Property tax - Page 2

Thanks Jim. So yes, I think I may be confused. 

Say you pay 70.000 for a property, correctly managed sale with 70k appearing in the escritura, and later the Ajuntament sends you notification that their valuation of the property is 90k. You paid 10% property tax on the 70.

What happens?

To add......Are you saying that the Hacienda won't chase you for lost property tax based on the cadastral value but the town hall will/may chase you for arrears on IBI ?

Yes that’s right I am being chased for the difference of the price I paid to what the recent value is although I’ve argued that the place was in poor condition and I have refurbished the whole apartment and I wasn’t aware of this when I purchased the property. 

Steve, I don't know enough the subject, but must admit I'd forgotten about property transfer tax (ITP). 

Well done for thinking about it, and your logic sounds good. I understand that Valencian ITP is 10%, and think you only have 10 days in which to lodge an appeal.

Hi Mark, 

Without divulging any info you don't want to, can I ask is your bill from the Agencia Tributaria (tax authority) or from your local town hall?

And whichever is the case can you tell us in Spanish what the charge is for? It will be on the bill.

Also just to clarify, did the amount you paid for the property in total appear as that on your escritura?

Steve

Hi

We bought our property in 2017.

It was up for 239,000€ and they accepted 200,000€.

Apparently this is why we had to pay an extra 4,000€. 

Our solicitor is Spanish and everything, like you was done through online transactions. 

So no shady deals. 

Our solicitor said that the price could be upto 10,000€ and we had done ok to just have 4,000€ 🤔.

I had all the photos of the villa before the massive refurb so they couldn't price it on how it looks now. 

You can appeal. But my solicitor thought at 4,000€ we should just pay. So we did.

Only in Spain 🤦‍♀️

After we purchased our property, we were advised that the Castrel valuation (I think that's what is was called) was 30,000 more than we paid, which meant we will have to find 3,000 tax. We are okay with this, because it is reflected in the tax due, when we eventually sell. However, I have yet to receive a demand for the money, after 18 months, so I am surprised you are being asked to pay so soon ?

I believe the correct word is Cadastral. 

It's not reflected in the tax due when you sell. If asked for it would be due immediately. However some areas are more efficient at collecting than others.

When selling you may have to pay Capital Gains Tax which is a tax on the difference between purchase price and selling price, less certain allowable costs. CGT tax levels differ between residents and non residents. 

Hi yes I purchased about 18 months ago and now I’m being asked for the additional tax as I purchased at 85000€ and the Valuation is 123000€ so I’m being asked for just under 4000€.

Think I have to grit my teeth and pay it. 

Thanks for your comments and help all. 

Cheers Mark 

Thankyou for that excellent hair splitting Ray