Re: tax payable

#67743
Anonymous
Participant

It is worth remembering that your tax liability on purchase is initially calculated as a percentage of the declared value.

But this is subject to revision. I have seen a case where a Spanish buyer declared the full price paid on a flat purchase and then received a supplementary tax demand three years later. The buyer had made a good purchase from a slightly distressed seller and the taxman noticed that the declared value was below the average value for the size of the flat and the area. Hence the subsequent tax demand – which had to be paid in full before any appeal could be made.

I believe you will find that transfer tax liability (stamp duty) is assessed on market value and not declared price. Although the initial assessment, and for many buyers the only assessment, is based on declared price.