under-declaring alive and well in 2018?

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D1ckyS
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under-declaring alive and well in 2018?

Postby D1ckyS » Thu Feb 01, 2018 12:26 pm

I recently found a property online that was being advertised by a mainstream agent for sale at a reduced price to cash buyers.
My excitement was dampened when, during an email exchange to arrange a viewing, I was told that all bidders needed to accept the vendor's demand that any purchaser agree that one third of the value was for contents!
I may be wet behind the ears but, whilst I can understand a quiet off-the-record conversation about a small amount being agreed for fixtures and fittings, to brazenly put in writing that a potential buyer has to agree to such terms before viewing seems bizarre.
Am I being naive by walking away? I know it used to be the norm but I thought the Hacienda had cracked down on this. Maybe this is this still accepted practice in more rural areas?
Richard

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costakid
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Re: under-declaring alive and well in 2018?

Postby costakid » Thu Feb 01, 2018 1:02 pm

All I know is that once the paperwork is presented you will be the one who picks up the fine if it is drastically lower than it should be

D1ckyS
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Re: under-declaring alive and well in 2018?

Postby D1ckyS » Thu Feb 01, 2018 1:05 pm

Yup. I don't know whether I'm more surprised by an agent so openly requesting this or the fact that it still happens.

Beachcomber
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Re: under-declaring alive and well in 2018?

Postby Beachcomber » Thu Feb 01, 2018 2:01 pm

If you really want to buy this property ensure that the price declared is equal to or more than its fiscal value which is obtained by multiplying the valor catastral of the property by the municipal multiplier. Failure to do this will result in a demand from AEAT for the difference in the tax and a fine for underdeclaration.

There is a facility to declare the fixtures and fittings separately in the escritura which is subject to a lower tax of 4% but I am not sure if this is subject to a correlation between the two values (ie. the value of the fixture and fittings cannot be more than a certain percentage of the purchase price).

Paddy Pumpkin
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Re: under-declaring alive and well in 2018?

Postby Paddy Pumpkin » Thu Feb 01, 2018 4:26 pm

Also keep in mind that should you come to sell it in the future any capital gains tax will be based on the difference between the price you bought it at (declared) and the price you sell it at

wollie
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Re: under-declaring alive and well in 2018?

Postby wollie » Fri Feb 02, 2018 9:15 am

"obtained by multiplying the valor catastral of the property by the municipal multiplier"

Where does one get the said municipal multiplier? this is an interesting concept.

Thanks.

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Enrique
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Re: under-declaring alive and well in 2018?

Postby Enrique » Fri Feb 02, 2018 9:46 am

Hi,
Beachcomber may have a later link............... :idea:

Scroll down to bottom of form.........

http://www.juntadeandalucia.es/boja/2015/104/10
UNIX is basically a simple operating system, but you have to be a genius to understand the simplicity.

Beachcomber
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Re: under-declaring alive and well in 2018?

Postby Beachcomber » Fri Feb 02, 2018 4:40 pm

This is the latest one I have:

http://juntadeandalucia.es/boja/2016/14 ... 096004.pdf

They did not publish a list last year but there is an online calculator here:

http://www.juntadeandalucia.es/agenciat ... Urbana.htm

Enter the year, your province and municipality and click 'continuar'

On the next page enter the valor catastral and click 'aceptar'.

The 'Resultado' will give you the minimum amount that can be entered in the escritura.

If you want to know what the actual multiplier is just enter '1' as the valor catastral and the amount that appears in 'Resultado' will be the municipal multiplier. Remember, this is a multiplier not a percentage.

wollie
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Re: under-declaring alive and well in 2018?

Postby wollie » Fri Feb 02, 2018 7:56 pm

Thank you both for info...

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marios
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Re: under-declaring alive and well in 2018?

Postby marios » Mon Feb 12, 2018 3:06 pm

Can I ask on the valor castral what do I put in (as we built our own house on land we bought)do I put in the VC Suelo or VC Construction?.

Beachcomber
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Re: under-declaring alive and well in 2018?

Postby Beachcomber » Mon Feb 12, 2018 5:23 pm

You take the total of both added together.

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marios
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Re: under-declaring alive and well in 2018?

Postby marios » Mon Feb 12, 2018 5:59 pm

Thanks Beach.

Gasman
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Re: under-declaring alive and well in 2018?

Postby Gasman » Tue Feb 13, 2018 6:24 pm

Our property has in the last couple of years been reassessed so that there is now the constructed area, including the swimming pool and terraces/driveway, and separately assessed what used to also be part of the Urbanisable plot, now designated as rural and at a very minimal cadastral value, basically the veg plots and orchard. So if you work out the cadastral value it is now almost half of what it was rated at when we bought it .... so if we should sell it, how would the plus valia and approved selling price be estimated? There has been no actual change to the plot, the house, size, urbanisation ... just the cadastral valuation.


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