As we all know, taxes are one of the many mechanisms that the State has to finance itself. Many times these can be high and other times they can be bonified.
In the case of the purchase of a property, there are a series of taxes that you should be aware of in order to be able to carry out the purchase.
What taxes do I have to pay when buying a property?
The taxes to be paid on the purchase of a property can vary depending on the situation.
The most common is the Transfer Tax which is paid whenever the property purchased is a re-sale property. The TPO is an Indirect Tax ceded to the Autonomous Communities, so each one can establish a different tax rate. For example, in the Region of Murcia, the tax rate is 8%, in the Community of Valencia it is 10% and in the Community of Madrid it is 6%. In other cases, such as Extremadura, it depends on the value of the property.
Given the autonomy of will, individuals can establish the prices at which they want to transfer the property, as well as negotiate the price with the buyer. So, what happens if I acquire a property for a price that I have previously negotiated with the seller and the Public Administration considers that this price is not in accordance with its value? The Public Administration will notify the interested party of a Provisional Settlement Proposal. The purpose of this resolution is to make the administrative file available to the interested party. In view of this proposal, the interested party will have 10 working days to present any allegations deemed appropriate and provide any documents considered pertinent, to indicate that the Administration is mistaken.
The procedure continues by means of the Termination of Proceedings Agreement with provisional settlement in the event that the allegations are not upheld. In this resolution, the administration may penalise the interested party with interest for late payment.
It should be borne in mind that the Public Administration often does not resolve the allegations and issues this Agreement. It is at this moment when the Appeal for Reposition must be presented within a maximum period of ONE MONTH from the day after the notification was received or the Economic-Administrative Claim before the Regional Economic-Administrative Court.
The documents that serve as the basis for the claims must be attached to each letter. In the event that the claims are rejected, the next step would be to go to court by means of a Contentious-Administrative Appeal.
In summary, tax complementaries play a key role in state financing and can vary depending on the situation, if we are talking about a re-sale property. In the context of home acquisition, the process for can be complex and will largely depend on the particular situation of each case. At Imont Legal & Lucas-Montesinos we have expert professionals ready to give advice and accompany you in the necessary procedures for the management of the complementary taxes when buying a property.