Property conveyancing in the Axarquia
Property conveyancing in the Axarquia is very common with many foreign people buying and selling properties in Alcaucin, Vinuela, Arenas and Torre de Mar
In the last few years it has become quite usual that the sale of properties generates a loss instead of a profit as prices have dropped considerably. As a result many tax payers, fiscal residents and non residents, have refused to pay the Plusvalia and have even brought lawsuits against the Town Halls, who are in charge of collecting this Municipal Capital Gains Tax
The first judgment on this issue has been decreed by a court of San Sebastian (Spain), which casts doubts on the constitutionality of this tax when the property sale price is lower than the purchase price, and it results in losses.
Likewise, the High Court of Justice in the Autonomous Community of Valencia has also questioned the method of calculating this tax, since it only takes into account the cadastral value of the property and the number of years elapsed between the purchase and sale, leaving aside the actual market evolution.
The publication of these judgments does not annul the aforementioned tax when losses are generated as a result of a property sale, but it represents a beginning which may result in the exemption from the payment when losses concur.
The information provided in this article is not intended to be legal advice, but merely conveys general information related to legal issues.
Author: Rosana Tejada
Biographical Info: Rosana Tejada Crespo is a tax advisor holding a Master’s Degree in International Taxation. She specialises in companies and freelancers, tax regulations concerning foreign employees (Beckham Law), non-resident tax, inheritance tax and Spanish income tax. She is one of the founders of Tejada Solicitors, which comprises a group of English speaking solicitors, economists and architects.