Tax Demands sent by the Valencia Tax Authority likely Illegal

Tax rebate Valencia: Learn about Tax authority in Valencia -Spain- demanding taxes in excess, possibly making your case for appealing.

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.

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33 Lawyers Offering Inheritance Services in Spain

Testimonials for our Inheritance service
  • Gail Maher
    Gail Maher, Fuengirola

    Hi, I would like to thank Alvaro very much for all his expertise. We had a very long journey from dealing with the inheritance will for my mother's apartment in Torrenueva to dealing with sale of the apartment.


    He was brilliant in every aspect. Nothing too much trouble. Very professional and would definitely recommend him to anyone in the future.


    So a big thank you and wishing you to continue delivering an excellent service. Regards Gail Maher


    Oct 21, 2020
  • Johanna Count
    Johanna Count, Benidorm

    Consuelo explained and took care of everything. She is easy to get in touch with and a pleasure to deal with.


    Having to deal with Spanish probate laws and procedures was overwhelming but Consuelo made it so straight forward.


    Oct 07, 2020
  • Michael Armstrong
    Michael Armstrong, La Manga del Mar Menor

    Consuelo has the highest praise and gratitude from this family by somehow reclaiming inheritance tax from Madrid. Previous solicitors left a mess,partial/incorrect and missing documents were received very late.


    Despite obstacles such as denial from tax office and virus Consuelo promptly, courteously and professionally simply got on with the job and succeeded against all odds. We cannot thank her enough!


    Jul 27, 2020
  • Carole Nicholls
    Carole Nicholls, N/A

    Beatriz has been wonderful to deal with she is very approachable and always professional and I would certainly recommend her to friends.


    When my circumstances changed Beatriz was extremely helpful and explained fully the action needed and the process required. I have communicated via email to her and she has always responded promptly and when I have visited her office she has always been very welcoming.


    Her english is excellent and she has always let me know the costs upfront of any work she has done.


    Jul 13, 2020
  • Abbie Orsini
    Abbie Orsini, England

    Rosa responded efficiently I was extremely happy and satisfied with this !


    She explained everything I needed to know and more to help me understand. At the beginning I found the process daunting Rosa took this feeling way and helped me feel at ease.


    Paying was straight forward and I was well informed with fees etc. Rosa took a very professional approach and I felt comfortable approaching her about any issues I had.


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    Jun 18, 2020
  • Jonathan Mackay
    Jonathan Mackay, Jaca

    Francisco was extremely professional and answered our many questions promptly and clearly, both by phone and email. We feel very lucky to have had Francisco handle our Spanish Fiscal declaration.


    The service was perfect, and we are very happy with the whole process.


    Mar 12, 2020
  • Gail Maher
    Gail Maher, Torrenueva

    Alvaro is brilliant.


    He comes across very professional and friendly,nothing too much trouble.


    As I was unable to go to Spain initially all communication was via phone and was put at ease straight away as he understood exactly what was required to deal with my case, and all went exceptionally well. I was able to meet Alvaro in August to pass over documents required and made me very welcome.


    I have been so pleased with everything I have now engaged him on a further instruction on our property in Torrenueva..


    Dec 11, 2019
  • Andrew Hales
    Andrew Hales, Fuengirola

    We dealt with Angela, and had a superb service - she was efficient, clear, timely and exceptionally helpful. We would recommend this respectable Solicitor who has excellent English.


    Trustworthiness is so important, and step by step help was very much appreciated. Thank you Angela of myAdvocate Fuengirola.


    Oct 23, 2019
  • Isabel Albert
    Isabel Albert, Valencia

    Inmaculada has always responded to all my queries and explained and provided excellent solutions. She is very approachable, diligent and professional.


    Sep 17, 2019
  • Irene Hyde Christie
    Irene Hyde Christie, Coin

    I am very pleased with the service provided by Francisco. He has been most helpful and responded very quickly to all my emails.


    Jul 26, 2019
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    Franco Trio, United Kingdom

    Rosa always responded promptly to any email I sent.


    She kept me informed and provided alternatives and 3rd party services (translation).


    Thank you Rosa for your assistance, perseverance and honesty in helping my mum and I. We will definitely recommend you.


    Apr 10, 2019
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    Marcus Bond, Fuengirola

    Proactive, great communication, thoroughly recommend.


    Feb 14, 2019
  • Kevin
    Kevin, Algarobba Costa

    Clear information throughout, well explained and always had my confidence.


    Jan 08, 2019
  • Michael Bates
    Michael Bates, UK

    Francisco was very easy to deal with. Very professional. Would not hesitate to recommend him to friends.


    Jul 27, 2018
  • Jason Yorke
    Jason Yorke, United Kingdom

    Beatriz was really helpful and always kept me informed at all stages. She is very professional and a pleasure to deal with.


    Jul 19, 2018
  • Sarah Finnagan
    Sarah Finnagan, England

    Francisco was fantastic and helped me through every single step and helping understanding everything.


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    Very easy to get hold of and very quick at responding would definitely go back to him - thankyou so much Francisco for everything.


    Sep 21, 2017
  • Michael Tenerife
    Michael Tenerife, UK

    Rosa excelled in all of the criteria listed for evaluation.


    Extremely responsive, understanding, professional, and offered great value for money. Rosa explained the situation clearly and provided the clearest solution every time.


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    Aug 07, 2017
  • LM
    LM, Ibiza

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    I am very satisfied and I definitely would use the same lawyer again in the future.


    Mar 10, 2017
  • Mike B
    Mike B, South of England

    Beatriz responded immediately to my first approach and always quickly thereafter, understood and knew the law/background, carried out local activities in addition on my behalf, good value for money, helped us through an unfamiliar situation very well in a personable and pleasant way.


    People had warned me the key to this was finding a trustworthy lawyer in Spain so I approached a couple of lawyers in Nerja and judged on their first response, Beatriz obviously passed that test.


    Dec 15, 2016
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    Diana Rawstron, London

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    I definitely use the same lawyer again in the future.


    Nov 03, 2016
  • Mrs. Irene C Price
    Mrs. Irene C Price, Acton Trussell

    It was a pleasure to deal with Francisco. He spoke excellent English. He was professional and courteous at all times, and responded to any queries I had by return, taking time to explain complicated legal procedure in a manner I could understand.


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    Oct 12, 2016