Plusvalia tax – What next?

0
The Supreme Court in Madrid
Q.

On May 11 the Spanish Supreme Court ruled that it is illegal for town halls to collect the Plusvalia municipal tax on transfer of properties when a sale is actually made at a loss. Sellers have four years to reclaim the tax paid. We have received a number of queries about the best course of action.

 


A.
The basic rule is to pay the tax now and reclaim it later. However, some municipalities, like Malaga City, have already stopped collecting the tax on new sales. This saves legal expenses for the town hall in later cases. Malaga is even setting up a system for sellers to claim back the tax in a simple process without going to court. But most municipalities have not changed anything. They continue to collect the tax and wait for the claims to come in. You need to check with your own town hall. It may take a long time before the Spanish government actually changes the law to make it conform to the Court decision. Until then each town hall can set its own programme.

Send your questions for David Searl through lawyers Ubeda-Retana & Associates in Fuengirola at [email protected], or call 952 667 090.

LEAVE A COMMENT

Please enter your comment!
Please enter your name here