August 2017 May 2017 - Page 30

28 LAW talk Town Halls to repay taxes to property sellers A decision of the Málaga administrative courts may have set a precedent for thousands of vendors in Andalucia who sold their properties for less than the purchase price. The local Town Hall tax – Plusvalía – has been charged on all property sales, inheritances and donations for many years. In some cases the tax has been tens of thousands. This is despite the fact that the property owner may have made a loss on the sale, particularly on properties bought in the property boom and sold after the crash in 2008. This court ruling mirrors other regional court decisions in Madrid, Catalonia, Valencia and Rioja. The reasoning of the Judge is that the Plusvalía - whose full title is Impuesto sobre el Incremento del valor de los terrenos de naturaleza urbana – is implicitly a tax on an increase in value. Since the beginning of the crisis ma