advice needed about Complementary Tax please

You have to remember houses are only selling for half they were before the recession. Many people who have returned to the UK have lost a lot of money. Builders borrowed from the Banks but couldn't afford to finish the houses when the Banks refused to lend more. Many people lost money on Off -Plan for houses which were never built. You should have been warned though about extra taxes but that's Estate Agents for you. The houses were probably originally double the price that you have paid.

I am probably wrong but this was something i was worried about when i bought earlier this year. The true value of the property should have been set when you purchased and you would have paid the 10 % to the government then ? unless this was not in place when you purchased ?

We paid ours and it was valued at slightly less than we paid but our conveyancer got the document with the value signed as a safe guard.

I hope this will be of help to you but do check your documents and see if there is a property value somewhere or it could be you were not told about this when you bought, we were told about it but some people were advising if the value was higher not to pay it and wait to see if the government come after you for the money.

Paulspot wrote:I am probably wrong but this was something i was worried about when i bought earlier this year. The true value of the property should have been set when you purchased and you would have paid the 10 % to the government then ? unless this was not in place when you purchased ?

We paid ours and it was valued at slightly less than we paid but our conveyancer got the document with the value signed as a safe guard.

I hope this will be of help to you but do check your documents and see if there is a property value somewhere or it could be you were not told about this when you bought, we were told about it but some people were advising if the value was higher not to pay it and wait to see if the government come after you for the money.

To "wait and see" is never the best policy, here in Spain, when the government is involved.Remember, they hold the whip and in this country they are not afraid to use it. If you get your bank account or property embargoed, you've got a big problem on your hands.

I hope my reply has not been misunderstood as you say wait and see is not the best policy i was saying that unfortunately they may not have been made aware of this, but if when they bought the government value was the same then they could use that document as proof of the value to fight the case, or if the value was higher then it could be they will have to pay unless they can prove different.

Hi
This is a transaction tax that is calculated on an artificial value. In good times you win and in bad times you loose. Normally that tax should be on the sales value, but in Spain a lot of people paid money "under the table". The government responded on this by setting their own value on the transaction. You can win the court case, but it must be at least 2.000 Euros extra. A law suit cost money. If it is just some hundred Euros. just pay it.

Hi we have bought a bank repo and have paid the excess tax on the fiscal value because it was not much. Our solicitor advised us to pay as the cost to appeal would be around the same figure. She did say that all other cases she had appealed they had won but the excess tax was quite a sum. Her name was adriana perez and she is based in San Javier.we also knew this excess tax could crop up before we agreed to buy it and our solicitor also told us this at the time.

Sorry it has taken ages to reply to your interesting post. We bought a bank possession in July last year using Casa Manuel. We were not advised by them or the solicitor that tax would be recalculated at a later date on the Cadastral value which was 2 times the actual value. In September 2014 we received a demand for an additional 4000€. I tried to investigate the legitimacy of this with my daughter who works for a large law firm in Barcelona. In the end I came to the conclusion that we would have to pay it. It seems very unfair as like you the house was not habitable and it required a lot of money to make it so. The local attitude is that you have a bargain and the tax is a small price to pay. It must be very upsetting to people who can't stretch their budget to pay this but fortunately we could. Sorry I can't be the bringer of better news. An appeal may be possible but I think to just pay up is the less stressful option.

Hi sorry its been so long in replying , I had to take a job working away for a few months , in order to get the funds to pay , this tax bill , yes we found out you got to pay , no way around it really , just got to pay , so ive worked away and got the money now , luckily ive had the opportunity to do this , otherwise id of been stuck with a big bill and no way of paying , thanks for all your replies

commiserations to you. I can't comment but can offer you an English speaking solicitors who have dealt with our house sale & many other issues. Parra y Gonzalez phone no:
966 703 248 are in Torrevieja. They have given us a good service whereby we can ring for general advice on house & other matters.

Update ; just been phoned by my Spanish next door neighbour , who knew of our situation , to say that ; there has been a court rulling to say that this tax is illegal and no longer should exist and those that have paid it , can claim it back ,
My neighbour works at the town hall so should be well informed , but I can not find anything on the internet , has anyone else been told similar ? Thanks glynn