I.B.I. TAXES

Duncan you do not name the municipality,

if you tell us then maybe someone can help and even give you specific info,

John

Hi John, we live in Benamocarra 29719. We are seeing our accountant on Monday so will also see what comments he may say regarding this matter.

Good luck on Monday Duncan.

Would you please let us know how you get on ?

Thanks

John

Hello Duncan

This certainly sounds like a mistake and a clerical error no matter which municipality it is.

You’re doing the right thing going to an accountant.

Thanks for your input, one can only hope you are correct. I will let you know the outcome of our visit to our Spanish accountant.

Have been to see the Tax advisor/accountant.
Well it turns out these 2 bills are nothing to do with I.B.I but capitol gains tax on a garage we bought 4 years ago. The previous owner acquired it when his dad died 27 years ago, but only registered it because he had to, prior selling it to us in 2013. Normally all capitol gains taxes fall onto the seller because that is the law. However deep down in our Spanish written deeds there is a clause that states in this case the buyer is responsible for any outstanding taxes including capitol gains tax. Unfortunately the same legal person who was initially acting on our behalf was also acting for the buyer. We live and learn, certainly will not fall into this trap again.

Duncan,  thanks for reporting back. 

As you say, unless there is a mention to the contrary in the contraventa (purchase/sales)contract, it is the seller who is responsible. 

Unfortunately your experience lends to support my long held opinion,  that one only knows if their lawyer is/was competent if something, which you maybe discover later, (even four years later)  went wrong.   

Possible until your latest unpleasant surprise you may have been recommended your lawyer  !

Can assure you we had already ditched them a few years ago, when I was concerned about the amount of tax I was paying. By going to another company I saved thousands, to date I am still awaiting a refund from the tax office.

Duncan.   When my gestor got my tax declaration wrong,  after a year of trying to get a refund from hacienda she transferred 3,000 euros from her account to mine.  If I ever get a refund from hacienda she said I can repay her

Johncar

Why does hacienda not refund genuine claims promptly or at all?.

Following on from my previous message, the plot thickens. I now have a copy of the contract which was signed by us and the seller, which states clearly that the capitol gains tax will be paid by the vendor. However this was switched to be by the purchaser on the deeds, neither myself or our advisor at the time recollects this being discussed especially when the seller acquired the property 27 years earlier.
I will be interested to hear any comments but probably will have to accept that the deeds will over ride  any signed contract

The capital gains tax is the responsibly of the seller, however, the plus valor, whilst the responsibility of the seller can be paid by the buyer with their agreement.     It would appear that is the tax you mean rather than th CGT

i just found this which should explain what i posted at No. 13

https://www.spanishpropertyinsight.com/ … -property/

Extract:    .

Capital Gains Tax (or CGT for short) and   Plusvalía Tax.

However it can be agreed in practice, and frequently is, that a buyer pays for Plusvalía tax.

Confusingly you may find that some articles refer to both taxes as if they were one and the same; they muddle plusvalía municipal (town hall tax) with plusvalía fiscal (which is Capital Gains Tax in English).

Needless to say this is a glaring mistake as they are two distinct taxes; the former is paid to the town hall where the property being sold is located and the latter to the state (whether as Personal Income Tax or Non-Resident Income Tax dependent on the taxpayer’s residency status).

Thanks for your update, confusing it can be. Out of interest the bills are from the Town Hall and state the following in Spanish:
IMPUESTO SOBRE EL INCREMENTO DEL VALOR DE LOS TERRENOS DE NATURALEZA URBANA
I assume this is therefor the plus-valia municipal tax.

The conflicting statements refering to this problem are below. as I said before I presume in-law the deeds would over ride the contract.


This is an excerpt from the deeds.

Todos los gastos e impuestos que se derivan del presente instrumento, seran de cuenta de la parte compradora, incluido el impuesto municipal de plus-valia

All expenses and taxes arising from this instrument shall be the
account of the purchaser, including the plus-valia municipal tax


This is an excerpt from the signed contract.

The vendor will pay the land value tax as well as any other costs derived previous to the signing of the title deeds.
The purchaser will pay the taxes from acquiring the property, Notary fees and registration costs will be paid according to law.

The vendor declares that he has paid all taxes on the property. Nevertheless, if the vendor incurs any debts from the property to be sold, he is obliged to pay all the amounts.

From a purely logical view,. I would assume, in the case of conflict,  the last signed document is over riding.  (As say a last Will and Testament).

Also, I could not imagine how Capital Gains Tax, a personal tax , could become the responsibility of the person buying the property.

Duncan,   I assume you are now clear about your position