 |
|
 |
|
|
|
The Plus Valía is a community tax that has nothing to do with the increase in the purchase value of a property, but rather is calculated using the change in the price as given in the land registry since the last change of ownership. In law, it was always the case that this tax was paid by the seller, although on the Balearics it is common practice to shift this tax expense onto the buyer. That is no longer possible.
Since the 1st January 2007, the lawmakers have made it expressly clear that the Plus Valía must be paid by the seller, and that any private agreements made to any other effect are unworkable. Since the Plus Valía is ultimately paid upon the sold property, buyers would be well advised to work out the how much it would be and get it straight from the seller.
The reason for this is that if the seller ‘forgets’ to pay the Plus Valía, the council may take the property as compensation, which could lead to an embargo, and at worst, foreclosure.
