Contesting capital gains

A TECHNICAL REPORT JUSTIFYING THE LOWERING OF TAXABLE BASES

Various court rulings establish that the tax on the Increase in Value of Urban Land (previously Capital Gains), is not to be applied in the event that a property has not been reappraised between its purchase and sale. Tinsa performs valuations and reports upon request to help contest the taxable base established by the government, as well as formalise legal documents under Stamp Duties and calculate the tax payment on the transfer of properties. These include the Increase in Value of Urban Land, the Property Transfer Tax and the Inheritance and Gift Tax.

LAW FIRMS
AND TAX ADVISORS

INVESTORS AND HOLDING COMPANIES
(FAMILY OFFICES)

COMPANIES
FROM ANY SECTOR THAT HAS AVAILABLE ASSETS. THIS SERVICE IS OF INTEREST TO THE LEGAL, FINANCE AND PATRIMONY DEPARTMENTS.

1. THE SITUATION.
A client was selling an industrial unit for 25 million euros and the government planned to charge the Increase in Value of Urban Land (previously capital gains) citing the increased value of the property in the time since its purchase.

2. OUR SERVICES.
Tinsa issued a technical report to contest this based on the valuation made by its experts, in which it claims that during the time that the property was in possession of the client, a decrease in value of the land value was recorded, meaning no applicable capital gains should have been recorded.

3. THE RESULT.
Thanks to Tinsa’s involvement, and based on our expert report, the Administrative Court ruled in favour of our client. The old owner was able to save considerably (€550,000) and set a clear precedent for the future.