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Stato
11-11-2010, 08:45 PM
I have just recieved a rather worrying letter from Junta de Andalucia, and I would really apreciate some help / advice.

We have recently sold and purchased a new property in southern spain (Manilva). Both myself and my wife are non-residents, but know the area and the systems fairly well (or so we thought!) During the purchase of our new property, we duly paid the spainish equivelent of stamp duty on the purchase price (7%). However, we have now recieved a letter from the Junta de Andalucia, stating that they believe that we purchased the property at a particulaly lower than market rate. With this in kind, they have re-calculated our "stamp duty" liability in accordance with a formula that they use to value properties, and are now demanding the (7%) "stampp duty" on the difference between the purchase price and their valuaion. Furthermore, they require a response within 10 days!!! (what if we weren't there to recieve the letter.....???)

From speaking to our solicitors, it appears that (of recent) this has been common practice. However, I really struggle to believe the values that they are using. These are in the region of:

Purchase Price: 145,000 euro
Junta Valuation: 274,000 euro

Hence, the additional sum they are asking for is rather large!

Please can you advise in respect of what my leagl possition is with this, and the best method on which to challenge the letter / demand from the Junta de Andalucia?

Many thanks in advance

Unregistered
11-12-2010, 10:32 PM
Your problem does seem to be a common occurance!

What is the valor catastral of your new property? I believe Hacienda are simply using a factor multiplied by the valor catastral to determine market value. However with the dire situation of state finances I don't belive an appeal would be successful. You may be able to get the calculation that has been used.

Your silver lining is that on sale use the higher value to reduce capital gains as you are within your right to claim that you bought the property for 274,000 Euros

lawbird
11-15-2010, 11:51 AM
Dear Sir,

We have heard of several buyers in your same situation and in this regard I refer you to the following article written by Antonio Flores on this issue:

http://belegal.com/blog-by-antonio-flores/careful-with-the-tax-office-when-selling-or-buying-at-a-discounted-price/

We believe this whole situation is unjust to bona fide purchasers and we certainly recommend you to appeal the decision as far as you can. The truth is that these calculators should not be a substitute of an actual valuation of the property in situ, and with the current economic downturn it is in our opinion arguable that these properties have increased their value in the amounts the Administration claims them to have done.

For those who are considering buying a property at an undervalue, our Conveyancing Team always ensures that the sale price does not differ considerably from the cadastral value. In cases where it does, we make our clients aware of the potential problems this could bring and try to allocate the risk to one of the parties during the negotiations (pre-completion).

If you have already purchased, an appeal will not only grant you with more time until payment is due, but will also provide you with an opportunity to defend the merits of your case (which in our opinion are very respectable).

If you are interested in having a Lawyer review the letter you have been sent, and prepare an appeal, do not hesitate to contact us using the following online form:

http://www.lawbird.com/services/contact

Kind regards,

PS: Please note that if you (or your concierge) have signed any papers from the postman at the time of delivery of this notification, you should act as soon as possible.

Unregistered
11-16-2010, 09:04 PM
Thank you for both of the (timley) responses. From considering the intitial rateable value, I think you are both right. This was over-inflated from the intial day of purchase, and must be the princeple of our appeal.

I will contact you shortly in respect of this.

Regards

WifeOfStato
11-24-2010, 11:18 AM
I am having difficulty emailing you via your website. Please could someone from Lawbird contact me at pipragdale@hotmail.com. Thanks

lawbird
11-24-2010, 03:23 PM
We will contact you now to the email provided.

Kind regards,