Property purchase tax not paid since 2018

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Squirrel
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Property purchase tax not paid since 2018

Postby Squirrel » Fri Jul 02, 2021 11:23 am

Hi we bought an apartment in Oct 2018 and were told that the property tax demand would follow in a few months. Nothing arrived for over two years. We now have a missed delivery postal notification from the Junta Andalusia from Jan 2021, we have only picked this up last week when able to visit the apartment. I assume this is the tax demand. Is there anything we can do to get this document and pay this tax from the UK or on our next visit to Spain? Thank you

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Enrique
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Re: Property purchase tax not paid since 2018

Postby Enrique » Fri Jul 02, 2021 1:13 pm

Hi Squirrel,
" property tax demand"........... is that the "Impuesto sobre Bienes Inmuebles".........normally referred to as IBI (like Council Tax in UK)
Of course the above tax maybe related to something different............have to await the for further input on your Post.

If so you could get this setup to be paid by DD.

Get yourselves Digital Signatures when next over so you could pay online and also keep up to date on other Tax matters.

Also are you familiar with the Non-Resident Tax Form210 to be paid annually. :?:
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Re: Property purchase tax not paid since 2018

Postby Squirrel » Fri Jul 02, 2021 1:24 pm

Hi thank you for your reply. We pay the annual IBI by direct debit. This is the one-off payment due on a property purchase. Apologies I do not know the correct official term.

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Enrique
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Re: Property purchase tax not paid since 2018

Postby Enrique » Fri Jul 02, 2021 1:33 pm

Hi Squirrel,
Have a Google and see what fits your "Tax"...........

From our Sponsor..............

https://www.andalucia.com/property/arti ... edures.htm

Another Example................

https://www.realista.com/resources/buy/ ... ou-expect/
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Re: Property purchase tax not paid since 2018

Postby Wicksey » Fri Jul 02, 2021 1:58 pm

I can't ever remember getting a separate tax bill after buying a property (we've bought three here). Our gestoria sorted it out at the time we purchased and dealt with it. We paid her a lump sum to cover all expenses and costs of buying, and if we'd overpaid she'd refund us, but her estimate was pretty close to the full bill at the time of buying. Didn't you use a gestoria or someone when you bought?

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Re: Property purchase tax not paid since 2018

Postby Miro » Fri Jul 02, 2021 2:39 pm

If you mean the property transfer tax (El Impuesto sobre Transmisiones Patrimoniales), then this is normally paid at the time of completing the purchase. It must be paid within 30 days, anyway.
I have bought (and sold) several properties over the years in Torremolinos, mostly done at the notario in Torremolinos, who have an in-house gestor department who always handled all the formalities, including settling the ITP bill, before I walked out the door.
As Wicksey asked, did you use a gestor or lawyer to help with the purchase? If so, I would start by contacting them. If not, you could perhaps try asking at the notary on your next visit. But if what you have received is a demand for payment, surely there is some info on how you should pay it? Any additional info might be useful.
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Re: Property purchase tax not paid since 2018

Postby Squirrel » Fri Jul 02, 2021 6:04 pm

Thanks for the replies. We did use a lawyer who told us we would receive a bill in the following months. We attended the notary in Arroyo as that was where the lawyer was based to complete the sale, but this tax was not included in the proceedings. When we went to pick up the sale documents some months after the sale, the lawyer confirmed that we should expect the bill soon as other clients had just received theirs.
I have no idea why we weren’t asked to pay at the time and wish we had. Unfortunately I don’t have the document that was sent I just know that I missed the delivery. I have tried to contact the lawyer, I will continue to do do, thank you for the advice.

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Re: Property purchase tax not paid since 2018

Postby Benal Pirate » Fri Jul 02, 2021 6:51 pm

It's 8 years since my purchase and I recall something similar. We paid tax on a percentage of the purchase priceon completion. Our lawyer advised that we would get a further tax charge within 4/6 months. This was described to me that the authorities have a notional value of each property and that is the amount the tax is calculated on, Sure enough got a note from the lawyer - Good news your property is worth more than you paid and the authorities want another E4,000 ( I don't remember the amount but it was hefty enough). I did ask if the authorities want to buy my place at the price they valued it at or even with a 10% discount. Of course I paid market price and hopefully close to the bottom of the dip. Swings and roundabouts though - my average exchange rate on purchase was E1.18 and within 20 months it just about touched E1.40.

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Re: Property purchase tax not paid since 2018

Postby Squirrel » Sat Jul 03, 2021 8:21 am

Thank you, that does sound very like my situation. I was told to expect a bill of around €4500, so keen to get it sorted. My lawyer also negotiated that the seller would pay part of the tax and is holding this money, which is also quite odd! I would have expected the lawyer to contact me in January but she is not even replying to emails. I will chase her again.

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Re: Property purchase tax not paid since 2018

Postby pepe jose » Sat Jul 03, 2021 8:38 am

thats normal for lawyers in Spain to ignore you once they have had your money. Your long forgotten now.

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Re: Property purchase tax not paid since 2018

Postby Wicksey » Sat Jul 03, 2021 10:37 am

Squirrel wrote: Sat Jul 03, 2021 8:21 am Thank you, that does sound very like my situation. I was told to expect a bill of around €4500, so keen to get it sorted. My lawyer also negotiated that the seller would pay part of the tax and is holding this money, which is also quite odd! I would have expected the lawyer to contact me in January but she is not even replying to emails. I will chase her again.
There is plus valia tax which is sometimes a sticking point over who pays for it, the vendor or purchaser.

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Re: Property purchase tax not paid since 2018

Postby Miro » Sat Jul 03, 2021 11:51 am

It's unusual for the buyer to pay the plus valia (although not unheard of), and it would be unlikely to be that much anyway (although not impossible). Plus valia is payable to the local town hall.
It's even more unusual for the seller to pay the buyer's transfer tax (or any part of it).
If this is a demand for additional transfer tax (which assumes that you did pay the tax on the actual purchase price at the time), then that would suggest the authorities are calculating your property to be worth around €56250 more than you paid (additional transfer tax at 8%, based on your figure of €4500)
But all this is speculation. Surely a tax demand would come from the Agencia Tributaria, not the Junta de Andalucia? Also, if your lawyer was designated as your official representative for the purchase, surely any tax demands would be directed to them?
Perhaps it would be best to get hold of the actual letter first, to determine exactly what it is, before making any further assumptions.
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Re: Property purchase tax not paid since 2018

Postby Free at Last » Sat Jul 03, 2021 12:17 pm

Miro wrote: Sat Jul 03, 2021 11:51 am It's unusual for the buyer to pay the plus valia (although not unheard of), and it would be unlikely to be that much anyway (although not impossible). Plus valia is payable to the local town hall.
It's even more unusual for the seller to pay the buyer's transfer tax (or any part of it).
If this is a demand for additional transfer tax (which assumes that you did pay the tax on the actual purchase price at the time), then that would suggest the authorities are calculating your property to be worth around €56250 more than you paid (additional transfer tax at 8%, based on your figure of €4500)
But all this is speculation. Surely a tax demand would come from the Agencia Tributaria, not the Junta de Andalucia? Also, if your lawyer was designated as your official representative for the purchase, surely any tax demands would be directed to them?
Perhaps it would be best to get hold of the actual letter first, to determine exactly what it is, before making any further assumptions.
I agree, I can't see why a tax demand would come from the Junta de Andalucia. If it was plus valia, it
would come from the Patronato de Recaudación office. €4,500 doesn't seem unusual to me for plus valia, though - when I sold my old house in 2017 I paid just over €4k in plus valia and I'd owned it for 13 years, not such a long time.

It does seem very odd if the property transfer tax wasn't paid at the time the sale was completed - in the case of both the Spanish properties I have bought, a copy of the form proving the transfer tax had been paid was attached to my copy of the escritura issued by the notary's office.

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Re: Property purchase tax not paid since 2018

Postby Squirrel » Sat Jul 03, 2021 12:46 pm

Thank you for the helpful replies. I would love to get hold of the letter, as you suggest it may be something else completely, but I have no idea how I could do that. I have been to the post office and town hall but both unable to help. Any ideas how I can get the letter?

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Re: Property purchase tax not paid since 2018

Postby Beachcomber » Sat Jul 03, 2021 1:55 pm

Get your digital signature then use it to access the web sede electrónica of AEAT, Junta de Andalucía, town hall etc.

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Re: Property purchase tax not paid since 2018

Postby Miro » Sat Jul 03, 2021 2:03 pm

Not really. Presumably by "missed postal delivery notification" you mean a piece of paper from the post office stating that they tried to deliver a letter. If you failed to collect it in the specified time, they would have returned it to the sender. So short of somehow contacting the Junta and asking if they have any communications for you, I don't have any suggestions, sorry.
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Re: Property purchase tax not paid since 2018

Postby Squirrel » Sun Jul 04, 2021 10:07 am

Thanks, I plan to get the digital certificate next time we are able to come over.
The lawyer has been in touch now and it seems she has not been contacted regarding the outstanding tax so likely the missed letter is regarding something else. Hopefully getting the digital certificate will give me the information I need.
All replies much appreciated, thank you.

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Re: Property purchase tax not paid since 2018

Postby Beachcomber » Sun Jul 04, 2021 10:33 am

If you are desperate and live within travelling distance of London you can carry out the verification procedures for your digital certificate at the Spanish consulate.

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Re: Property purchase tax not paid since 2018

Postby Squirrel » Sun Jul 04, 2021 11:38 am

Good to know, thank you

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Re: Property purchase tax not paid since 2018

Postby ManilvaMark » Sun Sep 05, 2021 5:14 am

I think the OP is referring to the tax known as 'Complimentary Tax', where the Hacienda can revalue your property up to 5 years after completion and then charge you the extra purchase tax of 8% on the difference. This happened to us in 2019, and we received a tax demand of 2700€, so we appealed it through a specialist lawyer. It took 2 years and around 500€ in fees, but we won the case and the Hacienda backed down.


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