The Comments |
Hi everyone! We are buying a re-sale on Arenal Duquesa and are experiencing some problems regarding transfer of rights taxes, does anyone understand what this is about please? any info would be appreciated. M
0
Like
Spam post or Abuse? Please let us know
|
|
|
Hi Alan
When you purchased direct from the developer off - plan, were you informed that you would have to pay additional fees, ie VAT, plus Stamp Duty on the whole price of the property? It seems to me that the developer is now imposing difference taxes etc, which did not exist six months ago when we entered into our agreement.
Your reply would be much appreciated.
0
Like
Spam post or Abuse? Please let us know
|
|
Dear Mimmie,
We were told to build in approximately 10% extra to the purchase price, to cover extra taxes and legal fees.
Best Margo This message was last edited by Margo on 6/12/2007.
0
Like
Spam post or Abuse? Please let us know
|
|
|
Hi Mimmie, Yes in line with the other replies I was told to add 10% onto my purchase costs to cover IVA, legals etc. This was in 2004 so costs could have increased in that time if you have purchased after 2004. If you have built those costs into your original budget you need to look closely at any additional costs that you may have been asked for since. If you refer to your reservation receipt it should have your expenditure explained.
Regards, Alan
_______________________ To Dare Is To Do
0
Like
Spam post or Abuse? Please let us know
|
Thanks to all who have offered advice on this subject. We were obviously told the same, ie 1O-12 percent over and above the price of the property,that was in December 2006, but it now seems things have changed with the new developer imposing different rules and we are being asked for an an extra approx. 14,000 euros which is obviously devastating and puts us in a bit of a tight spot to say the least, so please all be aware regarding your budgets.......Regards M
0
Like
Spam post or Abuse? Please let us know
|
Mimie
your 14,000 works out at an additonal 7% on a purchase of an apartment at 200,000 euros - therefore if 200k is your re-sale purchase price then they are hitting you for the IVA twice.
This is definelty ilegal and if the developer is insistng on this they are basically now not allowing the transfer of the contract prior to financial completion which by law is not allowed anyway. It basically stops off-plan buyers making profit and paying no taxes.
In effect if a transfer of contracts is not allowed prior to financial completuion then this 7% has to be paid by the original buyer as he must comply to IVA regulations - you shouldn't have to pay it twice. you then only pay it on your agreed purchase price - hope you catch my drift
Speak with your lawyer as every one who buys has to budget at around 10-11% on re-sales therefore you may be misrepresented. ALso if the percentage is higher then re-sales would not take place and the market then would come to a shuddering halt - who wants to pay near 18% in taxes - thats never gonna happen.
Have you gone to private purchase contract - if so your solicitor should have clarified this before going to PPC - if you haven't and they insist on this then i would pull-out and be grateful you are only losing around 6000 euros in a deposit.
anything else come back to me
cheers
Pistol Knight
0
Like
Spam post or Abuse? Please let us know
|
Hi Pistol
Thanks for your very interesting reply!
We have just reached the Contract stage and are arguing this point of the 7% with our lawyer, but are not getting very far - the lawyer seems to think this is quite normal and that in the past the developer has just torn up the old contract and replaced it with the new buyer and now the developers are saying the Transfer Tax has to be paid, which of course is over and above our original 10-12% which we budgeted for.
We obviously are not going ahead due to this at the present time and have now gone back to the lawyer asking how much we would owe in fees etc, We will also do our utmost to get back our deposit, plus of course we have paid half of our furniture bill too.
Apart from the obvious worry, it is with regret that the dream has been dashed, but what appears to be an illegal venture.
Regards M
0
Like
Spam post or Abuse? Please let us know
|
Hi everyone,
Just to make sure you are all aware of the situation.
Anyone purchasing a RE-SALE on Arenal Duquesa will have to pay the following:
Price of Property + 7% IVA (VAT) + 7% Transfer Tax + 1% Stamp Duty plus legal, utility costs etc.
This is because the property is brand new and no been lived in.
Regards M
0
Like
Spam post or Abuse? Please let us know
|