Black Money in Spain and the building boom.
Dec 15th 2008, 10:40 pm
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Joined: Apr 2008
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Black Money in Spain and the building boom.
Of course, dirty — or undeclared — money is something of a national custom in Spain. During property deals, the real value is never declared to the tax authorities. Instead, envelopes stuffed full of cash are passed between buyer and seller, while the notary or lawyer witnessing the transaction, conveniently leaves the room.
Just how much “dirty money” entered Spain in the boom years is impossible to say. But annecdotal evidence suggests that 40 per cent of all €500 bills in existence are circulating in Spain. They are called “Bin Ladens” because like the world's most wanted man, one knows what they look like, but no-one has ever seen one. These €500 bills fill the envelopes in “black money” property deals.
Fernando Fernandez, an economist who is rector of the University of Nebrija in Madrid, said: “There was a lot of ‘black money' in Spain anyway. But money-laundering did not drive the property boom.” Professor Fernandez said the boom was caused by low interest rates, the rush of foreigners anxious to buy investment properties and the immigration boom, which provided a workforce and a group of potential buyers. “Strict banking rules in Spain have stopped criminal activities from flourishing,” he added.
Taken from the link below.
http://business.timesonline.co.uk/to...cle5348314.ece
Just how much “dirty money” entered Spain in the boom years is impossible to say. But annecdotal evidence suggests that 40 per cent of all €500 bills in existence are circulating in Spain. They are called “Bin Ladens” because like the world's most wanted man, one knows what they look like, but no-one has ever seen one. These €500 bills fill the envelopes in “black money” property deals.
Fernando Fernandez, an economist who is rector of the University of Nebrija in Madrid, said: “There was a lot of ‘black money' in Spain anyway. But money-laundering did not drive the property boom.” Professor Fernandez said the boom was caused by low interest rates, the rush of foreigners anxious to buy investment properties and the immigration boom, which provided a workforce and a group of potential buyers. “Strict banking rules in Spain have stopped criminal activities from flourishing,” he added.
Taken from the link below.
http://business.timesonline.co.uk/to...cle5348314.ece
Last edited by poshnbucks; Dec 15th 2008 at 10:50 pm.
Dec 16th 2008, 5:14 am
#2
¿Dónde estoy?
Joined: Jun 2004
Location: my paradise - Jávea
Posts: 13,330
Re: Black Money in Spain and the building boom.
Of course, dirty — or undeclared — money is something of a national custom in Spain. During property deals, the real value is never declared to the tax authorities. Instead, envelopes stuffed full of cash are passed between buyer and seller, while the notary or lawyer witnessing the transaction, conveniently leaves the room.
Just how much “dirty money” entered Spain in the boom years is impossible to say. But annecdotal evidence suggests that 40 per cent of all €500 bills in existence are circulating in Spain. They are called “Bin Ladens” because like the world's most wanted man, one knows what they look like, but no-one has ever seen one. These €500 bills fill the envelopes in “black money” property deals.
Just how much “dirty money” entered Spain in the boom years is impossible to say. But annecdotal evidence suggests that 40 per cent of all €500 bills in existence are circulating in Spain. They are called “Bin Ladens” because like the world's most wanted man, one knows what they look like, but no-one has ever seen one. These €500 bills fill the envelopes in “black money” property deals.
the first Christmas we were here, the guy in front of me in Don Dinos had a wallet full!
probably just sold a house
