Plusvalia tax

Hi All 

Can anybody who has completed tell me if they have paid the plusvalia tax,local tax.I was under the impression that this was paid by the developer.

I am in dispute with my solicitor, who has invoiced me for this,in fact I have paid in Feb 2008 the estimated invoice before completion and looks like I have been stiched by my own solictor to the tune of 4k euro THere name will appear later unless I get some satisfaction.

The amount of this plusvalia tax is 1900 euro.

If anybody is willing to discuss there solictor costs please PM me

Ken

Hi Ken

I can remember bringing the subject of it up a few months prior to completion and told him that I would not be paying it as it was not my duty to pay it.  He said that he would speak to the developer and if they charged we would claim it back.   Consequently we do not appear to have paid it.  However the charge was only to be 350.00 euros nowhere near 1900.00. 

What is your sols final bill?  Has he itemised Plus valia?

Hi Ken

I have just instructed lawbirds in marbella to deal with my purchase and they charge 1% plus vat of the purchase price subject to a minimum charge of £1800 euros,also if you instruct them then this cost includes the cost if the NIE NUMBER.
What is the plusvalia tax for and do the developers usually pay it just so I can check with my lawyer

Steve 

Hi ken

Just spoken with Ricky about the plus valia, he seems to remember our sols telling us that the developer paid it. 

Hi Steve

For the record Plus Valia is as follows 

"The other tax on property sales is the Arbitrio sobre el incremento del valor de los terrenos, the municipal tax on the increase in the value of the land since its last sale. This is usually called the Plus Valia for short and it can vary widely.
In the case of an apartment or townhouse in a new urbanisation, where little land is involved, and where there has been no real increase in value because such a short time has passed, the tax can be very low. It will be much higher if you buy a house with several thousand square metres of land which has not changed hands for 20 years and which has recently been re-zoned from rural to urban land, thus jumping greatly in value.

This tax is based on the official value of the land, which is always lower than the market value and it varies from 10% up to 40% of the annual increase, depending on the time between sales and the town where it is located. The land is officially re-valued periodically for this purpose.

Do not confuse this tax with the Tax (I think is 18%),  for all capital gains tax on profits from the sale.

You can find out exactly how much your plus valia will be simply by going to the municipal tax office in your town and asking. They keep the records there for each property and will be glad to tell you the assessed value, so you can find out in advance. Or have your lawyer or property consultant do it.

The plus valia tax can be charged directly against the property itself, meaning that an unscrupulous seller might promise to pay it and "forget" leaving the new owner to pay it."  In our case our developer, it may be that they have paid for some apartments but not all...this however is only my asumption.  In theory the charge should be realatively the same for all apartments as it is the land that this tax is due on, not the apartment.

Hope this helps Steve

Tracey

Hi Tracey in answer to your question my lawyer as itemised this plusavia tax at 1900 euro,it would seem I have paid for the bloody block,


Steve your lawyer sounds reasonable ,but ask the questionabout plusavia tax.


Im now climbing the wall in anger ,you would think that you could trust your bloody lawyer,which by the way is Andersons .

They also charge 1.5 % plus all other bits and bats seperatly ie  nie no 200Euro plus vat as an example.

Maybe over there sooner than I thought.


Ken

Hi Tracey 

Yes there are many others who have completed but as yet nobody else as contacted me.

Trouble is the lawyer will not answer the phone or reply to emails,or texts

Ken

Typical!  

As my late father use to say 'Solicitors are bigger crooks than the villans!'  

Wait until you are next there and make an apointment to meet with sols to iron out your differences.

Tracey

Thanks for your info I will make sure my lawyer looks into this and try to find out how we all stand with this

Steve

We are still looking into it from our end for you.....as ever, I'm waiting for a reply from the solicitor! Margo

Thanks To Tracey and Margo for there input ,To all the others is it a   secret?

Ken

Ken,

Sorry, I don't know as I am away on business and the paperwork is in my office at home.

Paul.

i too don't know.  the only tax i recall was the iva tax that we had to pay, the one your talking about i would have to check paperwork and unfortunately its in spain and i wont be back until mid november. i will have a look tho ken

suzanne

i do seem to remember an amount between 2-300 euros for some sort of tax... i think... i'll check

This message was last edited by peps on 10/26/2008.

As far as I am aware the duty to pay the Plus Valia is on the seller, not the buyer. After all, it is the seller who has benefited from the increase in property value.

I use anderson and they estimated €750 for the Pulsivia Tax for me

We also used Andersons and they estimated the cost to be 750Euros.

On my original estimation of costs from Anderson they have put 850 euro,on my final invoice it is 1900 euro.

The fact is this should be paid by the developer,not the purchaser.

I have had confirmation of this from two seperate Abogados firms today.

My conclusion is that Andersons are in the pocket of the new developers,and are not working to the clients benefit.

I suggest you both check this out if you have not already paid.

Ken

Ken as my post said a few back this tax is legally due  by the seller of the property and my Spanish solicitor also confirmed this around the time of our completion  Jan 2008. 

Here's my reply from the solicitor. "Good morning,
 
In practically all contracts at ARENAL DUQUESA was agreed, that the buyer had to pay the plusvalue tax.
 
We have paid this tax on your behalf.
 
Kind regards,
 
TERESA PÉREZ DEL VALLE
Abogado"

I have sent her another email asking her how much because our papers are in Spain. Will let you know............. Can't say as I'm over the moon about it, considering other people didn't pay, but there you go.  Good job I'm so happy with the apartment, or else I would have been REALLY mad. Margo