Warning! If you bought a property bargain in Spain, the Spanish tax office might require you to pay extra tax!
The Spanish property market is low and properties are being sold at low prices, but the Spanish Tax office still wants to get the transfer tax according to their property value.
The tax office has a value for each property that is not always according to the market. When buying a property, the tax is paid according to the sale price, and if the sale price is low, the tax will be low, and the tax authorities might not like it. Therefore, they have a minimum value established for each property, and when the property is transferred, the tax authorities might check the sale. So what happens if the tax paid is not the right one? They will require you to pay an extra tax.
The tax office has up to 4 years to claim you to pay the tax.
Cc Lawyers Alicante advice:
If you are buying a property at a low price, we advise you to make sure that the price is according to its minimum tax value. If the price is under its minimum value, and you think that the sale price is realistic and fair, you should get an appraisal before the purchase or before doing any works or renovations on the property. If you get the appraisal before the purchase, you can ask the Notary to include it in the Deeds. Therefore, the tax office will see the report with the property value and this might stop them from claiming anything. At least the tax authorities will know that you will fight the extra tax in case they claim you.
If you receive the extra tax claim, you can appeal it. For appealing it you must get an appraisal, but if the tax authorities claim you the tax difference 3-4 years after you purchased it, the property value might have raised (renovations, higher market, etc.).
Cc Lawyers Alicante will check the minimum value of the property for you and will inform you if the sale price meets the tax office requirements. If it doesn’t, we will advise you to get the appraisal in case you have to appeal.
Checking the minimum value is included in our property purchase service.
You can contact us here.
Cc~Lawyers will protect your interests and will make the purchase of your property in Spain a stress-free experience