Reply To: Black Money – are you a fraduster and didn’t know it?

Spanish Property Insight Forums Spanish Property Forums Spanish Real Estate Chatter Black Money – are you a fraduster and didn’t know it? Reply To: Black Money – are you a fraduster and didn’t know it?


Hi Jem

thanks for your comments. With regards to the question I believe they already are. I know of people locally who are being fined now for property transactions relating to points in the past – currently the furthest back is about 3 years.

What is happening (and I can only speak for here not the Country as a whole) is this. It appears they have decided everyone who bought their home has underdeclared by 20% (probably not far off the mark) and issue fines accordingly.

If you appeal the fine then you have to prove that the price you paid was the price at the time. They will organise a catastral valuation and endeavour to determine the value of your property at the time you bought it – based on what I dont know, but they will probably apply the price per sq m formula of the price at that moment in time.

If they find that your property is correctly valued and declared then they will waive the fine – however you will still have to pay for the administration of the survey, the instructing of the lawyers and the architects etc which will amount to around €1,500 so it may not be worth your while. Alternatively they may find that your house was valued much higher and slap a bigger fine on it.

If you kept all the original paperwork (the private contract, receipts for the deposit, receipts for all monies paid) then it should be even easier to prove – but not many people I know have done so (I dont think I could lay my hands on mine).

Like all things in Spain the Tax authorities differ by area so it may different where you are. Also in certain towns here (like Oliva and Ontinyent and others) they tend to pick up on things like this quickly whereas others – my own town of Piles – tend to be much slower to react. The cynic in me says this is a path of low resistance to earn quick money – bearing in mind Spain loses a lot of grants next year from the EU – they have to get their money somehow.

Hope this helps