Plusvalía

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gerryh
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Plusvalía

Postby gerryh » Fri Sep 01, 2017 3:10 pm

I believe that if/when we sold our property there would be a plusvalía tax payable.
This tax, I believe, is based on the increased value of the land that the property occupies and is based on the cadastral value.
So do they use the increase in the cadastral value between the date the property was originally bought and date that the property was sold?
Presumably the plusvalía is a percentage of the increased value?
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Gerry
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firsttango
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Re: Plusvalía

Postby firsttango » Fri Sep 01, 2017 4:30 pm

I don't thinks there is a preset formula that you can use as the rate is set by your Ayuntamiento and it varies from one town to the next, however, I think you can actually ask them for an estimate.
I seem to recall that a few months ago the Spanish Constitutional Court ruled that if the property is sold at a loss that there is NO plusvalia tax to pay.

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gerryh
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Re: Plusvalía

Postby gerryh » Fri Sep 01, 2017 5:20 pm

Highly unlikely I will be selling at a loss.
The cadastral value is a ridiculously low €7382.01 and the declared purchase price, on the escteturia, is fairly low.
A lump sum was paid in cash as that was the way it was done when we bought the property many years ago.
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Gerry
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firsttango
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Re: Plusvalía

Postby firsttango » Fri Sep 01, 2017 5:30 pm

Yes I recall those days, wasn't it called "B" Money or Negro

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Re: Plusvalía

Postby Free at Last » Fri Sep 01, 2017 8:06 pm

gerryh wrote:I believe that if/when we sold our property there would be a plusvalía tax payable.
This tax, I believe, is based on the increased value of the land that the property occupies and is based on the cadastral value.
So do they use the increase in the cadastral value between the date the property was originally bought and date that the property was sold?
Presumably the plusvalía is a percentage of the increased value?
Cheers
Gerry


Gerry, the Vélez-Málaga Ayuntamiento has a handy online calculator to enable you to see what your plus valia liability would be. Just enter a hypothetical date of sale plus the other information and it will give you the relevant amount. It proved completely accurate when I sold my house a few months ago.

http://www.velezmalaga.es/index.php?mod=plusvalia

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gerryh
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Re: Plusvalía

Postby gerryh » Fri Sep 01, 2017 10:07 pm

Thanks for the link.
So a plusvalia of €331.07 which isn't much.
It confirms that plusvalia ids based on the catastral value of the land.
Part of the reason for my question is that I was speaking to some friends this morning.
They have recently sold their house and bought a different house, both houses herein Spain.
She said that they had paid, to their solicitor 4% retention, I thought it was 3%?, and a few thousand for plusvalia.
I thought the plusvalia came out of the 3% retention?
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Gerry
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Paulinmalaga
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Re: Plusvalía

Postby Paulinmalaga » Fri Sep 01, 2017 10:25 pm

How do you enter the figures? I ask because after dinner this evening at our friends house in Torre del Mar we had ago on the Velez calculator and in put the " Valor Catastral del Suelo" exactly as its printed on their recent IBI ( 29.668,87 ) the result was as 3.2€.......in no way is that correct I feel sure.??

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Re: Plusvalía

Postby AkoAko » Fri Sep 01, 2017 10:59 pm

The retention payable if the vendor is non resident is towards a possible Capital Gain liability due to the Hasienda should it be applicable , if its not applicable then its refundable but it has to be reclaimed within a strict time frame .

Plus Valia is payable by residents and non residents and charged by the local councils , its their cut of the profit on the theoretical increase in value of the Urban land but it also can be disputed and if proven that there was no profit it also can be reclaimed .

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Re: Plusvalía

Postby Manchesteral » Fri Sep 01, 2017 11:41 pm

gerryh wrote:Highly unlikely I will be selling at a loss.
The cadastral value is a ridiculously low €7382.01 and the declared purchase price, on the escteturia, is fairly low.
A lump sum was paid in cash as that was the way it was done when we bought the property many years ago.
Cheers
Gerry


That situation still exists Gerry, I have for many years resisted the temptation of buy in Spain but my attitude has softened somewhat recently.
Out of curiosity I recently approached a private vendor with a view to buying a small established Finca close to Las palmas, when I met the owners son, who spoke very good English he informed me that some of the purchase price would need to be in cash, sorry I said no can do, so that practice still exists, if they can get away with it !!

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Re: Plusvalía

Postby PeterSwede » Sat Sep 02, 2017 12:14 am

Paulinmalaga: Try entering the figures without the point (.) ie (29668,87) to see if you get a different sum.

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gerryh
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Re: Plusvalía

Postby gerryh » Sat Sep 02, 2017 7:30 am

That will give a more realistic figure of €3204.04
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Re: Plusvalía

Postby Free at Last » Sat Sep 02, 2017 9:00 am

gerryh wrote:Thanks for the link.
So a plusvalia of €331.07 which isn't much.
It confirms that plusvalia ids based on the catastral value of the land.
Part of the reason for my question is that I was speaking to some friends this morning.
They have recently sold their house and bought a different house, both houses herein Spain.
She said that they had paid, to their solicitor 4% retention, I thought it was 3%?, and a few thousand for plusvalia.
I thought the plusvalia came out of the 3% retention?
Cheers
Gerry


If the seller is resident in Spain and obtains a certificate of fiscal residency from Hacienda, then they will not be subject to the 3% retention against a CGT liabiliy. I did that, but if anyone is selling I would advise them to request the certificate at least 3 weeks before the completion date. We didn't have a lot of time as our sale was completed within 5 weeks, and I went to Hacienda in Vélez just over two weeks before our appointment at the notary's office. The lady on the reception desk gave me a form to complete which I did on the spot and handed it back. She entered the details onto their system and advised me that the certificate would be sent to my home by post from their Málaga office, but if I hadn't received it a couple of days before our completion date, I should come back to see her. I did have to do that as it hadn't arrived, and she printed one off for me. If you have a digital signature you can obtain one online (possibly with a cñ@vePIN as well, but I'm not sure about that).

CGT is payable to the Agencia Tributaria del Estado whereas Plus Valia is payable to the Ayuntamiento. The Plus Valia has to be paid within 30 days of the completion of the sale, otherwise penalties get added on for late payment. The day after completion I took my copy of the escritura into the VÉlez-Málaga OAC office and they printed off a copy of the bill for me (just over €4k in my case). There was the facility to pay by debit card in their offfice, but as the amount was over the transaction limit on my card that wasn't possible, so I had to go to the bank, withdraw the amount in cash and go to another bank which was on the list of those who accept payments for the Ayuntamiento and pay it there.

Vélez-Málaga have a standard form for reclaiming the plus valie paid if the vendor has sold at a loss (last I heard in those circumstances the plus valia stilll has to be paid but can be claimed back). I posted a link about it a few months ago. I didn't sell at a loss so couldn't reclaim mine.

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Re: Plusvalía

Postby Free at Last » Sat Sep 02, 2017 11:20 am

I should have added that if the vendor is non-resident, then the amount of the plus valia will normally be retained by the buyer's lawyer - they don't like to take the risk that a non-resident vendor won't pay up and the buyer would be left with the liability.

Evelyn
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Re: Plusvalía

Postby Evelyn » Sat Sep 02, 2017 2:40 pm

"Sell at a loss". Does that refer to selling under the purchase price or the selling price?

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Paulinmalaga
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Re: Plusvalía

Postby Paulinmalaga » Sat Sep 02, 2017 3:02 pm

I would assume it means that if you bought in say 2006 for €150,OOO and sell it in 2017 for €130,000 you have made a loss of €20,000 on the original purchase price. IE You have Sold at a loss

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Re: Plusvalía

Postby KarenD » Sat Sep 02, 2017 3:56 pm

We are in the process of selling our apartment. The plusvalia should be 6,100 euros but as we are selling at a loss we shouldn't have to pay it. Our lawyer has told us that by law they will retain it and they write to the local authority informing them we have sold at a loss. Once the council has given their authority, the money can be released to us. However, it takes many months apparently.


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