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Hi I have recently purchased a property in 2017 and I am now being chased for additional tax due to my property increasing in value since I purchased it, my solicitor is asking me to pay this ASAP. Has anybody else had this issue ? Any advice would be welcome . Thx mark
Did your solicitor not say anything about how you can appeal this?
It is a tax on the difference in price between what you paid for the property and what the authorities believe was the actual value of the property. It was designed to stop people declaring a lower sale value to reduce tax liability and paying the rest in cash.
If this is the same abogado who handled your purchase, I would be asking them why they didn't advise you of this at the time. Even so, there are ways to appeal so you can either reduce or completely defend this bill.
Posted: Mon Sep 23, 2019 8:38am
Helpful member
Hi,
there was a recent thread on this subject. I think it might have been Jim that covered it. If I remember correctly I don't think it's the fact property has went up in value since Purchase but more a discrepency in the price paid on purchase in relation to the castral value of the property.
Your solicitor should be explaining this in detail regardless of the reason.
Posted: Mon Sep 23, 2019 8:56am
Thx very much for the reply and information.
Posted: Mon Sep 23, 2019 8:59am
Hi many thanks and no it wasn’t covered when I purchased my property, I am in touch with my solicitor who dealt with the purchase and I have kicked back and awaiting a solution which I imagine will be this week. I appreciate your advice on this.
Many thanks. Mark
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Posted: Mon Sep 23, 2019 9:19am
Hi I used a Spanish solicitor and all payments were bank transferred but I paid an annexe price which was less than the actual purchase which I’m still trying to find out what an annexe price was.
Thx mark
Posted: Mon Sep 23, 2019 3:42pm
Legendary helpful member
I'm puzzled. Plusvalía is the tax on increase in value of a property, but it's paid by the seller - unless the seller has done a bunk and can't be contacted.
However, if the catastral value has been revalued, then it will be your responsibility to pay it. They can go back several years on this.
Posted: Mon Sep 23, 2019 3:49pm
Legendary helpful member
jimtaylor wrote on Mon Sep 23, 2019 3:42pm:
I'm puzzled. Plusvalía is the tax on increase in value of a property, but it's paid by the seller - unless the seller has done a bunk and can't be contacted.
However, if the catastral value has been revalued, then it will be your responsibility to pay it. They can go back several years on this.
That's how I also understand it Jim.
Would I be right in saying that the Cadastral revaluation tax is 10% on the difference between the old valuation and the new one?
Steve
Posted: Mon Sep 23, 2019 3:52pm
Legendary helpful member
Hi Steve. There isn't actually a catastral revaluation tax. All a revaluation does is increase the amount on which IBI and, if applicable, non-resident tax, are calculated.
Posted: Mon Sep 23, 2019 3:53pm
Hi Jim, many thanks for your reply I’m not aware that the seller had paid this just trying to get to the bottom of it with my solicitor. I have been told by others that were chased for this tax that they pushed back and didn’t have to pay it that’s why I’m challenging this as it has caught me by surprise and they are asking for around 4000€ !
