- This topic has 11 replies, 6 voices, and was last updated 11 years, 11 months ago by
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In here
http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483
Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!
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@katy wrote:
In here
http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483
Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!
I assume it was done to the minimum declared price? How much did you have to pay around 3.500 sterling in ‘extra tax’?
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This is the “catastral” tax that has been around for years. Each council has a formula to value properties and they use it to set this tax. It doesn’t matter what you actually paid for the property, they will value it according to their formula, and set the tax accordingly. If you declare less than their valuation then they might turn a blind eye or they might pursue. It looks like they are now pursuing a backlog of property transactions. However I expect they are now pursuing everybody – they are not just targeting expats in particular. It is (understandably) typical of expat communities/media to think they when they get ripped off by the Spanish state then it’s because they are soft targets. Don’t worry, Hacienda will persecute anyone regardless of their background/situation. If it’s any help, the more you hate Hacienda the more integrated into Spanish society you have become 😉
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@Chopera wrote:
If it’s any help, the more you hate Hacienda the more integrated into Spanish society you have become
Oh dear… that is just so true.
I wish it wasn’t, but it just is.
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@Fuengi wrote:
@katy wrote:
In here
http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483
Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!
I assume it was done to the minimum declared price? How much did you have to pay around 3.500 sterling in ‘extra tax’?
Yes on each house 😈 Would have been 7%, was pesetas then. We looked on the bright side in that we had got a bargain. We heard about 3 months after purchase. I got my revenge when selling at a good profit re.CGT 😉
I believe that there is no need for unpleasant suprises nowadays as it is possible to get the official valuation figure before purchase.
Just to add it affects the seller too when CGT is calculated, they could be deemed to have made a profit even if they made a loss!
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@katy wrote:
@Fuengi wrote:
@katy wrote:
In here
http://www.costa-news.com/index.php?option=com_content&task=view&id=7784&Itemid=120#akocomment1483
Not new they have always done it in times of falling prices. Happened to us in 1995. The tax authorities have a price for that property and they won’t budge despite many lawyers saying different. We paid around £60,000 each for 2 houses from a bank, tax mafia valued them at cerca £85,000. Our Lawyer advised us not to bother appealing even though he was going to charge a 1000 euro to do the appeal. Fortunately we had an honest Lawyer!
I assume it was done to the minimum declared price? How much did you have to pay around 3.500 sterling in ‘extra tax’?
Yes on each house 😈 Would have been 7%, was pesetas then. We looked on the bright side in that we had got a bargain. We heard about 3 months after purchase. I got my revenge when selling at a good profit re.CGT 😉
I believe that there is no need for unpleasant suprises nowadays as it is possible to get the official valuation figure before purchase.
Just to add it affects the seller too when CGT is calculated, they could be deemed to have made a profit even if they made a loss!
Yes we were given the figure in the notario’s office when we bought a flat last year. So we declared that figure as the purchase price, even though it was more than what we paid.
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