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Transfer tax extra charges

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Transfer tax extra charges

Post by eve13271 on Tue Dec 01, 2015 5:35 pm

Can anyone give advise?
Today we received an email from our solicitor, 3 months after being the registered owners of our cave + land saying he had received 'a letter from the Junta of Andalucia claiming more taxes to pay as transfer tax as according to them the properties’ values were not correct and according to them you should have paid 1842,91€ extra EACH of you as according to their appraisal the declared value on the deeds were under declared. So they are claiming an extra of 3685,82€. or we can contest their evaluation.'
Any thoughts on the best way to deal with this?
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Re: Transfer tax extra charges

Post by gtclubman on Wed Dec 02, 2015 9:34 am

Suggest you get advice from your solicitor or another one.
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Re: Transfer tax extra charges

Post by Buff Orpington on Wed Dec 02, 2015 12:23 pm

we had this happen but the solicitor didn't tell us in time to appeal so we got stung for a couple of grand,although the cost of fighting it is about 500e ,so if you are going to fight it ,get on with it quick before the deadline runs out !

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Re: Transfer tax extra charges

Post by eve13271 on Wed Dec 02, 2015 12:27 pm

The solicitor said his fee for appealing is 150€ (VAT not included).
We have up to the 12th of December to submit the appeal against their evaluation.
Maybe worth going for it?
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Re: Transfer tax extra charges

Post by Buff Orpington on Wed Dec 02, 2015 9:02 pm

By chance does your solicitor have a slightly girly first name ?

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Re: Transfer tax extra charges

Post by Lurchio on Thu Dec 03, 2015 6:17 pm

This happened to us. Its a result of the 'old days' when 'black money' in brown envelopes changed hands on house deals, and the legal paperwork contained under declared amounts for the sale as official transfer figures. Every sale is now scrutinised against the valor catastral (you'll find yours on your IBI bill) and a fixed percentage for valuations/ value increase since. If you want to fight it, the Hacienda will want the money up front, then you will have to fight for it back. You will have to pay for an independent valuation (beware, this may strengthen the Haciendas hand) and they will also survey / value. If you lose the appeal, you pay for that as well.
If you don't wish to fight it (or have under declared, and got nabbed.... with all respect to you of course and not saying you have at all!) You can apply to make the payment in 12 instalments.
Swings and roundabouts, I suppose. Our Solicitor quoted 1500 euros, and as yet I haven't met a Spanish Solicitor who would even get out of bed for 150 euros.
Totally your business, but its a nightmare dealing with the Hacienda!!!
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Re: Transfer tax extra charges

Post by Lurchio on Thu Dec 03, 2015 6:19 pm

Sorry, missed out the most important bit, GET PROFESSIONAL ADVICE !
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Re: Transfer tax extra charges

Post by eve13271 on Fri Dec 04, 2015 2:38 pm

Buff Orpington wrote:By chance does your solicitor have a slightly girly first name ?

We use Victorio Heras - He was recommended to us.
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Re: Transfer tax extra charges

Post by Mariposa on Fri Dec 04, 2015 2:57 pm

Lurchio makes a good point.  You used to be able to purchase property here (Notario turned a blind eye) with cash under the table - i.e. paying a lower value which would be decalared on the Deeds and cash on top separately to the vendor.  In 2008/9 this was made illegal.

All reputable Estate Agents should now be explaining to buyers that the above can no longer happen.  It is you that pays the fines in the end, so as with many other things, it is a case of buyer beware and find a good Estate Agent!

As long as you pay a reasonable amount for the property, again as explained by Lurchio above, you are, I understand, able to pay for furniture, cars and other items separately.  Again, get this checked by your Solicitor and have a document/contract drawn up to show this.

Get good advice and I would personally suggest using a different Solicitor, that wasn't involved in the original purchase might be a good idea?
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Re: Transfer tax extra charges

Post by Lurchio on Sun Dec 06, 2015 10:06 am

All good stuff. Almost everyone who has managed to get a 'bargain' in the current property market have become a 'soft target' for the Hacienda. You don't NEED to have attempted to dodge anything, just got a price which the Hacienda reckon is 'suspiciously' lower than you should have. With Banks selling repossessions in unpopular areas for peanuts, makes you wonder how many of those institutions are hit. (Yeah, right).

Anyway, we chose to pay over 12 months because, yes we got a very good deal (without under declaring!), it was less than the OP has been hit for, and to fight it was more expensive and much more hassle than it was worth. We would also probably have shot ourselves in the foot with the survey anyway!

Just getting all the 'extras' (Furniture, appliances, cars etc) itemised on the sale document and properly notarised is a good idea, but keep everything 'real'.

I love Spain, I do............................................
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Re: Transfer tax extra charges

Post by eve13271 on Mon Dec 07, 2015 10:27 am

Thanks for all the advice, the solicitor said 'When the seller bought the property the declared values were more or less the same and there was no problem then. They are evaluating the land as irrigated land but we have to claim there is no water and it is not prepared to be irrigated.' so we will see what happens with that first. Wish us luck!!!!
x
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Re: Transfer tax extra charges

Post by Lurchio on Tue Dec 08, 2015 7:06 pm

All the very best, if not an intrusion, let us know how you get on!
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Re: Transfer tax extra charges

Post by Mariposa on Thu Dec 10, 2015 11:08 am

Good luck!
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Re: Transfer tax extra charges

Post by eve13271 on Tue Feb 02, 2016 4:27 pm

Update!!!
'They have reduced to 1.715€ each (instead of 1.842€).
They have taken in account the cave-house is not good condition but they continue with the evaluation of the land as irrigated land.
If you want to appeal it can be done and I can ask not to pay till there is a decision about the appeal.
In the event you still have to pay it at the end they would charge about 4% as interest.
If you want to appeal I think it will be necessary to get an appraisal of the land.
If you are OK I can ask for estimates to get the appraisal done.'

Should we appeal?
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Re: Transfer tax extra charges

Post by Lurchio on Tue Feb 02, 2016 6:34 pm

Hi, All your business BUT if you decide not to, you can pay over 12 months with a small interest charge. If you lose, its going to be what you owe PLUS costs / surveys / stress etc. Its worth bearing in mind (I think, with respect) that they usually arrive at these figures as a' paper exercise', nobody had yet actually VISITED your place when they decided the amount. Do you think that IF you appealed and they did visit, it could be worse for you? I did, and that's one reason why I decided to get it paid.

Spanish procedures are a nightmare, only you know if you need the stress of an appeal!
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