Plusvalia Tax
#1
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Joined: Mar 2013
Posts: 18
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?
Thanks
Michael
Can anybody advise further on this?
Thanks
Michael
#2
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Joined: Feb 2013
Posts: 6,148
Re: 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?
Thanks
Michael
Can anybody advise further on this?
Thanks
Michael
#3
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Joined: Mar 2013
Posts: 18
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.
#4
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Location: london/gandia
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Re: Plusvalia Tax
Why would anyone take the word of an estate agent?
#5
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Joined: Feb 2011
Location: Mallorca
Posts: 19,367
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.
#6
Re: 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?
Thanks
Michael
Can anybody advise further on this?
Thanks
Michael
https://www.spanishpropertyinsight.c...rty-sold-loss/
#7
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Joined: Aug 2009
Location: Costa Blanca
Posts: 3,143
Re: Plusvalia Tax
I hope he did not pay it to the agent!
#8
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Joined: Mar 2013
Posts: 18
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
M
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
M
#9
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Joined: Feb 2011
Location: Mallorca
Posts: 19,367
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.
#10
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Posts: 18
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.
The retention that you refer to is not Plusvalia tax,which I believe is nothing to do with the Hacienda.
#11
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.
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.
#12
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Joined: Oct 2017
Posts: 2
Re: Plusvalia Tax
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 4:49 pm. Reason: corrected quote
#13
Re: Plusvalia Tax
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?
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.
Rosemary
#14
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Joined: Apr 2017
Posts: 878
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.
#15
Re: Plusvalia Tax
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/
https://www.spanishpropertyinsight.c...rty-sold-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?