Asturias – Buying from a non-resident

[Anonymous]

Hi everyone,

I’m about to go to escritura on Thursday this week, on a re-sale property owned by a non-resident, in Asturias. The agent has just sent me the details of payment on the 200,000 Euro agreed price.

10,000 that they already have as a deposit
186,000 as a bank garanteed cheque
4,000 that I hold back as the vendor is a non-resident

From my time on this learned forum, I kind of have the impression that 5% is the norm to with-hold and I assume that this is written into law.

Is there something about the Asturias, that the agent would ask me to withold less?

Thanks in advance for your help.

Regards,

Mike

[Anonymous]

The “retention” that a purchaser has to withold when buying from a non-resident was lowered from 5% to 3% as of Jan 01 this year.
However, 4000E isn’t 3% of 200000E either! If 4000E is 3% of the “price” then the price would be 133k.
What is the agent’s commission element of the 200k?

[Anonymous]

Hi hillybilly,

I’ll get onto the agent tonight and find out. Many thanks for the quick response, as I was going to fire off a load of emails tonight based around the old ratio of 5%.

I’ll let you know what goes down.

Regards,

Mike

[Anonymous]

There are additional buying costs: stamp duty at 6 or 7%, some 20% of notarial costs, and land registry costs. Estate agent fees are also subject to VAT at 16%. Have you agreed who pays the plusvalia – it should be the seller.

[Fuengi (Andrew)]

the for 4000€ is a rentention due to the fact that this vendor is not a fiscal residence. It should be a 3%. So in this case not 4.000€ but 6.000€. This 3% is based on the OFFICIAL SELLING PRICE

If the 4.000 is the 3% then you are OFFICIALLY buying the property for 133.333,33€.

If this is the case and you’ve already given 10.000€. Then the bank will need to prepare a cheque for 123.333,33€ and the rest will either be another cheque or in cash.

This ‘rest’ (66.666,67€) is BLACK MONEY. Your looking at paying 33% in black money. This is up to you, but if you do intend to do this make sure the official purchasing price is higher than the ‘valor catastral’ or you the local gov. will charge you.

Unless black money was agreed upon (which is never a good idea) they can’t pull out now, so don’t pay it if you don’t want to.

[Anonymous]

Hi Mike,

Wow, June came round quickly!!

Have the estate agent specified 186,000 as a bankers draft/ cheque? If so, I can’t see how you are paying black money as this is usually a cash under the table job…I’m sure your deposit was transfer or cheque too? Ask how much commission they are making.

I think the agent we brought thru took only 5 % commission..yeh, more than the UK but less than a lot of other agents!

Ask to see the ‘draft’ escitura, its probably written and can be faxed to you. All will become clear then as the price on it is the offical price, anything extra is illegal under the table stuff, but still common here unfortunately.

Anyway, good luck…and yell if you need any help.

Heather

[Anonymous]

There does seem to be some doubt about how much money is involved.

A point that escapes many British buyers is that the notary is not the place to negotiate anything or make any sort of discovery.

Every detail should be crystal clear and in print before you enter the notary’s office. In fact, the entire notarial procedure should be a mere, but necessary, formality.

[Anonymous]

Hi everyone,

It was an error by the agent – she has confirmed that I hold back 6000 which is 3% and there is no black money involved.

Once again, thank you to you all.

Heather – I’ll pm you when I get back – let you know how things went.

[Fuengi (Andrew)]

mortimm wrote:

Hi everyone,

It was an error by the agent – she has confirmed that I hold back 6000 which is 3% and there is no black money involved.

Once again, thank you to you all.

Heather – I’ll pm you when I get back – let you know how things went.

GOOD!

hope you enjoy the place!

[Author]

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