This topic contains 18 replies, has 7 voices, and was last updated by 
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Is there any laws in spain to stop people righting down the selling price of their property and doing a deal in sterling at home,thus avoiding the obvious.
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There are lots of laws in Spain but they are only for the archives & the lawyers offices.
The deal can be done anywhere. You still have to have it notarised & have it transfered into your name. A value has to be placed on the transfer. -
Do you mean a beliveable price ?.
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We paid part sterling for a house but the seller still had to pay the (then) 5% retention and we as buyers pay the normal transfer taxes.
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But that figure is based on the aggreed selling figure isn’t it ?
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Of course their are laws but that does not mean it’s impossible. It used to be common practice both in Spain and France. There was always a small room set aside in the notary’s office for the counting of the cash paid ‘sous la table’.
The difficulty is it requires the agreement, trust and co-operation of all parties involved.
Recently the Hacidenda have been cracking down. An unconvincing low ‘paper’ selling price may well attract attention.
I would not advise doing it in today’s climate. -
But that figure is based on the aggreed selling figure isn’t it ?
you will be taxed on the official price regardless of what you claim to be the selling price.
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Garry – whatever is the official selling price of the property on the purchase contract will attract the 3% retention for non residents. If you have a private deal in sterling then you have to trust the buyer will pay it and it is illegal to do. A way around it is to have a figure for fixtures and fittings and that can be part of the sale in a separated part not attracting the 3%. However, selling a property for 50k with a furniture pack of 100k will raise eyebrows!
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Not, if you have Goya, Valasquez as part of the listed fixture & fittings.
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I wasnt specifically mentioning you Shakeel 🙂
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I wasnt specifically mentioning you Shakeel 🙂
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Inez, now how did I not get that impression !!!!!!!!!!!!!!!!!!!!.
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Inez, now how did I not get that impression !!!!!!!!!!!!!!!!!!!!.
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Don’t forget also that if you do a to good deal they will tax you on whatever they think the property is worth. Had it happen to several of my customers when I worked as an agent that they the next year got a letter stating that the property was to cheaply bought and now they have to pay compensation to the state. I’m 100% sure these people didn’t try to make side deals since some of them where friends of mine. This is something that needs to be taken into account when you buy distressed homes at the moment.
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Don’t forget also that if you do a to good deal they will tax you on whatever they think the property is worth. Had it happen to several of my customers when I worked as an agent that they the next year got a letter stating that the property was to cheaply bought and now they have to pay compensation to the state. I’m 100% sure these people didn’t try to make side deals since some of them where friends of mine. This is something that needs to be taken into account when you buy distressed homes at the moment.
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The title of this thread is a bit misleading. Real short selling is defined here:
http://en.wikipedia.org/wiki/Short_(finance)
Shorting is a topical subject right now since governments in trouble, such as Spain blame short selling for many of their problems.
Derivative shorting of mortgage backed securities on Wall Street did cause many of the worlds current economic problems. -
The title of this thread is a bit misleading. Real short selling is defined here:
http://en.wikipedia.org/wiki/Short_(finance)
Shorting is a topical subject right now since governments in trouble, such as Spain blame short selling for many of their problems.
Derivative shorting of mortgage backed securities on Wall Street did cause many of the worlds current economic problems. -
Sorry my terminology is wrong but seemed like the best way to describe what i was thinking.
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Sorry my terminology is wrong but seemed like the best way to describe what i was thinking.
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