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Does Plus Valia Tax have to be paid in addition to Inheritance tax when, as a result of a will, it is transferred and not sold ?
I have just been asked by my lawyer to pay E4500 on top of E500 already paid for Plus Valia Tax. I have no idea how it is calculated - can this be checked
My Husband died in 2006 and left his 50% of the property in Puerto Banus equally to our 3 children. The value at the time of death was approx E300,000 on an original purchase price of approx E100,000.
Regards Jacky
Dear Madam,
Yes it's paid on top as well. It's a local tax.
As your husband died in 2006 the tax still has to be paid.
You've been asked to pay for 5,000€ for plus valĂ*a tax on a 300k property?
Have I understood correctly?
Or did you mean to write that the plusvalĂ*a tax had been only 500€?
Thanks for your prompt response.
Yes I had paid E500 to my lawyer in March this year but at that time he had not mentioned that further payment would be required. He has now asked for a further E4500 ie E5000 in all. He has not given me any official evidence of this request and although I have no reason to believe he is not acting in my best interests, I still have no explanation from him.
I do understand from you that it is a tax I have to pay in the circumstances mentioned.
However, a second opinion is felt necessary and I would like your view as to whether a total of E5000 sounds reasonable given the values of the property mentioned in my last message.
Jacky
Dear Jacky,
You're welcome.
A lawyer normally charges 5,000€ plus VAT for an inheritance procedure, to this you must add the paying the Spanish Inheritance tax and plus valĂ*a tax (if applicable).
I doubt you are being charged 5,000€ for plus valĂ*a tax in Marbella on 50% of a 300k property bought in 2006.
It's just impossible. More like 300€.
I'm quite sure that what's happened is that you have not been provided with a full breakdown of fees, expenses and taxes on this procedure.
Request a full breakdown and you will avoid further misunderstandments. Besides, it's your right to request it.
Yours faithfully,
Thank you so much for your advice. It has been very helpful to know roughly what the costs should be. I will get back to my lawyer and ask for a breakdown of my tax liabilities and costs and hope it clarifies my inheritance taxes position.
I will let you know if the issue is resolved.
Kind Regards
Jacky
You're welcome Jacky.
It's your right to request a full breakdown of expenses and fees.
Yours faithfully,
Hello
My parents, who are not resident, are selling their flat and our solicitor is estimating Plusvalia at 4.325E based on:
Catastral value 51.497E
x 8 years
x 3,5% coefficient
x 30%
= 4.325E
The flat is in a large block and is approx 90m and valued at 85.000E
This plusvalia seems very high to me - the Town Hall have a very high valuation of the land, especially when it is divided between all the flats on it.
Our lawyer has advised us not to challenge the catastral value which was set in 2004 when things were very different. Is this wise or can we insist on a new valuation? The Ayuntamiento is Torrevieja in Alicante.
Many thanks for your help
Stephen