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
under-declaring alive and well in 2018?
Re: under-declaring alive and well in 2018?
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
Re: under-declaring alive and well in 2018?
Yup. I don't know whether I'm more surprised by an agent so openly requesting this or the fact that it still happens.
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- Andalucia Guru
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Re: under-declaring alive and well in 2018?
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).
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).
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- Resident
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Re: under-declaring alive and well in 2018?
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
Re: under-declaring alive and well in 2018?
"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.
Where does one get the said municipal multiplier? this is an interesting concept.
Thanks.
- Enrique
- Andalucia Guru
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Re: under-declaring alive and well in 2018?
Hi,
Beachcomber may have a later link...............
Scroll down to bottom of form.........
http://www.juntadeandalucia.es/boja/2015/104/10
Beachcomber may have a later link...............
Scroll down to bottom of form.........
http://www.juntadeandalucia.es/boja/2015/104/10
All my best learning experiences start with a problem I need to solve.
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- Andalucia Guru
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Re: under-declaring alive and well in 2018?
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.
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.
Re: under-declaring alive and well in 2018?
Thank you both for info...
Re: under-declaring alive and well in 2018?
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?.
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- Andalucia Guru
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- Joined: Tue Jun 15, 2004 11:11 pm
- Location: Guadalhorce Valley
Re: under-declaring alive and well in 2018?
You take the total of both added together.
Re: under-declaring alive and well in 2018?
Thanks Beach.
Re: under-declaring alive and well in 2018?
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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