The Spanish Constitutional Court knocked down the plusvalia tax last friday as it is a tax to be paid by the property vendors even in those cases in which the sold their properties at a loss, very common practice during the Spanish property crisis.
Now where are going to explain how to reclaim:
Have you sold your property at a loss?
The first step will be to write down a letter to the town hall asking for the refund of the overpaid plusvalía tax, informing how much was paid at the time the sale took place. Then we would have started the administrative claim.
Then the Town Hall must answer and give a timescale to interpose our appeal to their decision ( recurso de reposición), and an appeal (reclamación económico administrativa) to the local Administrative Economic Court (Tribunal Económico Administrativo).
This steps would finish the so called administrative route.
Then, in case the appeal has not been satisfactory for our economic interest, we should interpose our reclaim to the Spanish Courts
As the ruling from the Spanish Constitutional Court voids a Regional Law ruling the plusvalia tax ( in particular the Basque Country one), what are my chances to get back the plusvalía that I paid if I was affected in a different Spanish Region?
At, Fuster & Associates, we consider that as the affected regional plusvalia tax is a copy of the national law, it would affect the national law as well.
On the other hand, Hacienda considers the ruling is only applicable to the taxpayers of the Basque Country.
What difference does it make then, as many taxpayers have already had favourable rulings forcing the Town Halls to refund the plusvalía tax they had paid?
What does the ruling change?
We consider it means an extremely important hit for those citizens who have not yet reclaimed and sold their properties even at a loss.
Why then Town Halls charge this tax even in the event of not having a profit in the sale of a property?
The Local Tax Law (article 104) established to tax the increase in value of the properties once they are sold. However the plusvalia tax works against the Spanish Constitution, as taxes in an objective way the tax to pay when selling a property and it is calculated taking as a reference the cadastral value and the length of time the property has been owned. Therefore it is calculated not taking into consideration whether the property owner has made a profit, not allowing the property owner any actions against the calculation.
Could I reclaim if I paid the plusvalía tax when gave my property back to the bank? ( Dación de pago)?
At, Fuster & Associates, we consider that if you gave your property to the bank at a loss you are eligible to claim the overpaid plusvalía tax.