NEWS FLASH

Has anyone else been surprised by the Plus Valia Tax being added to your completion bill?

We were. Surprised that is.

There was no mention of this 500 euro bill at any stage during the purchase process, until we recently received the completion breakdown cost from the lawyer. Oddly, the completion breakdown was different from what everyone had being telling us all along. In other words, higher. One of the additions is the Plus Valia Tax.

A bit of research told me that this tax is the local municipal capital gains tax charged to the vendor on the supposedly increased value of the land. Funny, I always thought that the person making the profit should pay the tax on the profit, not the person making a purchase.

Does anybody else in CDA have to pay this tax?

Patrick

An update about the Plus Valia Tax. We asked our lawyer, who confirmed that normally the developer pays this tax because it is indeed a profit tax on their profits, however some developers insist that the buyer pays this tax. One such developer according to our lawyer is Grupo C. Our lawyer estimates that the Plus Valia Tax will be less than 500 euros, but that the final sum is not known until the town hall assesses the scale of the developer's profit on the completion of the deal. I am not happy about this uncertainty.

Can anybody give me some insight into this extra tax?

Patrick

Hi Patrick:

The plusvalia should be paid by the seller by Law, unless you agreed before in the purchase contract the opposite; I would recommend you to check your purchase contract about this item, and proceed according what is estipulated there. If it was written there that you pay the plusvalia, you should complain to your lawyer for not advising you before.

Hope this help, regards,

Jose