Complementary tax-an injustice
 

When will something be done about complementary tax, which I gather is now illegal in Valencia, and, I assume must be elsewhere as well.
There are horrendous increasing, reports of people having money removed from their bank accounts by the Hacienda, after buying a "bargain."
Some have appealed, involving them in time consuming, financially draining court cases, and some were not successful.
Isn't it time the Government stamped down on the Hacienda to stop valuing property at pre 2007 values and demanding the difference between their valuation and what the property actually sold for.
It is nothing but robbery !
I realise how this tax came about, by unscrupulous people under declaring, but it is punishing the honest people who bought in good faith, and causing misery and hardship.
Spain seems to be hell bent on putting off people investing in this country, and pushing out those who have already suffered.

Re: Complementary tax-an injustice
 

Hola

Would it not be simpler to base the tax on the catastral value - then there would be no differences.

Davexf

Re: Complementary tax-an injustice
 

Two things about this.

Firstly, the tax is not illegal in Valencia. The ruling was that the Hacienda could not just not do a "desk" valuation. In other words, they had to go and see the property to make sure it was appropriate.

Secondly, whilst I am not defending the Hacienda, but they are not making it up. They are just implementing the law as set out by the government. The process is set out in a real decree.

There is no doubt that the whole tax legislation requires revising. The personal allowances haven't changed since 2007. There was a report that Rajoy had said there will be changes in personal taxation next year (election year !), but what that will turn into remains to be seen.

Re: Complementary tax-an injustice
 

Seriously, what possible motivation to change it? It could decrease tax revenues. And that's a big no-no.