Taxes - Can the Spanish authorities embargo your property?
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Plus-valia -How foreigners in spain can ensure their property
taxes are paid and become familiar with the laws and regulations.
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Get up to speed on spanish laws as they apply to foriegners in spain, and avoid becoming the subject of
another horror story.
In the roaring 60's neither foreigners nor Spaniards were accustomed to pay income taxes, wealth tax did not exist, few municipalities bothered
about plus-valia, and even if you did not pay the contribution urbana (local property rates) nothing happened.
The municipal authorities did not know the properties or the owners in their area, and had no
real intention of enforcing anything.
Today Spain is definitely different. Foreigners, who are not willing to accept this fact, had better leave the country and sell their properties
to avoid getting into trouble. Today the fiscal authorities are registering each transaction, they are wiping out the last pockets of unknown
ownerships, they are passing new laws on taxes, lifting the value assessment on properties, preparing strong new laws on fiscal fraud and
expecting all, Spaniards and foreigners, to abide by the law.
We foreigners should not only abide by the law because we can otherwise be punished. We should also respect the house rules of our hosts, who are
opening their doors to us in a friendly manner.
Most of the foreigners, who do not comply with the laws and regulations in Spain, do it from ignorance. They have not been properly informed yet
in the language they understand, or they have been misinformed by their sales agents or by other persons claiming to know the situation. It is
urgent that all foreigners who intend to buy or who have bought properties in Spain get to know their real situation.
What happens to the foreigners who do not comply with the rules in Spain? Ignorance is no excuse. And the time limits set for payment are getting
shorter and shorter. The fines and surcharges come faster. More and more foreigners are listed in the Boletines Oficiales of the various
provinces. And after having been warned there about their tax debts, the next step from the side of the authorities is to place an embargo on the
property for the debts, and later proceed to a public auction of the property to get their money. And do not expect the tax inspector to write
you a letter to your home country about this. They are just obliged to communicate their steps in the Boletines Oficiales. You do not read it?
You do not live in Spain? You do not speak Spanish? Well that is your problem, not the problem of the tax office, they just want their money.
So what is the solution? Keep yourself well informed, pay the taxes and adjust to the spanish
laws!
There are people who can help you ensure you dont fall foul of the regulations. See below:
Search and Survey SL
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