Having bought a property on the Costa Del Sol within the past 12 months and having paid tax on the purchase price I did not expect to receive a large demand for even more tax on the assumed price of the property. Essentially I paid a reasonable price for the property - the owner wanted out of Spain and had been trying to sell for quite some time. However the tax office have created their own value using some complicated formula and since this “value” is more than I actually paid they have demanded tax on the difference. Is this legal ? No cash or black money exchanged hands, nothing sinister, all was as declared on the Escritura. With the ever reducing price of property on the Costa Del Sol I expect more and more people will be ripped off for the same reason.
Anyone come across this before ?
I had my solicitor attempt to defend the calculation and some of their assumptions but everything fell on deaf ears.
How can tax be demanded on an amount that was not paid ?

well you off two court then with all accounts and payments . that how done in the UK and here in Spain . My boss later father say you alwas pay the tax man , but how much you get away with is up two you and your account . ha there taxing a young box down the raod from me this year .Age around 7 he has two pay like 1 euro this year , hope his pocket money donent go up .

jurdy

I’m just starting the appeal with my lawyer in spain for exactly the same thing. I’ve just been hit for another 8000 euros tax as a result of a re-assessment. I only got the place in September 2008 and bought it from a couple who were desperate to sell. They were as good as bankrupt if they didn’t sell. I was lucky and found that vendor that got in too deep, purely a fluke. I feel I’ve now been targetted and my suspicions are that I have a very, very pro-active lawyer !!!! The down turn has affected the lawyers as much as anybody and it seems to be one thing after another in an effort for them to keep busy. I’ve parted with 1000 euros just to fight the case and I’m not holding my breath. Do the authorities not understand that a holiday home which is occupied generates and provides for the economy in Spain by way of car hire, fuel for the car, money for the toll roads, cash in the bars and restaurants, shopping at the supermarkets etc etc etc etc !!!! I’ve only just paid a ridiculous Income Tax and I don’t even live or work in Spain??? Makes me laugh, not a lot!!!!