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?

Featured Classified

Replies

miles-951723 1395340363

HI,


My name's Miles, I've just moved out to Los Alcázares in Murcia and am working in La Zenia on the Costa Blanca at Fuster & Associates, a legal firm.


To be honest it sounds like you received very poor advice with your last purchase which is unfortunate.


The situation with the cadastral value (valor catastral) is the same here in the Valencian region but it is a figure that is easy to obtain before purchasing so don't let it worry you. Obtaining the cadastral value and checking it against the purchase price is a standard part of the due diligence process, at least at this firm.


You definitely shouldn't let your previous experience put you off coming back to live in Spain as it is a wonderful place to live.


If you have any other doubts about the purchase process / taxation then let me know.

catlover-856627 1395341377

thank you


I am actually coming out tomorrow to have a look, so thanks for the advice. I might well be contacting you, please let me know how, as if I do buy, I will need an honest lawyer.

miles-951723 1395393897

I have sent you an email through your profile here with my contact details and you can also reach me by calling us on +34 968 575 650 and asking for Miles.


I hope your trip proves to be useful, get in touch whenever you need to and I'll be happy to help.

catlover-856627 1395934998

Thanks Miles


one last thing, do you know how I find the coefficent multiplier for an area in Costa Blanca. I am looking at a house in La Canalosa.


many thanks

miles-951723 1395937024

Hi,


I hope the trip is going well.


The coefficient multiplier will be dependent on what you are going to use it for, if you let me know what you are trying to calculate I will be able to give you instructions on how to find it.


Miles

catlover-856627 1395937629

Hi Miles


so in order not to get caught out again, I thought I would try and work out if there would be any complementary tax to pay on a property which I have seen. I am asking the owner to tell me the Valor Catastral on the IBI and then I was going to use this to multiply with the coefficient. Then  I could compare my purchase price against this. This is something which I knew nothing about the first time round, so I don't want to be caught out again.


If I go ahead, I will need a good lawyer - I have your number!


many thanks


Debbie

miles-951723 1395940528

Hi Debbie,


Yes, it's definitely worthwhile making sure the whole process is managed correctly this time round.


Here is the link for the page where you will be able to calculate the valor real of the property: http://csi.ha.gva.es/kiosko/valor_bien_urbano.principal?el_idioma=CAST


You will need to enter the valor catastral (cadastral value) and your municipality. You may already know, but the municipality in which the property in question is located is Hondón de las Nieves.


Miles

catlover-856627 1395943262

thank you so much , Debbie

bigben-859970 1396801861

If you buy a property in Spain you have to ask to see all of the following documents before you sign at the Notario. The "escritura" which shows the seller is the owner. The energy efficiency certificate. (it has no real value but you need it). Proof that recent utility bills are paid. Proof that any contributions to the community of owners is paid for previous year and agree who pays what of the current year. A "cedula de habitabilitad" without which you can only buy a ruined property. You absolutely must have the Cedula. Lastly you need to have the last paid receipt for IBI. (impuesto sobre bienes imuebles) or in other words the local tax. The IBI has the catastral number and the catastral value.


There are two values that can determine how much purchase tax you pay when you buy a house. It can be the price you declare as being paid or it can be the catastral value WHICHEVER IS HIGHER.


For all of the above mentioned documents you should not only see them but have a copy in your hand before you sign. If they don't give, them don't buy. Then when you have them, if you are not sure about anything take them to a Spanish lawyer or to another estate agent. Offer the other estate agent €50 for half-an-hour of his time.

Join the discussion
LOGIN OR REGISTER

Login