Spanish Property Insight › Forums › Spanish Property Forums › Spanish Real Estate Chatter › Spain imposing new property tax on overseas residents › Re: Re: Spain imposing new property tax on overseas residents
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!