Talk Quesada forum

We sold an apartment in Rojales a couple of years ago following which we were sent the Suma bill which we duly paid. This tax is plus valia - the tax on the added value, i.e. profit on the sale of the property. The issue we have is that we didn't make a profit, we sold at a value less than the value recorded on the Escritura.
We have since visited the local Suma office to record our complaint and request a refund! A few days ago we received a reply 5 pages of 'legal speak'. Today I visited the Suma office to ask her to explain. It seems they will not consider our complaint as we didn't lodge the complaint within one month of receiving the suma bill!
My question is has anyone else sold at a loss and been more successful if they complained about the tax levied.
Any help would be appreciated.

As far as i can remember when you receive the "plus valia" bill & you have sold at a loss, you should let your legal team send the bill back within 15 days (i think) of receiving it & without paying it. You will then most probably get another bill some weeks later, you do exactly the same with that one & then you will hear nothing more from them. Failure to send the 1st one back within the stated time means you must pay the amount in full. That is what my Lawyer told us.

Thank you for your reply. I wish our legal advisor had told us that!! A bit late for us to do anything about it now.

What is the plusvalia tax in Spain?
The plusvalía is a local (municipal) tax charged by the town hall on properties when they are sold. It is calculated on the rateable value of property and the number of years that have passed since the property last changed hands. The objective is to tax the increase in the value of the land on which the property stands, some of which is due to improvements to the area carried out by the local government and the community at large.
The base for this tax is the valor catastral (an administrative value that is usually lower than the market value, sometimes considerably so) of the property. The amount due in tax will depend on how long the seller has owned the property: the longer the period, the higher the amount of tax.
Who pays the plusvalia tax in Spain?
By law the vendor, though both parties are free to negotiate who pays it. During boom times (like the years 2000 to 2007), in a vendor’s market when vendors have a stronger negotiating position, buyers sometimes agree to pay it, but in normal times, and especially in a buyer’s market like the one after 2008, vendors are rarely in a position to ask the buyer to pay this tax.
If you are a vendor, and you are resident in Spain, you are better off paying this tax yourself, as if the buyer fails to pay it, the tax authorities will come after the vendor.
If you are a buyer, and the vendor does not live in Spain, you are better off paying this tax on behalf of the vendor using funds withheld from the property price. That way you can be sure the tax has been paid. Because if the vendor doesn’t pay, and doesn’t live in Spain, the tax authorities will come after the new owner.
How do you pay the plusvalia tax in Spain?
You have 30 days from the date of sale to pay the plusvalia to the town hall.
If you (the vendor), are not resident in Spain (whatever your nationality), the buyer may insist on withholding funds to pay the plusvalía on your behalf, as the new owner would become liable for the plusvalía in the event of non-payment (i.e. if a non- resident does a runner without paying).

Thanks for the explanation Fred. Have you any idea how they would calculate the tax approximately. I thought València had stopped it especially if you’d owned a property for 7 years or more

We had owned the property for more than 7 years so I guess it still has to be paid.

I understand that if you are residents over a certain age and if it’s your main residence no tax to pay?

Yes but you must have been living there for more than 3 years but only applies to Capital Gains Tax