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

Spanish Property Insight Forums Spanish Property Forums Property Questions & Answers Buying from Brits, and paying (in part) in Sterling

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    • #53949
      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
      katy
      Blocked

      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
      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
      katy
      Blocked

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

    • #82546
      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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