Plus Valia

[John H]

I’ve spent an hour today going through the accounts for our upcoming sale as provided by our solicitor
To say I was shocked is an understatement at the €4500 plus that Santa Pola council want in Plus Valia tax!!
It’s got to be paid otherwise the property can not be transferred into the buyers name....they therefore have you over a barrel.
Lord knows who works out their cadastral values!!
I reckon I could be signing up to a no win no fee solicitor to try and claim it back as I’m selling at marginal increase over the purchase price 14 years ago.
So, if your contemplating selling don’t do what I did and pop a token €750 into your cost of selling figures for plus valia

You live and learn

Regards all

John


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[Spurs]

Is that allegedly a tax on the capital growth john?

[John H]

It is indeed Spurs, I quote;

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. End of quote.

There is a lot of controversy surrounding it at the moment with the large number of folk selling at a loss or marginal profit.....a handful of people have won court cases to reclaim the tax when they have sold at a loss......Town Halls don’t want to give up a valuable source of income however and are prepared to fight to keep it.....the worry for me if I ask my lawyer to chase it is do legal costs eat a big hole in and make it a waste of time....hence the no win no fee route
I’ll have a chat with her when I see her.
Bloody annoying

Regards all

John


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[Spurs]

Sound like a very dubious tax to me john worth a fight under no win no fee but if you were paying I suspect like you it would cost more than it’s worth

[gunner]

Good Luck with that one.I would be very surprised if any Solicitor  worth there salt would take it on .On a no win no fee basics . The Man problem you have its a made up Tax On the value of the land your house is on Nothing to do with what the house is worth The value and tax is set by the town hall. What they say its worth is Final like it or not. All part of buying and selling a house in Spain.

[John H]

There are a few Spanish Solicitors advertising no win no fee....but after sleeping on it I’ve decided to put it all behind me and close the page, I hope that SP spend it wisely

Regards all

John


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[BeachLife]

love it "made up tax"  - absolutely spot on !!