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Complementary tax - Spanish property purchase
02 October 2011 @ 09:41

I am following a thread just posted in another forum, a local one to me in Torrevieja, Costa Blanca. The subject will worry many!

"Anyone heard off this? The Valencia goverment are looking at house purchases in the last 4 years. Anyone buying a house under market value will be getting a letter.

I bought my villa cheap , for example £100k , they say its value is £150k so they want 7% of the differance ie 7% of £50k
I can appeal which I'm going to do but the solicitor want €1000 and theres no guarantee I'll win."



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1 Comments

Jayne D said:
04 October 2011 @ 11:08

Hi, we purchased a property in the Malaga province over 2 years ago and 6 months after buying, we received the same sort of letter, from the Junta de Andalucia, demanding 7% tax, a 'Complementary Tax Declaration' on the difference of what we bought the property for and what they 'valued' it at. Our lawyer appealed, 1 year later we found out we had lost the appeal and had to pay the 7% tax plus the years arrears and interest. Difference was our lawyer didn't charge us a huge amount for appealing, but he also didn't tell us that if the appeal was lost, that we would incur 1 years penalties also. We paid up, because we had to, but it still makes me mad even now as we bought the property legally and it probobly isn't even worth what they valued it at now. We had to swallow that extra expense, but I wonder will there one day be someone who will tackle this issue and open up the floodgates for people like us that have been 'stung'? My advice is don't appeal unless you have one hot shot lawyer who can prove that your property is valued at what you purchased it at! Good luck.


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