When purchasing a property, although the buyer declares the full purchase price, the Treasury may require the same to be taxed according to its own fiscal value.... which, given the big discounts on properties now in Spain, might be higher.
According to the National Organization of Consumers (OCU), this is "easy" to happen if, for example, the seller has agreed to at "significant" price reduction to accelerate the sale, or if the house has been purchased at auction. In these cases, although the buyer declares the full price in the Notary deed, which is the document that you offer to the Treasury for the payment of your Transmission Tax, the Treasury may initiate a verification process and requires a higher taxation according to its own valuation.
In these cases, there is no other solution than to present allegations and claim according to the appropriate procedure.
So a good recommendation offered by the OCU when buying, or receiving a donation or inheritance is to apply in advance for the tax assessment of the real estate by the regional Tax Authority. OCU also warns and suggest paying special attention if you are applying for a mortgage, and the valuation of the house by the bank´s surveyor is higher than what is expressed on the deeds, as the Treasury might take that for the tax correction.
Another good tip by the OCU is that of recommending to expressly mention on the Notary deeds the reasons why the house does not have a high value.
This statement will be crucial if the Treasury finally proceeds to a correction of your taxation and you find yourself having no other option but to claim against it
Of course, email us if you need a lawyer for the claim.... and for the purchase. We will be very pleased to assist you.
María L. de Castro
www.costaluzlawyers.es
"Development Costa Zahara I; Atlanterra (Cadiz)", by Luis Lopez-Cortijo