- November 14, 2015 at 12:28 pm #188178
i have a property currently for sale on the coast in Granada province. My neighbour here in the uk has expressed an interest and wishes to buy for sterling cash. Unsure how we go about this. Any advice appreciated.
- November 18, 2015 at 11:51 am #188285
It’s fairly straightforward. It’s just like any other sale, but you’ll be paying in pounds in the UK, right?
First agree a price in £, convert into € using an appropriate exchange rate (be aware that the £ is currently getting stronger against the €). Then get a banker’s draft or pay into an escrow account (or whatever payment method you choose), and take proof of that to the notary on the day of signing the deeds. Otherwise the process is just like any other sale, with one important exception. If you are UK-resident (which it sounds like you are), the buyers will have to pay the Three percent Capital Gains Tax Retention on property sales by non-residents, so that means 3% of the price you agree (in €) will have to be paid to the tax authorities in Spain in €. So you can only accept 97% in £ in the UK.
You’ll need a gestor or lawyer to help you in Spain. I don’t know how well you know your neighbours, but make sure you’ve got payment guaranteed (like a banker’s draft) before you sign over your property to them. Always better safe than sorry.
- November 21, 2015 at 12:05 pm #188352
thankyou for the info. Will I also be liable for any capital gains tax in Spain and or UK ?
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