View Full Version : Tax Do we have to pay ITP property tax when purchasing in Tenerife?

13-09-2012, 11:59
Can anyone please give some advice?
We are buying a property and need to know if we will pay ITP tax at 7% on the price of the property or the price of the value of the property. The price has been reduced from the original purchase price and so we need to know where we stand as I have heard of people sent bills years later for monies outstanding due to incorrect payments on properties.

13-09-2012, 14:23
It seems to be the price if the value that the tax office put On it
Gave a search as there has been some discusion on this.

mike in chayofa
13-09-2012, 15:23
You will pay tax on the declared amount paid on the escritura.

The hacienda have an 'official' valuation on any property (which have mostly not been adjusted, although property values have fallen over recent years), so if the official valuation is higher than the declared price, you may get a bill for the tax on the difference in the future. There is no way round this, because you can't declare more than you have paid.

You can find out the official valuation by going to the valuation office in CC Zentral (next door to the hacienda) on the 1st (?) floor. You fill in a request with the address, catastral number etc and the valuation is available a couple of days later. There is no charge for this, although if you get your lawyer to do it, they will obviously charge for their time.

Having done this, there is still nothing that you can do apart from wait for a potential tax bill, but at least you will know the possible extra (unfair) tax that you may have to pay and keep it on one side so that it doesn't come as a surprise if it does get charged.