January 8, 2007 at 1:20 pm #52540
January 8, 2007 at 5:08 pm #68241
I think the journalist has it wrong. It doesn’t affect off-plans, it’s something different.
It refers to money laundering really and to declare where your funds are actually coming from. That is to say if amounts of cash have been paid between the parties before completion.
Before completion I can assign my contractual position to whomever I want as long as the developer allows it and only the person that actually appears at completion is the one obliged to pay the associated purchase taxes.
This doesn’t mean that the first party who assigned their position prior to completion isn’t liable for taxes, because he is and always has been for income taxes, because they have made a profit. Another matter being if they actually declare or not this profit to the Tax Authorities as they do not actually appear named at completion in any way. But the obligation is and HAS always been there to file and pay taxes.
In short: off-plan will go on and this law is rather useless IMHO adding nothing new to what we already had. Being ironic: I’d say it’s a makeup law with the object of attracting votes in the forthcoming elections giving the impression that the ruling party is fighting corruption. Tse tse.
January 8, 2007 at 5:11 pm #68242
Drakan, can you explain more ❓
January 8, 2007 at 5:14 pm #68243
Sorry, I always take long amending texts. 😉
January 8, 2007 at 5:27 pm #68244
92000 for sale just in Malaga area suggests many are overpriced though, and why would anyone wish to buy off-plan now with all the risks we read about here etc, mis-selling, hype, lies, agents exhorbitant commissions added on, etc etc, and why would anyone now want to buy with stage payments effectivally funding the build in such a weak market?
We don’t make stage payments in the UK so why do it abroad, my advice is not to buy off-plan in Spain or elswhere unless it’s a max. of 10% down, balance on completion (as in UK) which might then focus the minds of the dodgy developers and agents?
And, don’t forget to negotiate hard 20% + off the agents price if you do fall for their spiel, get a cooling off period of 2 weeks at least to get your deposit back, everything down to the last detail in writing by all concerned including specifications and brochure signed legally, construction delay penalties, and trust no-one etc etc.
January 8, 2007 at 5:34 pm #68245
January 9, 2007 at 9:17 am #68250
The article from newspaper SUR does mention clearly what you were saying Dorothy. If what they publish is true this will indeed affect off-plan because it will tighten the control over the person who assigned the contract in the first place forcing him to pay taxes etc….
This could imply that even more developers will now reject assignments in off-plans. In any case many were already doing this long before this law came into force because the off-plan market had already taken a hit a few years ago (peaked off in late 2003- early 2004) and they didn’t rely anymore in assignments wanting to get “hold” of the end purchaser not letting him go.
The off-plan market was already hit and this new law from December only helps to finish it off. I’m sure off-plan will be a great investment again in 4-7 years time from now, but certainly not now, at least in Spain.
January 9, 2007 at 9:47 am #68252
Thanks Drakan 😉
January 9, 2007 at 9:50 am #68253
You’re welcome. 😉
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