costs involved in selling property in spain?

Post reply   Start new thread
:: New - Old :: Old - New

Pages: 1 |

Forum home :: Latest threads :: Search forums
The Comments
22 Mar 2012 00:00 by angela59 Star rating in Ireland. 58 posts Send private message

Hi all,

What is Value Increment Tax - is this the 3% retention tax which non residents can claim back?

Plus Valia - anyone an idea of approximately how much this is - I have 2 bed apartment in Orihuela Costa.

Real Estate Tax 2012 - is this the non- resident tax.

Would be grateful for an information.

TIA

 

Angela



_______________________
Angela59



Like 0      
22 Mar 2012 11:26 by mariadecastro Star rating in Algeciras (Cadiz). 9290 posts Send private message

Legal Questions? Speak to Maria Direct

Income tax and Plusvalia are calculated taking into account the price you buy it for and the price you are selling it for now.

Pluavlia amount is calculated by the Town hall.

Income tax is of 18% of profit



_______________________

Maria L. de Castro, JD, MA

Lawyer

Director www.costaluzlawyers.es

El blog de Maria



Like 0      
22 Mar 2012 13:04 by angela59 Star rating in Ireland. 58 posts Send private message

Hi mariadecastro

Thank you for that reply.  Just also the purchasers want included on the contract the following:- That if there are any hidden defects that you have to cover the repairs. This is what the law says but they want it in the contract.

This seems to be a ridculous law - what if something should crop up and could cost thousands does this mean that I have to cover this.

 

Angela



_______________________
Angela59



Like 0      
23 Mar 2012 19:51 by Roberto Star rating in Torremolinos. 4493 posts Send private message

Roberto´s avatar
Plus valia is calculated by your town hall, and is based on the increase in the value of the land the property is built on - valor catastral. You (or your representative / estate agent) can find out quickly and easily by going to your town hall and askng how muc

_______________________

 

"Politicians and diapers must be changed often, and for the same reason"

Mark Twain

 

 

 




Like 0      
23 Mar 2012 19:51 by Roberto Star rating in Torremolinos. 4493 posts Send private message

Roberto´s avatar
Plus valia is calculated by your town hall, and is based on the increase in the value of the land the property is built on - valor catastral. You (or your representative / estate agent) can find out quickly and easily by going to your town hall and askng how much it will be, but as an indication, I recently enquired about my 2 bed Costa del Sol apt, purchased in 2003, and the bill would be about €1,000 now. The 3% retention for non-residents is in lieu of any capital gains tax due - incremento patrimonio. You can only apply to get it back if there is no capital gain i.e difference between the purchase & sale prices declared on your deeds. If you have a gain, I believe the current rate of tax is 19% on the first €6,000 and 21% thereafter, but you will get as many different answers on this as people you ask. "Real estate tax 2012" I imagine refers to the rates (IBI, or sometimes referred to as Suma) which you are liable for, even if the bill hasn't yet been issued by the town hall. The thing about defects sounds a bit daft really. If it is the law, then surely there's no need to include it in any contract? Unless you are aware of a hidden defect that you don't want to admit to though, I wouldn't worry about it. It's hardly going to be enforceable anyway if something does arise, especially if you are out of the country. Sorry about the double post, I'm struggling to type this on a tablet and my thumbs keep getting in the way!

This message was last edited by Roberto on 23/03/2012.

This message was last edited by Roberto on 23/03/2012.

_______________________

 

"Politicians and diapers must be changed often, and for the same reason"

Mark Twain

 

 

 




Like 0      
23 Mar 2012 22:24 by joe1949 Star rating in Manchester. 61 posts Send private message

 If (just for instance!!) someone was selling & had not paid the la renta for (a while!!!) would this be withheld in the 3%?





Like 0      
23 Mar 2012 23:26 by Roberto Star rating in Torremolinos. 4493 posts Send private message

Roberto´s avatar

Strictly speaking, the 3% retention is only in lieu of any capital gain resulting from the sale, but since it all goes to the same department (Hacienda) I guess if you haven't (ever??!!) paid la renta on your property, once they've got some of your dosh, even if you haven't made a capital gain (or at least not one that would result in a tax bill equivalent to 3% of the sale price) then you might find it a tad difficult claiming any of that retention back! But I really have no idea how they work - I'm quite sure that if you (for instance!!) hadn't paid la renta, you would not be alone, so maybe a non-resident who has actually gone through the process can comment?



_______________________

 

"Politicians and diapers must be changed often, and for the same reason"

Mark Twain

 

 

 




Like 0      
23 Mar 2012 23:35 by angela59 Star rating in Ireland. 58 posts Send private message

Hi Roberto,

 

Thanks for the reply.  I'm up to date with the La renta apart from last year which my solicitor will pay and deduct from the sale.

 

angela59



_______________________
Angela59



Like 0      
24 Mar 2012 00:37 by claire T Star rating in Torremendo, Orihuela. 689 posts Send private message

EOS Supporter

Hi Angela - fortunately Orihuela Costa has a very low rate for Plus Valia, so this is unlikely to run into the thousands - unlike neighbouring Torrevieja where they have realised they can get lots of cash out of sellers. 

As mentioned below, this can be calculated easily or you can go to the Suma office and ask them to do a calculation for you, based on the date of completion.



_______________________
Claire



Like 0      
24 Mar 2012 01:24 by angela59 Star rating in Ireland. 58 posts Send private message

Thanks Claire,



_______________________
Angela59



Like 0      
13 Apr 2012 21:32 by lesleywhiteman Star rating in Cippenham & Costa Bl.... 67 posts Send private message

 Hi Maria, could you advise.  I sold my apartment in August 2010, also purchased a larger apartment in the same building.  I did not make any profit on the sale.  The buyers retained the 5%.  I was informed by my solicitor that I could reclaim this back, so long as my non resident taxes were all up to date, which they were.  I was informed in December 2011 by my current solicitor that the tax office said they could not find my returns.  I asked my previous solicitor who completed my returns for copies which they provided.  Since December 2011 I have been trying to contact my solicitor for an update as the refund is still outstanding.  They will not reply to me. I know they are still in business.  Should I instruct a new solicitor/accountant to take this up and move forward to claim the refund on my behalf?

 

Many thanks

 

 

 



_______________________
Lesley



Like 0      

Pages: 1 |

Post reply    Start new thread


Previous Threads

long term let required-arroyo/gamanol area - 0 posts
Don't you just love them. Never a day. - 37 posts
Burofax - Process - 7 posts
Nightmare tennants in commercial unit - 3 posts
Lope de Vega school in Benidorm - 3 posts
Dam it!!!!!!!!!!!! - 10 posts
Modball Rally - 3 posts
Keeping your car in Spain!!!! - 5 posts
Natural Gas costs? - 13 posts
iPad (1st Gen) 32GB wifi +3G for sale - 0 posts
Driving from UK to Salou Spain via France - 15 posts
AIR CONDITIONING UNIT - 0 posts
My right for a translator in a Spanish court - 5 posts
Cocoon Telecom/Arrakis - 1 posts
IT'S APPEARS NOT AS STRAIGHT FORWARD AS THEY SAY, EVEN WITH A LEGAL BANK GUARANTEE!! - 67 posts
Space in Van going to Spain. - 1 posts
UK TV for my holiday home. - 16 posts
General Strike and Flights from UK - 0 posts
Sell my property! - 7 posts
Is it legal? - 4 posts
Asking for help, be more specific - 0 posts
Bad tenants - 21 posts
Wanted - 1 posts
Driving from Santander to Murcia, need Hotel stop over - 6 posts
Help please - 0 posts

Number of posts in this thread: 11

DISCLAIMER:  All opinions posted on these message boards are the opinion solely of the poster and do not necessarily reflect the opinion of Eye on Spain, its servants or agents.


1 |
Our Weekly Email Digest
Name:  
Email:
   


This site uses cookies. By continuing to browse you are agreeing to our use of cookies. More information here. x