Transfer Tax value in case of Purchase & Mortgage Deed

The Tax Law allows the Administration consider the auction value agreed id the Mortgage Deed as the value of the asset for tax purposes. In this option the assessment is limited, and the Administration does not need to consider the appraised value of the property, and the expert doesn't need to visit the asset or explain the calculations.

The Administration may choose any of the means of assessment referred to in art 57 of the current LGT 58/2003 , including any other means determined by the Law of each tax ; although this choice does not relieve them from compliance with certain requirements so that such assessment is conducted properly.

With regards to excluding from the auction value the provisions for interest, costs or expenses of execution, this will be decided by  the law of the pertinent Autonomous Community.

The value of auction is the result of an expert appraisal. The Tax Payer can opt in its claim for it's own expert appraisal to contradict this procedure, and to determine the actual value of the property for tax purposes.



photo credit: <a href="https://www.flickr.com/photos/fabiotel/7687979198/">Fabio Téllez</a> via <a href="http://photopin.com">photopin</a> <a href="http://creativecommons.org/licenses/by-sa/2.0/">cc</a>