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Old Aug 18th 2017, 3:34 pm   #1
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Default Plusvalia Tax

A friend of mine has just sold his house (in Menorca ) and he has been advised by his estate agent that he will have to pay 6000 euro Plusvalia tax despite the fact that they have sold their house for 200000 euro less than they paid for it. I was under the impression that this tax was made illegal in Spain at the beginning of the year.
Can anybody advise further on this?

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Old Aug 18th 2017, 3:43 pm   #2
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Default Re: Plusvalia Tax

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Originally Posted by 4857 View Post
A friend of mine has just sold his house (in Menorca ) and he has been advised by his estate agent that he will have to pay 6000 euro Plusvalia tax despite the fact that they have sold their house for 200000 euro less than they paid for it. I was under the impression that this tax was made illegal in Spain at the beginning of the year.
Can anybody advise further on this?

Thanks
Michael
Question would be why the estate agent advised? It's the town hall he has to contact and yes, if a loss he shouldn't pay. He should get a lawyer to sort it out. Often people pay in advance and then struggle to get the money back.
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Old Aug 18th 2017, 4:19 pm   #3
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Default Re: Plusvalia Tax

Don't know why the estate agent advised but he did. So you are saying he does not need to pay this tax,not even to pay it and claim it back later.
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Old Aug 18th 2017, 10:37 pm   #4
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Default Re: Plusvalia Tax

Why would anyone take the word of an estate agent?
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Old Aug 19th 2017, 5:56 am   #5
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Default Re: Plusvalia Tax

I've met precious few so-called "estate agents" that know much about buying or selling property. You should NEVER take the word of the estate agent. Your abogado or notario can tell you the truth.
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Old Aug 19th 2017, 7:43 am   #6
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Default Re: Plusvalia Tax

Quote:
Originally Posted by 4857 View Post
A friend of mine has just sold his house (in Menorca ) and he has been advised by his estate agent that he will have to pay 6000 euro Plusvalia tax despite the fact that they have sold their house for 200000 euro less than they paid for it. I was under the impression that this tax was made illegal in Spain at the beginning of the year.
Can anybody advise further on this?

Thanks
Michael
The law was changed in February. The tax is not illegal, but it cannot be charged when the house is sold at a loss.

https://www.spanishpropertyinsight.c...rty-sold-loss/
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Old Aug 19th 2017, 8:06 am   #7
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Default Re: Plusvalia Tax

I hope he did not pay it to the agent!
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Old Aug 19th 2017, 8:33 am   #8
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Default Re: Plusvalia Tax

Those comments about the agent do not apply. All he did was advise my freind that his house sale would be subject to Plusvalia tax and he did an estimate based on the rateable value of the property and how long they had lived at the property. His actual advise was to go to the town all for a firm cost of the tax.
What I was asking on here was if anyone on here had any experience of this tax.
Thankfully Fred has given a useful link to this question.
One more question Fred. Is it true that they may have to pay the tax and reclaim it later?

Thanks,
Michael
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Old Aug 19th 2017, 9:24 am   #9
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Default Re: Plusvalia Tax

Here in Mallorca, 3% of the sale price is always deducted from the sale price, and paid to hacienda by the buyer (via the notario). The seller, upon proving no tax liability, can reclaim it. It can take up to 2 years to get it back.
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Old Aug 19th 2017, 9:43 am   #10
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Default Re: Plusvalia Tax

Hello amideislas,
The retention that you refer to is not Plusvalia tax,which I believe is nothing to do with the Hacienda.
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Old Aug 19th 2017, 10:01 am   #11
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Default Re: Plusvalia Tax

That's correct, the 3% retention is against CGT. Plus Valia is paid to the town hall, not Hacienda.

As for paying and reclaiming, I don't know the answer to that but it wouldn't surprise me as the town halls are so short of money that they will grab everything they can and argue the toss afterwards.
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Old Oct 14th 2017, 3:37 pm   #12
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Default Re: Plusvalia Tax

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Originally Posted by Fred James View Post
The law was changed in February. The tax is not illegal, but it cannot be charged when the house is sold at a loss.
We sold our property at a loss in May 2017 and our lawyers told us we had to pay the Plusvalia tax and claim it back. We had no choice! Now we are having difficulties getting a lawyer to reclaim this tax for us. (We sacked the aforementioned lawyers). We have all the necessary paperwork but having difficulty finding someone to actually reclaim this tax rather than say they are dealing with it........ 5 months on and nothing. Anyone had decent assistance with this seemingly straightforward claim?

Last edited by Rosemary; Oct 14th 2017 at 5:49 pm. Reason: corrected quote
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Old Oct 14th 2017, 5:50 pm   #13
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Default Re: Plusvalia Tax

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We sold our property at a loss in May 2017 and our lawyers told us we had to pay the Plusvalia tax and claim it back. We had no choice! Now we are having difficulties getting a lawyer to reclaim this tax for us. (We sacked the aforementioned lawyers). We have all the necessary paperwork but having difficulty finding someone to actually reclaim this tax rather than say they are dealing with it........ 5 months on and nothing. Anyone had decent assistance with this seemingly straightforward claim?
Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

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Old Oct 15th 2017, 2:19 pm   #14
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Default Re: Plusvalia Tax

When I sold a property some 3 years ago,before we went to the Notary for exchange,I was advised to get a paper from the Hacienda which stated I was a fiscal resident,otherwise 3% would be automatically taken.I did this & no 3% was taken.I found this a new system from a previous sale which had been several years ago.I am now arranging a sale & was again told I must ensure that I do this.I did mine via my Gestor who always does my tax return,so it was straightforward for a fee which saved me a headache.
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Old Oct 15th 2017, 3:26 pm   #15
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Default Re: Plusvalia Tax

Quote:
Originally Posted by Fred James View Post
The law was changed in February. The tax is not illegal, but it cannot be charged when the house is sold at a loss.

https://www.spanishpropertyinsight.c...rty-sold-loss/
How does one define a loss?

Might sound simple, but is this when it's sold for less that it was purchased for or when it sells for less than the cadastral value? Who defines what the BMV is?
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