I am in the process of selling my property in Mojacar and have recently seen the escritura which until now I was unaware that the price paid for the property is shown as 50,000.00pounds less than the actual price paid. The deal was finalised with the use of a local solicitor as Power of Attorney. I know nothing about this lower price being on the escritura. The solicitor has since retired and has no papers neither have the estate agents.
What can I do as I seem to be liable for tax on the profit from the lower price.
I am must admit I am a little surprised that you would not have known this. It seems to be simply the black and white money scenario. What is declared on your escitura is the white, and the €50,000 was the black. Black money had to be paid in CASH, or if it was a British seller and British buyer sometimes a payment from UK bank to UK bank. Either way you would have needed to have been involved in that ‘transaction’. This under the counter payment helped buyers who then paid less purchase tax and sellers who may have reduced capital gains tax liability.
It has meant that nowadays you can be selling at a loss but still have a capital gains tax liability. Current £ exchange rates may offset the loss as we are getting more £’s for our €’s – if you are lucky enough to get a sale.
Can you do anything about it – I would suggest not. But be interesting if anyone has a different opinion,
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