Tax Demands sent by the Valencia Tax Authority likely Illegal

Tax rebate Valencia

Many property purchasers (and also beneficiaries under Wills or those who have been gifted property) in the Valencia Region received a “supplementary tax demand” for the stamp duty (Impuesto de Transmisiones Patrimoniales) or the inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones).

This tax demand has been issued by the tax authority in the Valencia Region (Conselleria de Hacienda): they have been considering and reviewing the valuations of acquired, inherited or gifted properties, and have arrived at a higher value than the actual price referred to in the Notary deeds. As a consequence of this new valuation, the Tax Authority calculates the amount of tax to be paid, which is higher than the amount previously paid; and they claim for the difference –plus interests- against the new owner.

The referred to valuation adjustments that the Tax Authority has been making were carried-out under the authority conferred by article 57.1.b) of the “Ley General Tributaria” legislation and the Regulation: ORDEN 23/2013, issued by the  Tax Authority. Those legal texts refer to the right of the Administration to review valuations just by referring to the valuations (a certain price per square metre) previously published in official registries for tax purposes, applicable to all the properties in a determined area. 

Supreme Court Ruling

But legal circumstances have recently changed in regard to these issues as a consequence of the Judgment issued on the 28th of October 2015 by the Supreme Court in Valencian Region  – the Tribunal Superior de Justicia de la Comunidad Valenciana (TSJCV)-. This Court has determined that the direct reference to “official prices” is acceptable in certain cases -for example, local taxes known as “IBI” or “Plusvalía”-, but not for other taxes, like stamp duty (Impuesto de Transmisiones Patrimoniales) or inheritance and gift taxes (Impuesto sobre Sucesiones y Donaciones). According to the Supreme Court Judgment, the Laws applicable to these taxes require the valuation adjustments made by the tax authority to be personalised and individualized. Accordingly, any valuation reviews that were carried-out making reference only to the “official prices” were deemed to be against the Law and, therefore, invalid.

This new situation opens the door for appeals by hundreds of property purchasers (or indeed beneficiaries under Wills, or those receiving a gift of property in the Valencia region) who have received notifications of tax demands relating to the these taxes. Therefore, we highly recommend to appeal against those tax demands. If the  Tax Authority refuses a first appeal, we will have the opportunity to appeal again, through an “administrative” Court called the Tribunal Económico-Administrativo and, if necessary, through the mentioned Supreme Court, which is the highest judicial authority in the region and has already clearly determined this issue.

Related Services

3 Lawyers Offering Property Purchase Services in Valencia, Spain

Testimonials for our Property Purchase service
  • P.R. van Tol
    P.R. van Tol

    Francisca did a great job helping us with buying our new property. The price is absolute right. I can fully recommend her!


    Aug 05, 2020
  • Chris Horne
    Chris Horne, Valencia

    Francisca is a highly professional and friendly lawyer based just outside of Valencia city that helped my wife and I purchase our property.


    Her English is excellent and her ability to communicate the Spanish legal requirements for a foreigner to purchase property in a clear and concise way is exceptional.


    I would have no hesitation in approaching her for other legal services myself and would recommend her to anyone.


    Feb 16, 2020
  • Daniela Majstorovic
    Daniela Majstorovic, Valencia

    Inmaculada was very professional, very helpful and approachable , easy to communicate , pleasant,and her English is fluent.


    Dec 05, 2019
  • Natalie
    Natalie , Valencia

    Inma was extremely good at reassuring me with my anxieties regarding buying a property abroad. From the first point of contact I felt she was very trustworthy and this continued all the way to point of signing and beyond.


    I sent her so many emails with all my questions and she answered each one in good time and professionally. She was always on the end of the phone if I needed her and her English and patience was excellent! I would highly recommend this lawyer. We found her independently through Advocate Abroad and will absolutely use her services again!


    Nov 26, 2019
  • Victor Cini
    Victor Cini, Valencia

    Thank you, Ramon was most informative , very clear and offered great advice.


    We hope to be back in touch.


    Oct 23, 2019
  • Steven M
    Steven M, Valencia

    We recently completed a foreign real estate transaction which required us to seek legal counsel here in Spain. Not knowing where to turn we contacted myAdvocate Valencia who put us in touch with our lawyer Inma.


    She offered friendly, professional and flexible legal support during our stressful time, all while speaking perfect English, which further helped the situation. We are so glad to have met Inma and would use or recommend her services in the future. Five-stars!


    Oct 23, 2019
  • Darrell Green
    Darrell Green, UK

    Inma was always available to answer any questions we had or obtained the information required. All of questions were answered promptly and anything we didn’t understand was explained.


    Inma is very friendly and approachable and we felt confident and assured with her professionalism.


    Sep 17, 2019
  • Mark Fairley
    Mark Fairley, Gandia

    Francisca was extremely professional, great communication throughout the purchasing process.


    Phoned or emailed me to keep me updated and worked to a good timescale for completion. Prepared well for the notary and simplified the answers on any questions or issues that occurred.


    I would highly recommend Francisca for anyone from the U.K wishing to purchase property in Spain.


    She takes away any stress or fear that can happen from entering the unknown legal practice in Spain. I would definitely use Francisca again for legal service, on any future issue or purchasing of property.


    She provided good value for service and would be a future person to go to, for any expat in the Spanish community.


    Apr 30, 2019
  • John Seaman
    John Seaman, Valencia

    My lawyer was very supportive, interested in my needs, able to clarify my situation and explain the process and the various options open to me.


    I always felt relieved after each consultation. I will definitely use Inma’s services again


    Mar 21, 2019
  • Thom Koller
    Thom Koller, London

    Francisca provided a perfect service!


    She is professional, dedicated and took care to understand the needs of my situation. Her service offers exceptional value for money and gives complete peace of mind.


    Nov 05, 2018
  • Teresa Valencia (Gandia)
    Teresa Valencia (Gandia)

    I'm very pleased with services I received. Buying a house from abroad is not an easy job and thanks to Francisca everything was clear.


    She's very efficient and I highly recommend her!


    Jul 26, 2018
  • Mr David P Robson
    Mr David P Robson, Valancia

    My lawyer Francisca offered value for money and was very helpful. Will use her again.


    Jul 12, 2018
  • David Stack
    David Stack, Lliria, Spain

    Francisca was extremely helpful. She made the whole process easy to understand. I would definitely recommend her service to friends.


    Jun 21, 2018
  • Rl
    Rl, Alicante

    Felt very comfortable at all times. Nothing was too much. Understood everything mentioned in our meeting. Very reasonable rate, money wise.


    May 24, 2018
  • Larry Karns
    Larry Karns, Valencia

    Inma is a very approachable, open and knowledgeable professional.


    She is available to meet with us on short notice, is attentive to our needs, answers each of our questions fully and provides appropriate legal solutions.


    Inma is bilingual which has simplified communication and avoids misunderstandings. Her fees are definitely value for the money paid, and we will continue to seek her professional services.


    Jan 10, 2018
  • S Watts
    S Watts, UK

    Inmaculada always responded promptly to all communications. Inma fully understood both my requirements and the relevant Spanish legal system. She offered good advice on both general and specific areas of business.


    Inma was clear about the potential costs involved in her services and I felt that these were great value for money. Extremely approachable and professional. I can not thank her enough.


    Jul 24, 2017
  • RL
    RL, Ireland

    My lawyer was responsive, had lots of information, and was able to meet at a location convenient for me.


    Jul 12, 2017
  • Claire Lane
    Claire Lane, UK

    Inma was very helpful, made everything so easy and very patient with all my questions as I am a worrier.


    Couldn’t have asked for better service.


    Nov 08, 2016
  • M Strachan
    M Strachan, London

    My lawyer was very helpful, always happy to assist and was bilingual.


    I was very satisfied with the service and would definitely use the same lawyer again in the future.


    Jul 06, 2015
  • Joscelin Ryan
    Joscelin Ryan, Belgium/UK

    My Lawyer was extremely helpful and professional when having discussions on the telephone. When we met in person she was friendly and I really felt she wanted to help me and do her best for me.


    It has given me confidence after a difficult experience and I would have no hesitation to use her, and Advocate Abroad again. The service overall was exemplary.


    Feb 15, 2015
  • Eric Wagemans
    Eric Wagemans, Netherlands

    Our lawyer provided quick responses to all our questions in clear English, and we were even able to chat using skype!


    Very straightforward in explaining to us what to do, and what not to do, and clear about the consequences of our choices.

    She was very clear on fees. Flexible on hours. Also gave unasked but meaningful advise. A top trustworthy service for a very good price.


    Sep 09, 2014