The Contentious Administrative Court of Elche, which is analyzing the settlements of the Town of Torrevieja, has already given a sentence declaring the nullity of two declarations of capital gains tax, condemning the aforementioned City Council to return to the plaintiffs the money paid plus the due interests derived.
In fact, judgment 109/18 of the aforementioned Court states that “since there has been no increase in the amount of money obtained in the transfer of a property, it must be understood that the taxable event of the tax did not occur”.
Therefore that sentence increases the probability of success and, although it is has followed the same trend of other previous resolutions of other courts, we find it especially important, due to the direct application to the Town of Torrevieja, against which we maintain numerous litigations for this same reason.
We encourage those people who are thinking of claiming the settlement of the capital gains tax because they had to sell a property renouncing any benefits (or even sold it losing some money); but first we should advice them that, as soon as they receive the SUMA settlement they should let their lawyer know, since they only have a month to appeal the capital gains tax. They must also provide their lawyer with all the documentation they have in order to prove the acquisition value, such as an appraisal (in case they bought with a mortgage) or an updated expert report.
Lastly, we would like to point out that we are claimins several capital gains settlements for the sale of homes that were bought many years ago and, simply because of the increase in the cost of living (although apparently they may have a benefit) if we update the acquisition price, we discover that they are selling at the loss. This possibility has been expressly accepted by several judgments from outside our community, and several cases are currently pending before the aforementioned Contentious Court of Elche.
For instance think of aproperty that was purchased in February 1990 for the price of € 40,000 and sold in January 2019 for a price of € 80,000: if we update the purchase price with the CPI (which has changed by 116.6% since then) we get an updated acquisition price of € 86,640, which shows that no increase in value has been obtained with the sale.
From Civil SP SL we encourage you to claim the capital gains settlements in the transmissions in which there has been no increase in the amount obtained as a benefit, not only for the inadequacy of the tax but also for the high amounts claimed (confiscatory in some cases), which are also explicitly prohibited by Art. 31.1 of the Spanish Constitution and give us another reason to claim.
Venancio Parra.
Doctor in Law