Complementario tax after buying a house?9 Replies
Two years ago I purchased a flat in Marbella, Andalucia. About three months later I got a nasty suprise when I recieved a bill of €9000 which was unpaid purchase tax. It turned out that I should have paid tax on the difference between the purchase price (what I bought it for) and the Cadastral value, or what the government says that the flat was worth. Even though there was no way that the flat was worth the government estimate, I was told that to fight it would cost probably another €1000 odd euros without the guarantee of ever getting my money back. Interestingly, nobody told me about the possibility of this happening, my estate agent mentioned nothing, and my solicitor mentioned briefly the day before completion, when I had already invested money on fees and deposits, that there was sometimes a small chance, but not to worry. I had already committed a great deal of money on the renovation of the property and so was very distressed when this bill came in. In the end my love for the flat just dropped away and I sold up at a great expense given that the agent took commission on the sale of the furniture. And now I am waiting to see if I will ever get back the 3% non resident tax when selling the property. So now I am thinking of moving to Spain, and this time Costa Blanca. Can anybody tell me if the same rules apply in Valencia about this hidden tax and are Cadastral values easy to obtain before committing to purchase? Nobody cared when I lost a lot of money last time, I didn't even make a profit on my last home and unfortunately my builders receipts were all dodgy so can't even offset the renovation against the tax. Please help! Should I just forget about Spain altogether?