AEAT Capital Gains Tax Demand

Hi Litldevil:

You have to put the cadastral value not the sale price. You’ll find the cadastral value as additional information included in IBI’s receipt.

Usually, the calculated value is higher than the sale price. So, it’s sure you’ll receive a complementary settlement for the Property Transfer Tax. I don’t know his case but sometimes buyers can find a huge complementary settlement.

There are different ways to get reduce this settlement, even you could get cancel it. It depends or each case cause it’s necessary to consider some different circumstances.

Commonly, Notary and lawyers used to recommend pay more than you must to pay. Thus you’ll prevent future problems with Taxation Authorities and you’ll have to pay interest for late payment. It’s an easy advice that means less work for them. But I don’ recommend this for several reason:

1. Taxation Authorities are really blackmailing you with a abusive and complicated tax proceeding.  In fact, not all the lawyers and tax advisor are true expert in this cases due its complicated proceeding and tax authorities know it.
2. If you get a expert advisor, he’ll tell you that at worst, you’ll pay the same or less if you would have paid when you bought the property than If you manage the complementary tax proceeding well advised cause in a moment of this proceeding you can get sure almost a 10% discount of your complementary settlement. I would like to underline that It’s happen at worst, but you could get a higher discount or get the receive cancelled.
3. And the third reason, at worst, the money will be in your pocket until the proceeding and the appeals are finished. It depends on the province but probably It takes between one or two year at least.

So I recommend you to pay taxes calculated with the sale prices and wait for the complementary settlement. And if you want to be sure of your options, ask for a real expert on this matter, because a lot of times you can do things before you received the complementary that help you to get success on your appeal.

I hope that I’ve help you. Be lucky.

I think it's time for Maria to clarify the matter, as some of these posts do not address the matter and are irrelevant;To  me, it's about the difference payable in transfer tax between what the property is sold for and what the tax office thinks it's worth.I've heard that an independant valuation survey should be obtained. The catastral value is to do with IBI,it's nothing to do with what the house sells for.Surely anyone should be able to sell their house for what they like, and as long as they have the paperwork to prove they are not underdeclaring to reduce their tax, then that's it.This complementary tax is the legacy of tax cheats, and the innocent suffer for it.

Surely, Camposol

I agree that it’s a robbery. But a legal robbery cause rules included in the Spanish fiscal laws (article 57.1 of Spanish General Fiscal Law) let tax authorities calculate the real value from the cadastral value, or from the bank appraisal to get the mortgage –usually inflated by banks -.

So the buyers are forced to prove the real value in a complicated proceeding designed with a lot of tricks in which many evidences are not let. Then if you don’t take an expert for helping you, probably your appeal will be refused. But if you ‘ll get a specialist advisor you’ll have a lot of possibilities to get cancelled or get a huge reduced in your complementary settlement.