Reply To: CAPITAL GAINS TAX & PRICE QUOTED IN ESCRITURA

#218959

macgd016
Participant

Back in the mid 2000’s, although illegal, it was ‘customary’ to pay a significant proportion of the selling price in cash or Black Money.  What was often not explained is that only the amount of the bank transfer would be written on the escritura as the sale price.  Clearly this was institutionalised tax evasion and has largely been stamped out now but vendors or estate agents still ask for it on occasion.  The problem as you have found is that when you sell there will be significant CGT to pay.