Extra property tax when buying

Hi Paul, and welcome to the Forum.

In the past on here,this issue has been raised a number of times .

You should get various opinions and helpful advice ranging from experiences of agreeing to Pay, Appealing and Winning, Appealing and losing ,plus instances of people simply ignoring the demand and it never being followed up .

I suppose a lot depends upon your particular circumstances.

Maybe a second opinion from another Lawyer including their estimated costs in relation to an appeal .

LeckyLes 

Thank you for your reply. 

Hi Paul,

I bought two years ago and got a letter from tax office after the sale looking for this extra tax, i paid 70 for my apartment and they valued it at 100, my solicitor appealed it and won, she only charged me 150 euro.

Thank you. Can I ask how long it took between your solicitor submitting an appeal and the decision being known? 

Thanks 

Hi Paul,

When I read the first paragraph of your post, I thought you had a very proactive lawyer.  Then I read how much she wants to appeal a Complementary Tax bill that hasn't even been levied yet and thought, "Really?!" 

When this subject came up previously, I asked my tax advisors, Abaco, for a view on the likely success of appealing such a tax bill and their response was:

"The complementary tax in itself is valid. It is the authorities recent method of calculation which has had fault found with it by the courts, as happens every few years until the authorities update their calculation method again. As such, depending on what method of calculation was used, the tax demand may still be valid. If your friend's demand was indeed calculated based on the now invalidated method, but still received the notification for payment, they will still need to appeal the demand, as otherwise the already emitted payment document will still be applicable."

Your post seems to suggest that your lawyer has contacted the tax office to ask for the valuation they have placed on the property that you're planning to buy?  Whilst I believe it's a good thing that she has advised you of the possibility of this tax, it seems premature that she would proactively contact the tax office to ask for their valuation, thus drawing attention to the apparently discounted sale price.  In anticipation of receiving such a bill, you may want to get alternative lawyers' quotes for any appeal.

Kind regards,

Kim

I bought in 2015 and just over a year later received a notification saying my property was worth twice its value.  I employed a lawyer and paid 350 euros.  The appeal has to be done within 10 days of receiving the letter.  It took 1 year to process through the court but thankfully in my case I won. My lawyer said that the way they calculate value is complicated and completely irrational and is based on values not relevent to the market value of properties today.  I was asked to pay an extra 7800 euros in complementaria tax.  

Not quite, the timeline described by my tax advisors, Abaco, is: 

"When you receive the letter informing you about it [Complementary Tax], you have a chance to identify any major factual errors within 10 days and an exemplar form is sent so you can do this. Shortly after, you will be sent information about how to pay.  At this point, you are informed that you have one month in which to appeal. After this period is over, you no longer have grounds to appeal and you are expected to pay in full."

https://www.costablancaforum.com/area/formentera-del-segura-spain-54/taxes-suma-nie-tax-advice-in-formentera-del-segura-25/complementary-tax-little-known-often-misunderstood-and-can-be-expensive-58217/

Kind regards,

Kim