Am I being overcharged on my house purchase fees.

The problems seems to be on the reference value. Unfortunately, this is the price the government goes on and not the actual selling price. Notaries and agents around the area submit the prices that have been for housing and the government tax people take that average value as the reference value when assessing the price of the property. Originally designed to catch those who deliberately under value the house and take a certain amount in cash to avoid taxes, it is also being used to take what the government feel is theirs despite it obviously being sold as repossessed or people wanting a quick sale.

It does seem a bit unfair and I am sure I heard someone was taking them to court about it but haven't heard any outcomes. If you can prove that lower price is definitely the price you pay then I think it a bit of a rip off the government charging tax on something you haven't paid. 

If you only pay the transfer tax on the price you paid, the government can demand extra based on the reference value up to 4 years down the line and many people have had this so-called complementary tax levied years after buying the property.

Thanks for this info, I just wished they mentioned it before. 

It's a bit of a learning curve for me. Thank again

It's also annoying that, if you do find your dream property and pay over the market value, they do not take the reference value in this case but in the amount you actually paid. No getting a rebate on tax because you paid over the odds.

This law was only introduced in 2021.

Simply put, you have purchased a property at below market price and the tax man wants his part of your good fortune.
I have found that unless you ask a specific question, and sometimes even then you will get a shrug of the shoulders, nobody will volunteer any information which would jeopardize  the sale.

Hi,

   there is some good info/advice in the attached article regarding buying property in Spain and the associated costs. It is dated 2024 so should include current costs. Note the recommendation on using a gestor, might be useful for you.

https://www.idealista.com/en/news/financial-advice-in-spain/2024/02/15/7875-the-costs-and-taxes-associated-with-buying-a-home-in-spain

Rgds,

Aitch.

When we purchased our home in 2018 the same happened to us, the authorities tried to increase our tax saying that the true value of the property was higher. 

Marcliff is correct in saying that there was a court case regarding this situation, I guess they won the case as our solicitor challenged the state valuation and it was upheld thankfully in our favour.

Contact your solicitor and see if it can be challenged.

Good luck.

I think I would consider walking away from this purchase on the basis of being mislead initially when they stated that the tax would be 10% of the purchase price, did they give you this in writing ?

I would certainly take legal advice.

Just my opinion.

Hi, thanks for that advice, we are actually going to do so.

I was told verbally the costs in general. i.e.. 10% tax on purchase price. Notary 600÷ costs. Which has now increased to 4.5k. .

A warning to others, get an independant Lawyer, I made a serious mistake of accepting the agents legal team.

I am going to pull out as the whole process has left a such a bad  taste that we don't want ithe property anymore.

Thanks everyone for your advice.

This is so disappointing for you and I guess that you have learned the hard way re the independant lawyer, it is something that is mentioned frequently on this forum along with never give money to the agent, only your own solicitor.

I am one of many on here who has bought in Spain and I can say to you that, when done in the correct order it is very rewarding.

Maybe take a couple of months away from it to get over your bad experience and then try having another look.

Whatever you decide to do I wish you well, it was very brave of you to come on here and say that you have made a mistake, they say that you learn from them ?

Ken

PS it is also said that buying bank repossesions can be very difficult too, if you do look again I would say go for a normal purchase.