appeal. All because the AEAT calculation doesn’t reflect the current market conditions. They will still demand their pound of flesh!

Regards,

[Author]

Posts