avocados

A note of warning should you purchase a house, Hacienda are reviewing the ITP (transfer tax on actual purchase price) paid and billing the purchaser for the difference between it and the Valor Tasacion of the house.

Let me explain, we purchased a property late last year for a stonking good price, unbelieveably good value, no black money, all taxes and expenses paid on time, etc.

We now have received a bill for the difference as described above.

We had expected it, but thought that we might get away with it. So it's not a shock or anything.

To rub salt into the wounds, thay have charged interest at 5%. This is a significant amount of money!!

We won't appeal, as the current valor tasacion of the house is significantly higher than last year (yes that's right, the value of the prop has risen a lot).


Why am I telling u all this?
Well, I think most people are unaware that tax is paid at the Hacienda value and not the purchase price of the house. So you need to factor this in when purchasing so as not to get any surprises.

There are such good deals out there that the amounts can be substantial.

Hacienda have also become clever by including clauses on the proeprty register, informing of their right to re-evaluate all taxes paid for a period of 5 years after purchase.

So better stash some extra dosh under the bed for this eventuality!!

Fred James

Unless of course the price paid is more than their value - presumably you don't get to pay the lower amount?

Fredbargate

I doubt they also give rebates

britishbull

Do you get to know the official value before you buy so that its cost can be taken into account?

avocados

We knew what the valor tasacion was before purchase as a mortgage was used.

Only cash buyers may not know, so a good idea is to get a valuation done.

The interesting thing about this is that Hacienda has used the bank mortgage valuation and NOT the (valor catastral multiplied by the relevant multiplier) as the base figure, the latter being the correct figure.

In our case, the valor catastral is years, if not decades out of date, so of course they couldn't use that figure as the base amount.

Rebates? never!!!

Anyway, We'll visit Havienda and have a little chat to see if there is room for negotiation. My plan revolves around the fact the OH works for the government too, so maybe "But, we're all humble funcionarios" might suffice to get a suitable agreement for all parties.