After buying your Spanish dream home, do you unexpectedly receive a letter titled 'Propuesta de Valoraci\u00f3n y de Liquidaci\u00f3n Provisional'<\/i>? Then you have to deal with la complementaria<\/i>. This is a formal requirement by the Spanish tax authorities to pay additional transfer tax because the declared purchase value is lower than the tax reference value.<\/b><\/p>\n
In this article, we explain how this procedure works, the impact of the new Valor de Referencia<\/i><\/a> (since 2022) and how you legally seal this.<\/p>\n La complementaria is a supplementary tax assessment issued by the Spanish tax authorities (Hacienda<\/i>) imposed if they ruled that you were underpaid transfer tax (ITP<\/i>) paid at the time of purchase.<\/b><\/p>\n The law states that the tax authorities may check the tax value of a property. If the actual purchase price in the notarial deed is lower than the value set by the government (the Valor de Referencia<\/i> or tax value)? Then the tax is calculated on that higher government value<\/b>. The difference in tax, often plus interest, is recovered through this assessment. This is similar to a deficit assessment in Belgium<\/a>, but based on automated data.<\/p>\n Expert Quote:<\/b> \"Many buyers think the deal price is automatically the taxable base. In Spain, the taxable base is the higher of the two: the market price or the reference value. Those who ignore this are guaranteed to get mail from the taxman.\" - Confianz Team.<\/i><\/p>\n<\/blockquote>\n The reason lies in the difference between commercial reality and administrative valuation. Since the property crisis, 'bargains' can still be found in regions like Costa Blanca and Costa del Sol. For example, you buy a resale<\/i> home at a competitive price.<\/p>\n As a result, the Spanish government is losing revenue from the ITP (Impuesto de Transmisiones Patrimoniales)<\/b>. To compensate for this, since 1 January 2022 the tax authorities have been applying a stricter system: the Valor de Referencia<\/b>.<\/p>\n Since 2022, the tax value is no longer subjectively estimated, but determined by the Spanish Land Registry (Catastro<\/i>) based on actual sales figures in the area.<\/p>\n The rule is simple:<\/b> You pay tax on the Valor de Referencia<\/i>, unless the purchase price is higher.<\/p>\n<\/li>\n The risk:<\/b> Buying a property under<\/i> this reference value? Then you will pay tax on a value you did not pay. If you do not do this spontaneously, it follows la complementaria<\/i>.<\/p>\n<\/li>\n<\/ul>\n To make the impact concrete, we outline a common scenario on the Costa Blanca.<\/p>\n Case study: Apartment in Calpe<\/b><\/p>\n Actual purchase price:<\/b> \u20ac120,000 (A good deal).<\/p>\n<\/li>\n Fiscal Reference Value:<\/b> \u20ac220,000 (Determined by the Land Registry).<\/p>\n<\/li>\n Difference:<\/b> \u20ac 100.000.<\/p>\n<\/li>\n<\/ul>\n The taxman's calculation:<\/b> The registration tax (ITP) in the Valencia region is 10%.<\/p>\n You paid 10% at \u20ac120,000 = \u20ac 12.000<\/b>.<\/p>\n<\/li>\n Tax authorities claim 10% at \u20ac220,000 = \u20ac 22.000<\/b>.<\/p>\n<\/li>\n<\/ul>\n The result:<\/b> You will receive a complementaria<\/i> from \u20ac 10.000<\/b> (the difference), plus default interest.<\/p>\nWhat exactly is la complementaria?<\/h2>\n
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Why are you receiving this additional tax assessment?<\/h2>\n
The impact of the 'Valor de Referencia' (New Legislation)<\/h3>\n
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Calculation example: The financial impact of an audit<\/h2>\n
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