Legal tip 574. Tax claims when buying a distressed house in Spain
Wednesday, August 17, 2011 @ 11:42 AM
An answer and a question from yesterday´s post:
said:
16 August 2011 @ 23:28
I read in a few places that buying under duress can lead to tax issues - the hacienda is still valuing properties on a 2007/8 scale and therefore taxing plus valia and IBI based on outdated scales. There could possibly be a hidden tax bill to purchases that needs to be factored into prices?
Maria said:
17 August 2011 @ 09:33
It is always necessary to check on the tax value of the property when setting a price. This is composed by catastro Value plus a factor which varies or every locality.
It is also possible to establish a clause in the sale contract covering this possibility and offfering compensation/solution.
It is also possible that the tax valuations of properties will change in the near future (as the market is being promoted) and
there is always the possibility of a claim against the Taxman valuation.
Caños de Meca, Costa de la Luz, Cadiz, Spain by Abduletski at Flickr.com