British owners of homes in Spain may be hit with retrospective tax bills if the authorities decide they paid too little for their property.
The Spanish government is re-examining the sale of tens of thousands of homes that have taken place over the last four years.
The Impuesto de Transmisiones Patrimoniales (ITP) is Spain’s equivalent of Stamp Duty, and applies only to the resale of houses: new-builds are exempt. It amounts to a percentage of the value of the house, which from region to region but averages around eight percent.
Now, though, the tax authorities are suspicious that some properties may deliberately have been sold at less than the going rate - and plan to recoup the tax they believe they have missed.
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