# spanish tax system



## partnership (25 Sep 2013)

Anyone have any knowledge about the spanish tax system and complementary tax on a property.  Was appealed and bulletin now says other tax management procedures which i don't understand.


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## ALEXA (26 Sep 2013)

Your post does not really make sense to me. Can you clarify a little? I do know there are annual property taxes, IBI - a local tax which covers waste collection, street cleaning etc and Renta Tax paid by non-resident property owners whether or not they rent out their property.  Other taxes such as Capital Gains only relate to a property that has been sold and Capital Aquisition tax to a property that has been inherited. Hope this is helpful.


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## partnership (27 Sep 2013)

When you buy a property you pay a transfer tax based on the value of the property.  The Spanish Government has started coming back to property owners saying that the value was incorrect and looking for extra money - this is called complementary tax if you google it you will see it.  There have been cases in the courts about this but it has not stopped them doing it.  This is what they have done to us and we appealed it.  Due to the fact we do not live there we do not always get our post so I have not been notified as to whether the appeal is successful.  On their tax website there is a section called electronic notifications and on a search it appears our name is listed on a couple of these.  The first one says administrative appeal the las one says other tax management measures.  I am trying to find out what this means though it is probable i will have to go over to the tax office.


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## ALEXA (5 Oct 2013)

Yes I understand what you mean now. It was the norm a while back and when we bought our Spanish property for the price to be under -declared on the escritura in order to save the buyer but mainly the developer so much tax. We insisted on putting the full price and paying the full tax and are glad as when we sold our house with the inflation factor taken into consideration we had no CAT to pay unlike many of my neighbours over there who had under-declared the value and faced high CAT bills when they sold. The main ones that benefit from under-declaring the value are the developers who end up with a huge wad of black money and it is the unfortunate buyer like yourselves who has to face the tax bill later on when the Tax Agency finally get around to doing something about this issue that has been going on under their noses for decades. I would advise you to go over there and get some good advice from your solicitor if he can be trusted. Unfortunately they too were often on the side of the developer and although they were assigned to the buyer to represent him/her at the Notary, they were not always on the buyer's side.


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