June 8, 2006 at 7:59 pm #51890
Could anyone advise on this please. We are interested in a property in Alicante area owned by a brit who is resident in the uk. He suggests if we want to proceed we can carry out the transaction in pounds sterling via solicitor in the uk. My concerns are this, how would that work regarding my tax liability in Spain as well as the vendors, it would surely entail employing legal advice here and there. I am uneasy as I wouldnt want to be stung for the vendors capital gains liability or introduce complex legal issues. Is this unusual.Scooter.
June 8, 2006 at 9:51 pm #62705
You can do the transaction in GB pounds (except for the 5% retention) but using an english solicitor is a NO NO. Get a spanish lawyer.
June 9, 2006 at 7:38 am #62709
Would you seriously consider selling buying a UK property through a Spanish lawyer? 🙄
June 10, 2006 at 9:46 am #62742
Thanks Katy and Rawlins sounds like trouble.
Katy can you advise more on the ability to do the deal in uk sterling and what is the 5% you mention.
June 10, 2006 at 10:56 am #62743
If you buy from a non-resident, you have to subtract 5% from the purchase price and pay it to the Spanish ministry of Finance within 30 days of the purchase as a “deposit” for the sellers capital gains tax.
If you do NOT pay this and the seller does NOT pay their capital gains tax, YOU are liable for the CGT instead !!!
This all came from David Hampshires buying in Spain..so should be correct still, its the 2005 ed.
He then says that you have to make a declaration to the tax office and give a copy of this to the seller, who can then use the receipt to claim back the 5% once they have paid the CGT!!
Hope this makes sense…seems very convoluted way of doing things to me…
June 10, 2006 at 10:13 pm #62752
There are very good UK based lawyers well versed in Spanish law who can take care of the whole buying / selling process. – A couple of them advertise in Homes Overseas magazine.
The only problem that I can see, is that as the property is registered in the Spanish Land Registry, I would assume that the completion would need to be done before a Spanish notary. (Correct me if I’m wrong)
This may be easier if you had a local legal representative as in my experience, many Spanish Notaries do not speak English.
There are also other advantages of using a local (and reputable) lawyer e.g. Relationship with the local townhall, local knowledge for future or pending developments, the necessary searches etc etc.
I’m sure someone on this forum would recommend a lawyer for you if you need one.
Good luck with your purchase
June 10, 2006 at 10:30 pm #62753
yes the completion needs to be done at the Notario with all parties (both seller and buyer and developer) present and if either cannot attend then a POA can be issued to the lawyer on their behalf to attend in their absence.
They dont speak english at the notaries and when myself and my husband completed the whole meeting in a boardroom was in spanish. We didnt understand a friggin word and could have signed our souls away. Still..you live and learn
June 12, 2006 at 8:57 am #62761
For your information there is an excellent Notary in Picadilly, London which has Spanish members and if you wished could have you sign an escritura which has a dual text, i.e. Spanish and English. Obviously this would br more expensive because of the translation. They would also obtain the necessary “Apostille” which would make the document legal in Spain and then you could send it to the Land Registry in Spain for registration.
June 12, 2006 at 9:24 am #62762
Hi just add my bit i went to see my british lawyer he said he could not help and said he would give me the name of a special lawyer but warned it would be costly £500.00. having looked about i found you could go to the Notary in Manchester make an appointment and for a reasonable cost for poa £40.00 quid this is in spanish and English. took less than an hour. They are very helpfull hardest part getting them on the phone very bizzy.
June 21, 2006 at 7:26 pm #62970
Thanks to all, just back from 10 days in Algorfa Costa Blanca region, learned that the property we had interest in was on the market for 149000E which was 20000E more than the seller was asking. Think I will change careers. 8)
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