- May 15, 2008 at 1:50 pm #53949
So, like it says above. Is it possible (& legal) to buy a house from a British person, and pay them in part in Sterling? If so, what would be the potential pitfalls for such a deal?
- May 15, 2008 at 1:59 pm #82542
Yes we did it and paid by bankers draft from a UK bank. It is calculated on the official documents into euro though. I also know someone who did a part exchange, took a holiday cottage in Devon as part payment.
- May 15, 2008 at 2:08 pm #82543
There is obviously currency exposure/differential. The correct valuation, declaration on the contract etc.
The same applies for part exchange of a UK property. Capital gains Tax stamp duty, Inheritance tax,. VAT or Stamp duty on the Spanish side.
It could get quite complicated and it needs to be done by some one financially sophisticated & tax savvy,
- May 15, 2008 at 2:13 pm #82544
We paid one third in the (then) peseta and the rest in sterling. It was problem free, did use a Lawyer though.
- May 15, 2008 at 3:13 pm #82546
If the sellers are non resident then you have to retain the 3% retention for payment against CGT to Hacienda, which of course will have to be in euros.
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