There is lots of controversy surrounding this so I wanted to give you a quick outline of what to be aware of when it comes to Spanish law on inheritance or buying or selling property in Spain.
Spanish probate
Consideration of this new tax value is also important for inheritance purposes, as the properties will need to be valued according to these values as a minimum.
It will be important to review the values and consider which value to include in the tax returns, to avoid the Spanish tax authority coming back with a tax demand. However, the Notary are likely to warn the parties at the time of the transaction, but make sure your lawyer communicates with you regarding this.
It will be possible to appeal this value by providing evidence that the market value is less, but it will depend on whether the administration will review these values without the need of administrative proceedings in Spain, which in many cases is likely to make the case non cost-effective to pursue.
Property in Spain
These new property tax values are said to have been implemented to avoid tax evasion and people still declaring the value of the property below the market value or the price paid.
I have already seen values which are significantly higher than the market value. This is likely to mean paying a few thousand euros on top of what they would have paid if completion took place on the last day of 2021.
My advice is to be aware and obtain legal advice. A good lawyer should be able to give you information if a value is available so you know as soon as possible how much your liability will be.
If you need help with Spanish law on inheritance and/or you are planning on buying or selling a property in Spain, please do not hesitate to contact me on 07980 596 406. Or get in touch with me via email.
This post was originally published on the Cognitive Law website.