Tax Fine Appeal

Received a fine for purchase tax, we can help

When someone purchases a property in Spain, the tax value should always be checked with the authorities, as otherwise the values will be checked by the Tax Office and a Tax Fine sent.

This should be compared with the price being paid on the deeds at the Notary. If a current value for the property is higher with the Tax Authorities it can be a problem. As they have the right (they are very active with this at the present time) to check each purchase transaction. And then send the buyers a claim for the difference in purchase tax on the values.

Why a Tax Fine?

In the Valencia region, purchase tax is 10%. Thus often people can expect a complementary bill to the normal 10% tax that they paid on completion. For the difference between what they actually stated on the deed at the Notary and the tax value. In many cases this can mean an extra bill of thousands. A solicitor acting in the purchase should advise their clients of this risk. Then they should advise accordingly.


Many people feel this is very unfair. However, it is possible to appeal these tax fines based on precedents stating that the system used by the Administration is not legal. Or for inaccuracies in how the demand has been made. Appealing is relatively inexpensive and although it can take around a year in some cases, we have been successful with many of these appeals.

There is only a short time to make an appeal. Therefore if you receive one of these letters or are advised of one, please contact us for a free assessment of whether we can help.