Governmental Tax - Explain

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25 Apr 2016 12:59 AM by VAO Star rating. 20 forum posts Send private message

Just read online that there is potential Government tax to be levied on most of the properties currently getting sold in Sierra Golf. Any ideas ans has anyone got levied?

Is this levy for targeted at Cash Buyers, Mortgage or both ?

 




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25 Apr 2016 7:18 AM by inspectahomespain Star rating in Orihuela Costa, Spai.... 2417 forum posts Send private message

Vip Supporter

I believe that you are getting confused and this is something that your lawyers or agents should be explaining to you as it doesn't just apply to Sierra Golf, I believe that you are talking about is an additional paymemt levy for La Complementaria tax , which was originally introduced to catch the pratice of underdeclaring property values and paying percentages of value in black money

On the property the initial liability is for 8% ITP or property transfer tax, based on the discounted price that you paid for the property, so for example if you paid €80k and the tax authoriity decides it is worth €120k the the additional tax liability of 8% is due on €40k

The bad news comes in the form of a letter from the local tax office, subject line “Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados” and “Propuesta de liquidación”, which translates as a payment proposal for the ITP asset transfer tax.

This letter demands that you pay an extra asset transfer tax, or penalty ITP tax, on the grounds that the declared purchase price was too low, in the opinion of the tax office. The letter usually comes out of the blue, often a year or more after the deeds were signed before notary.

The best way to counter this is when you complete is to have the lawyer investigate the actual value declared at the tax office and they can establish if there is any extra tax liability

If you do receive a demand then it can be appealed but it is key that you have a spanish mail address, which is monitored because when the tax notification arrives, you have 10 working days to register your appeal

There is plenty of information and advice on this on this and other websites

 


This message was last edited by inspectahomespain on 25/04/2016.

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Roy Howitt Independent Property Consultant www.sonrisaproperties.com www.snaggingspain.com WE CAN FIND YOUR DREAM HOME 627 955 748


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25 Apr 2016 9:38 AM by VAO Star rating. 20 forum posts Send private message

I was getting confused. The post was really negative of Sierra Golf.and confusing. Now I know better. 😊

Thanks.




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25 Apr 2016 2:38 PM by densue Star rating. 164 forum posts Send private message

hello is it not the right time for the tax office to become estate agents????????..........dennis



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