Can anyone advise on revaluation tax?

I have just been informed by my Solicitor that he has received notification from the Tax Office which states that the value which the tax authorities think is appropriate for my property is double the purchase price. This figure is based on the rateable value as shown in the local rates and as a consequence, the tax office demands the difference of the taxes which amounts to a further 50% approx.

The conveyance was completed in April 2014 and I paid 10% Property Tax, a Notary Fee, Solicitors Fees and a NIE card fee as instructed and I was not warned of any further tax charges by either the Solicitor or the Estate Agent.

I would appreciate any advice, has anyone else experienced similar problems ?

Hi if your property is worth double what you paid for it whatever the reason, bank repo or paying some cash through the back door etc. You will almost certainly have to cough up if it is not you need some good advice as to your position and should have some recourse to appeal. I would firstly ask your Solicitors the question why!!

Good luck

Thank you for your swift response. The purchase was for the full asking price and completed through the proper procedures, the Solicitor was instructed by the Estate Agent and I was assured that all relevant checks were performed before completion.

Ok was the full asking price the same as equivalent properties? if it was the I would say you have a good case but you need to find professional advice as to your position, hopefully someone will point you in the right direction.

Sorry to hear of your situation,can you name the Estate Agent and Solicitor involved this may assist others going through the process of buying.

When we bought our property last November, I had heard of this happening.
It's very confusing, I double checked with our legal rep saying I had heard of this
She checked and said the tax we were paying was correct. But I still arnt so sure.
Think it's something to do with original value when new compared to what the values,are now. But again not sure. Like I sat very confusing.

Simple really, the value today is about half of what it was in 2007 and if the rateable value was set in 2007, probably you only paid half the rates. All relavant checks done by your solicitor????????????? hmmmmmmmmmmmmmmm. I would say the buck stops at his door,get yourself a good lawyer. Best of luck.....Mike

I am looking at buying a property in Ciudad Quesada - there are some very attractive prices - now I think I know why. Looking at this thread it seems to be possible for example to buy a property for €112'000 (IPT would ordinarily be 10% so €11'200) but get charged IPT based on the valor cadastral which could be a lot higher - for example the property may be valued at €160'000 in which case the IPT would be €16'000. is this correct? If so I would question the sense of buying property - what a con! Comments please.

What a nightmare for propective purchasers, I have never been an advocate of renting, ( not for residential use) however, if this new additional tax is true, it will certainly be yet another body blow for property sales. Can anyone reading this give a definative answer, as to wether this is fact or fiction? I am positive many pending property decisions will result in a "no sale", or at least a much lower offer, to compensate for the higher tax implication.