Malaga tax office has privately declared its intention to go after all non-residents who either do not pay tax or in their eyes do not pay enough tax. In their eyes non-resident have pots of money and should be paying more!!!!!
The tax office feel they are losing revenue when non-residents opt to sell cheaply and then reclaim the 3% non-resident retention such that they are now undertaking their own valuations using sites like fotocasa for reference. The result of course is a loss then becomes a profit and rather than a refund there is a tax demand issued. Of course they can only do this when the non-resident owns more than one property so unless the other properties can be sold quickly to facilitate a hasty exit then they have you with their wide sweeping powers of embargo. We’re are just one step away from Franco’s men showing up on doorsteps. Spain has not changed!
The tax office unlike the Junta Andalucia does not work off a multiple of the valor catastral. We already have the situation whereby anyone buying a bargain property must pay transfer tax by reference to the higher deemed value (multiple of valor catastral).
It would appear the tax office may soon move away from actual values or incomes and prefer instead to tax on deemed profit/income at least whilst the recession continues. It may be they decide that any professional should earn X and that is what you will be taxed on – the fact there is no work around is no reason for them to also suffer!
Anyway the purpose of this posting is to see if anyone else has encountered reassessment of value for capital gains tax and how they got on in appeal/negotiation etc and secondly to serve as a warning to anyone contemplating buying or selling property in Spain.
When I enter the tax office I sometimes wonder are the bars on the window to keep me out or to lock me in. I do not trust these people and would not wish to disclose too much information to them.