I want to buy a flat, business premises or garage, and the price is below the value, which the Region Tax Authorities in which it is located give to it. How do I have to notarize it? For the money I actually paid or for the amount the Region authorities say? If notarized or declared for what I am really paying, may the Hacienda (tax authorities) then claim from me to pay more for the property transfer tax?
These and similar questions are to be considered more and more often by those people who want to buy a property today, as is increasingly common, too, that the ministries of finance of the different regions insist the buyer to pay an extra tax to what they have already paid during the purchase settlement, which is called “complementary settlement check values.”
This is because, even though the deed is recorded for the actual price paid for purchase of the housing, the value by the administration of the property is far superior, due to not having revised nor updated downward fluctuations in real estate prices and real market values. That is, there is a clear mismatch between the variable economic reality and static property assessment made by the administration in the best years of real estate boom.
So what happens when the administration says the value is higher than what was actually paid as the price? Two things can be done at this time:
a) Assume the additional assessment declared and pay the amount requested counseling Hacienda of the relevant Region, with interest on late payments.
b) Proceed to appeal the settlement by the statements above, by challenging the administration on values that are not adapted to reality, and this is one reason more weight, among many others, to be argued.
Since the late 80s, early 90s the jurisprudence of both the Supreme Court and the courts of administrative litigation supports the requests of taxpayers in this regard.
Remember that for this you must use all the evidence you have in your favor: the condition of the house, construction works in the house, purchase contract, etc.
If this has happened to you and you do not agree with the assessment made by the Administration, contact us, we can help you.
Oana Dragoi – Lawyer at Alicante Solicitors > Raymundo & Hopman.