According to Premier Marbella news sources, a recent high court ruling regarding Plusvalia Tax opened the pathway for an increasing number of Spanish property owners to take legal action against local councils over the forced payment of Plusvalía Tax even when there is a substantial value loss on the sales price.
An increasing number of Spanish property owners are taking legal action against local councils over the forced payment of Plusvalia Tax. Town Halls are continuing to charge property vendors this tax even if the property is being sold at less than the price that was originally paid for it. In many cases this value is a lot lower than the local councils Catastral value.
This irregular situation arises with the value that the Town Hall places on the property using its calculation better known as the Valor Catastral. During the property boom period the price values rose well above this official local council valuation. The tax is calculated by taking as a reference the Catastral value and the length of time that the property has been owned. Clearly in post-crisis years the Plusvalia Tax would appear to work against the Spanish Constitution and is calculated not taking into account whether the property owner has made a profit or substantial loss.
Campaigners against the charges, who are increasing in numbers argue that the charge is a clear violation of article 31 of the Spanish Constitution which outlines taxpayers rights.
Leading Marbella property specialist Romano Keogh commented that an increasing number of people are pursuing with legal actions against local councils. In December 2016, court ruled against Fuengirola Town Hall, after a woman who had purchased a property for 220.000 euros then sold it for 70.000 euros, yet still had to pay 5,000 euros of Plusvalia Tax.
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