Buying from Brits, and paying (in part) in Sterling

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This topic contains 4 replies, has 4 voices, and was last updated by Profile photo of Anonymous Anonymous 8 years, 6 months ago.

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  • #53949
    Profile photo of Anonymous
    Anonymous
    Participant

    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?

    Thanks

  • #82542
    Profile photo of katy
    katy
    Spectator

    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.

  • #82543
    Profile photo of Anonymous
    Anonymous
    Participant

    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,

  • #82544
    Profile photo of katy
    katy
    Spectator

    We paid one third in the (then) peseta and the rest in sterling. It was problem free, did use a Lawyer though.

  • #82546
    Profile photo of Anonymous
    Anonymous
    Participant

    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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