There is some good news for those who paid deposits on homes in Spain that were never built, The Olive Press reports.
The new rules state that if a deposit was paid into a developer bank account and the property was never built, then the purchaser is entitled to a refund from the bank, along with any interest occurred, even if the developer is no longer trading.
Many would be property owners were left short changed after paying large deposits for off-plan properties which never got built. The financial crisis in 2008 crippled the Spanish property market and construction sector, leaving many developers bankrupt and unable to finish work on development projects. But thanks to the new rules those that lost their deposits can now claim the money back.
And that is not it, there is also some good news regarding plusvalia tax, where by a recent court ruling stated that local tax should only be paid where there has been capital gain.
The plusvalia tax is a capital gains tax applied by local municipal councils in addition to the one by the Autonomous Community. Until recently, these taxes had to be paid even where a loss has been made, the new ruling could mean further refunds owed from the taxman.
A statement by the Spanish Constitutional Tribunal said: “It is in unconstitutional to tax not just a potential economic capacity but specifically, one that is fictitious, virtual or in-existent,” The Olive Press reports.
This statement is very interesting because surely it should then also be applied to the Complimentary Tax which is being imposed on buyers and sellers.
The tax authority has decided that some properties have been sold at too low a price and forcing owners to pay the difference in tax. If a house was sold for less than it was worth, the capital gains tax paid by the seller would have been lower than it should be, along with the ‘stamp duty’ tax paid by the buyer. So the authorities are seeking to claim back the correct tax, calculated on what the property was worth…not what it sold for.
With rulings for lost deposits for off-plan properties that were never built, refunds for interest paid on mortgages in the ‘floor clause’ saga and a change in how plusvalia tax is calculated we can see that positive steps are being taken to ensure that property owners and buyers are getting a much fairer deal.
Tags: Complimentary Tax, Floor Clause, Mortgage refund Spain, Plusvalia, Tax Spain