Capital Gains Tax

Hi. We have just returned from SG and like everyone else are a bit disgruntled with the progress.Whilst out there we contacted Sierra Golf Property Services as recommended by some one on this site. and were told that the earliest hand over would be November. This company are dealing for us with  all legal matters,i.e.  application for NIE numbers, Spanish wills etc .They seemed very professional and knew what they were talking about.  One thing that we were told that surprised us was that Masa are passing on the Capital Gains Tax for the Land purchase. As they purchased the land some 15 years ago, and land has inceased dramatically over this period, we could be looking at a bill of 600 to 700 Euros. It seems this is in the contract - something I have not checked yet  as we have only just got back.  Has anyone else heard about this?

Also has anyone else used Sierra Golf property Services, as I would like their  opinion of them.

Pat & Peter Hall         Albatross 13 .46 

Hi

I have checked our contract and can find no reference to the Capital Gains Tax.

The contract states a " total fixed price (which is the agreed buying price) which can only be altered by the adddition of 7% IVA". Would be interested to hear if anyone else has found the CGT clause.

Pat&Trish

Hi

I have definintly not heard anything about cgt. Please dont scare me. I was assured that our priced was fixed.

Sandra

Hi

Hi John,

I've been caught out as well, they don't tell us these things at the time do they. At least we know now and it won't come us a nasty shock on the day.

Davina

SG 15/48

Hi John,

Still cannot find that on my Contract. The schedule is set out 1,2,3 etc not a.b.c

The second schedule, under Provisions, states " that the agreed price (which is stated) will be considered as final and as a consequence,non subject to any revision or modification. The price will be increased by V A T which at the moment is 7%".

I have re read it all again and cannot find any reference toCGT , so fingers crossed !.

Pat & Trish

Hi. I have just found reference to this in my contract. I have looked up the definition of "Plusvalia" and it says:-  ' It is a tax set by local authorities in Spain based on the increase of the value of the land from the date the owner acquired the land to the sale. The Local Authority determines the amount of the plusvalia to be paid for each house purchase, depending on the area where the property is located. The market value or sales price of the property does not have an effect on the plusvalia tax'.

I dont want to put a further dampner on the situation, but  I have just found out that we have to pay stamp duty on the purchase which amounts to 1% of tthe value.

Never mind one thing we can rely on out there is the sun!!!

Regards

Peter & Pat  13. 46