A COUNCIL on the Costa del Sol has returned over a thousand euros in capital gains tax which it improperly collected from a resident who had transferred his home to his ex-girlfriend.
The man had bought the property in Velez Malaga in 2009 with his then-girlfriend. When the couple split up a year later, the girl continued to live in it and took over the mortgage. In 2015, the man applied to the bank to have the property transferred to his ex-girlfriend’s name and was astonished to receive a bill for capital gains tax a year later.
The man paid the amount, but appealed it at a local court, which rejected his claim. The council has now decided to repay the amount, plus interest.
A spokesman for the town hall said it made the decision “since the transfer was not subject to the tax on the increase in the value of urban land”.
The man has since commented, “I neither sold nor had an equity increase. On the contrary, it cost me €2,300 in paperwork.”