Modelo 212

I have been informed that when Brits buy a house in Spain the Spanish government has been ripping them off by charging them 30% tax istead of the 15% the Spanish are charged.  Apparently this form, Modelo 212, is a way of recovering that money but it has to be filled in by the solicitor who dealt with the house purchase.  Can anyone verify this and/or tell me more about it and how I can go about it if it is true as my solicitor won't reply to my emails or calls as he is responsible for giving my bank details to the developer who helped himself to €419's from my bank account to pay HIS Capital Gains Tax and I can't get it back as I didn't realise it had gone until they tried to take it for a third time and, as a result, the bank bounced my mortgage.  I managed to get the last 2 amounts of money back but the first amount they took had been too long ago and the bank couldn't reclaim it.

Bit confusing. Everybody pays the same tax when purchasing a property i.e transfer tax (or IVA on a new build) which is 7%

Capital gains tax is paid when selling a property. There used to be a discrepancy between what residents and non-residents were charged (as distinct from Brits and Spaniards). This changed when the EU smacked Spain on the wrist, and now the rate is 18% for all. I forget when the change came in, but I think it may have been 2006 or 2007. Someone will confirm that. Whenever the new legislation came in, as usual there was a delay in it actually being implemented. Recently a case was reported where a British seller had succesfully managed to get their tax liability back dated and reclaimed the difference paid between the old rate and the new. A similar claim may be possible but it will depend on when the transaction actually took place. But it seems unlikely that you paid the developer's capital gains tax. Are you sure it wasn't Plus Valia? If so, check your contract carefully, because although this tax is normally paid by the seller, sometimes an agreement is made for the buyer to pay it. If your contract states that, then you would be liable for it. But why 3 times?

Thanks Roberto.  It was the Plus Valia, but I was told that the Plus Valia was the developers Capital Gains Tax at a community meeting where our administrators brought along a lawyer who said under no circumstances should we pay it.  But, it was too late they had already taken the money from my account.  My mortgage is all in Spanish so I haven't got a clue what was agreed.

When we were due to sign for the house the meeting was changed at the last minute and neither me, nor my wife, could get time off work at such notice so I had to give my solicitor power of attorney which is why I knew nothing about this Plus Valia.  When all was done my solicitor gave me the balance of the money back that I had lodged with him and he assured me there was nothing else to pay.  So I had no reason to check for money taken out of my account without authorisation.  I don't know why they took the money 3 times and Bankinter have been very unhelpful, or sympathetic about it.  Even now, after a year, my bank statement shows a total withholding each month of €419's.  The bank refuse to remove it from my account and they say that the amount of money can be taken at any time which is why I have to check my account every day.

Plus Valia is similar to Capital Gains tax, but is charged by the town hall and is based on the increase in the value of the land between buying and selling. Like I said before, it's customary for the seller to pay this tax, and as far as I know, unless otherwise specified, legally it is the sellers obligation. However, a seller and buyer may agree that the buyer pays it. You need to check your original contract with the developer to see what it says about whose responsibilty the various fees and charges will be. Or on your escritura (or copia simple if you don't have the original). It should be recorded there too. Not your mortgage contract.

Still a bit confused by your last two sentences. You said €419 was taken three times - you got two of these back. But then you say "Even now, after a year, my bank statement shows a total withholding each month of €419". Are you saying they are still taking €419 every month?

I don't quite understand why YOUR bank are being difficult. Banks certainly work in mysterious ways here - if someone has your account details, it seems they can request transfers from your account, and the onus is on you to check your account and contact your bank to stop (or return, within a certain time frame) any payment you disagree with. I still find this hard to believe even after many years dealing with Spanish banks. BUT, if you instruct your bank to refuse any requests from a particular company (in this case the developer presumably?) they should abide by that instruction. They have computers (!!) and can easily flag your account with such a request.

But remember, if you agreed (knowingly or otherwise) to pay the plus valia, then you are liable and unfortunately will have to pay it if you don't want a debt registered against your property.

Hope this helps somehow?

Thanks but as I said the bank flatly refuses to cancel the amount of €419's which is showing as still owing every month.  Even though they admit the amount was paid once they claim that the person who took it could still try and take it again.  I have protested and complained that it had left me short of money when I was about to take my holiday.  The answer I got from the woman who (allegedly!) looks after my account was "Don't blame us just because you haven't budgeted for your holiday properly".  I have been through to their customer services several times to see if the amount could be removed and they say it is there for good, or until it is taken.  I would like to close my account with Bankinter but my mortgage is with them and the hassle of changing accounts I just couldn't be bothered with.  I now keep most of my money back in my English bank account.  My lawyer is responsible for this mess which is why he avoided me when I went to see him and he refuses to answer me calls.  He obviously made the deal to allow them to take the Plus Valia money, or he overlooked it and is negligent.  Either way I am out of pocket and my Escrutura is in Spanish which I can't understand.

The easiest way to deal with it may be to close the account, but I understand that doing so would complicate things for you regarding the mortgage. I'm still rather puzzled by this (as I'm sure you are!) Is there any way you can find out how much the plus valia was? Was it just €419? Or was it a larger amount to be paid in monthly installments? (I would find that rather strange - it's more likely to be requested as a one-off payment, or possibly two half-yearly amounts). If in fact you are liable for it, you should at least have some paperwork pertaining to it somewhere.

In your escritura, look for an item titled "Gastos". it should read something like this: ".......los gastos que se deriven del presente otorgamiento séran satisfechos por la parte compradora, excepto el impuesto sobre el incremento del valor de los terrenos (plus valia)" Roughly translated: the fees arising from this transaction will be for the account of the buyer, except the plus valia. If this last phrase is missing, or if it says something like incluyendo plus valia (including plus valia), then it is your responsibilty to pay it.

I hope I'm helping with this a bit? Anyone else, feel free to add your thoughts!

Yes thanks for trying to help.  At the community meeting the guest lawyer stated that the developer was trying to charge everyone on the urbanisation €419.67 and he advised everyone not to pay it as it was not our debt.  When I told them they had tried to take the money from me 3 times they were horrified.  What I find the most disgusting about all this is the bloody-mindedness of the woman who supervises my mortgage and bank account.  It makes me wonder if she and my lawyer had an agreement between themselves.

Hi Orda, you are having a sorry times of things lately! Plus Valia would only be once and at 1% and not throught the bank as whatever it is must have been set up as a standing order for something.

The developer may be trying to charge a higher community fee or a back charge of it. Try to get your lawyer to find out as if he had power of attorney, he must have signed something for this.

Ensure he doesnt have power any more too.

You could close the account at that branch and open one at another branch of Bankinter transferring your mortgage and services, that should get rid of the debt. let them chase you, but you need to find out exactly what it is as if its anything to do with Hacienda, they will find you and embargo the account

Hi Rixxy, it was definitely only ever supposed to be one payment, but it shouldn't have been paid by ME in the first place.  From what I can find out it has been an error but nobody is prepared to take the blame.  The Bank is blaming my lawyer, my lawyer blames the developer, I blame the bank and the lawyer.  I think the best thing to do is your suggestion of opening another account in another branch, so I'll do that. Thanks.

Good luck with it.

"Plus Valia would only be once and at 1%"

Huh? 1% of what? Increase in valor catastral? I've never heard this calculation.

Incidentally, I just Googled Plus Valia, and there is a shocking amount of mis-information out there! Mostly talking about the difference between buying and selling price as declared on your escritura and about black money etc. etc., which of course have absolutely nothing to do with plus valia

No - its based on land value increase between when bought and when sold, but there is a lot of mis information. The seller always pays this UNLESS its agreed prior to notary that the buyer does.