17 Sep 2014 9:50 PM:

So you want to buy a nice house in the Provincia Alicante, Valencia or Castellon?
So did we.

You do your homework and figure out all the costs before you buy.
So did we.

Then just before you sign you (we did) stumble over:

Orden 4/2014, de 28 de febrero, de la Consellería de Hacienda y Administración Pública, por la que se establecen los coeficientes aplicables en 2014 al valor catastral a los efectos de los impuestos sobre transmisiones patrimoniales y actos jurídicos documentados y sobre sucesiones y donaciones, así como la metodología empleada para su elaboración y determinadas reglas para su aplicación.

And you read the horror story that somebody who just bought a 99.000 Euro bargain house now has to pay not 10% BUT 27% tax (ITP).

 

It takes you a while to figure out what this new law, what was passed in spring 2014, does mean for you.
So did it for us.

Here is the quick and dirty explanation and the link for you to check these facts for yourself.

Comunidad Valencia is broke, so where to get more money?

Easy, since we are taking a loss on every house sale since the prices are dropping so much (coming to a more realistic level but that is just the rest of the world thinking) we need to find a way to get more money out of this rich foreigners.
We jacked already the ITP to the max with our 10% but we need much more money.
Why don´t we take the value of the house (VALOR CATASTRAL) and multiply it with a coefficient to make up the the differences when last the value was determined.

If the value is higher we take that, if it is lower than 10% we take the 10%

STANDING OVATIONS
(This will so backfire when the potential buyer learns about that.)

So you can not trust your real estate agent, you lawyer or your notary when they answer you that there is a 10% ITP on your future house, condo, flat etc.

This guy did and here is his final bill - what he appealed and guess what - right , lost!
(see link at the bottom)

The end of this story is that my house ,would have been not 120.000 Euro plus 12.000 Euro ITP but plus 21.590 Euro.
That is 18% ITP and neither the seller wanted to go 10.000 Euro lower nor we wanted to loose 10.000 Euro more for nothing!
So this is one of the first No sale No money for the clever people who thought of that.

 

Please educate yourself that this is all true and then help spread the word of this madness over all social media.

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OK use Google and search for :  524852-orden-hacienda-4-2014-de-28-feb-ca-valenciana-coeficientes-aplicables-en

Oh I forgot, when you buy your house flat etc they charge you the 10% everyone knows about.

... and then they have up to 4 years time to hit you with the rest.
and here comes the nice part, it gets taken out of your account and if you refuse or do not have the funds your new property gets taken away from you auctioned off to pay your debt. NO KIDDING!

Do you get the big picture ?

I did and I am not buying until this is revoked.
Because when they get through with this then the door is wide open to milk the people who have property in Spain.

 

Kudos goes to Graham Hunt and his: "Potential Bad News on Valencia Property Tax – Forewarned is Forearmed" post

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Thread: Warning! much more than 10% ITP (tax) on a property in the Comunidad Valencia!

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