Re: House Valuation

#91718

Anonymous
Participant

I wanted to let other homeowners know of something that has happened to us and I believe many other homeowners.

We bought our house in Murcia on the 13th July 2005. Like a lot of other people we thought we were legal however three years down the line we finally got confirmation that our house was illegal. Our builder has now paid the fines and we thought we could now settle down and think about retiring and moving permanently to Spain.

Our solicitor got in touch with us last week to say he had received a letter from the Murcia Tax Office with a demand for an additional Tax payment of 4.500 euros. The Tax Office have decided that our house was undervalued at the time of purchase and they have decided what the value should have been. They have given us 10 days to respond. Our solicitor has told us he has come across a few other instances like ours recently and the reason being given is that because of the credit crunch Tax receipts are down and this is the Governments way of getting money in. It would seem this is only being targeted at foreign buyers not spanish buyers.

Our solicitor is trying to negotiate the payment down or removed but has advised us to prepare to have to pay this tax bill. He has also advised if we do not pay the Government can embargo our property, This is outrageous that this allowed to happen

If in the UK the Government decided that houses in their opinion were undervalued at the time of purchase and started to send out retrospective invoices for additonal stamp duty payments many years later there would be an uproar especially if payment was demanded immediately and threats made to embargo your properrty.

This is yet another instance of the Spanish Property market needing to be properly regulated.