WHO IS RESPONSIBLE TO PAY THE TAX?
Buyers often wonder who is responsible and the liability to them if the seller did not pay the home luxury tax in the past.
The buyer is only jointly liable for the tax payment in the fiscal period when they are buying (according to section 7 of Law # 8683 and section 20 of the Regulation of the Solidarity Tax law). Therefore, the buyer would not be responsible for the previous years:
"SECTION 7.- Affidavit
Taxpayers must submit, every three (3) years, from the effective date of this Law, within the first fifteen (15) calendar days of January of the corresponding fiscal period, a sworn statement that updates the value of the real estate, per the form and the conditions defined by the General Directorate of Taxation. If the appraised value is greater than the value registered by the administration, the new declared value will automatically modify the applicable tax base for the fiscal period in which it is filed.
When the real estate object of this tax belongs to several co-owners, they must declare it jointly.
The owner of two or more adjoining and/or overlapping real estate must accumulate them in a single declaration for this tax, as long as their use coincides with those indicated in article 2 of this Law, and said assets form a housing use unit.
In the condominium property regime, the declaration of each condominium must include the corresponding proportional value for the common areas.
In case of transfer of ownership of the real estate, the new owner will be jointly and severally liable for the tax payment of the fiscal period in force on the date of acquisition and the related interest. (The previous paragraph as amended by Article 3, section a) of Law No. 8981 of August 25th, 2011)"
Also, the Regulation of the Solidarity Tax law states:
Real estate laws and the tax implications can be complex. Consulting with an attorney can help avoid costly non-payment fines.