selling in spain
#1
Just Joined
Thread Starter
Joined: Aug 2006
Location: costa de la luz
Posts: 19
selling in spain
Hi All,
this thread may already be on here somewhere
so sorry for not doing a proper search..
we are hoping to sell our property in spain
the contract we have signed states we are selling for 150,000euros
but at notary we are declaring 110,000euros
first question..do we need a solicitor, or can we do everything on our own
second question...is their any chance of them after signing at notary, refusing to pay the 40,000 difference
where would we stand if they refused
all comments welcome
thanking you all in advance
this thread may already be on here somewhere
so sorry for not doing a proper search..
we are hoping to sell our property in spain
the contract we have signed states we are selling for 150,000euros
but at notary we are declaring 110,000euros
first question..do we need a solicitor, or can we do everything on our own
second question...is their any chance of them after signing at notary, refusing to pay the 40,000 difference
where would we stand if they refused
all comments welcome
thanking you all in advance
#2
Re: selling in spain
Hi All,
this thread may already be on here somewhere
so sorry for not doing a proper search..
we are hoping to sell our property in spain
the contract we have signed states we are selling for 150,000euros
but at notary we are declaring 110,000euros
first question..do we need a solicitor, or can we do everything on our own
second question...is their any chance of them after signing at notary, refusing to pay the 40,000 difference
where would we stand if they refused
all comments welcome
thanking you all in advance
this thread may already be on here somewhere
so sorry for not doing a proper search..
we are hoping to sell our property in spain
the contract we have signed states we are selling for 150,000euros
but at notary we are declaring 110,000euros
first question..do we need a solicitor, or can we do everything on our own
second question...is their any chance of them after signing at notary, refusing to pay the 40,000 difference
where would we stand if they refused
all comments welcome
thanking you all in advance
and the contract you have signed to say you are selling for 150,000 should be legally binding
#3
Re: selling in spain
And if they find out that you have underdeclared, the extra 40k will be taxed as a gift - plus a large fine!
#6
Re: selling in spain
So, my advice would be to get the 40k BEFORE signing the contract.
Yes it's illegal, yes everyone does it, and yes you will be in deep doo-doo if the tax man finds out.
#7
Re: selling in spain
Hi All,
this thread may already be on here somewhere
so sorry for not doing a proper search..
we are hoping to sell our property in spain
the contract we have signed states we are selling for 150,000euros
but at notary we are declaring 110,000euros
first question..do we need a solicitor, or can we do everything on our own
second question...is their any chance of them after signing at notary, refusing to pay the 40,000 difference
where would we stand if they refused
all comments welcome
thanking you all in advance
this thread may already be on here somewhere
so sorry for not doing a proper search..
we are hoping to sell our property in spain
the contract we have signed states we are selling for 150,000euros
but at notary we are declaring 110,000euros
first question..do we need a solicitor, or can we do everything on our own
second question...is their any chance of them after signing at notary, refusing to pay the 40,000 difference
where would we stand if they refused
all comments welcome
thanking you all in advance
#9
Re: selling in spain
I used a solicitor for every house I purchased in the UK, and I have never used a solicitor here in Spain (my OH strictly prohibits it).
#10
Re: selling in spain
Everyone certainly used to do so but times have changed over the last few years.
There is a very large program to stamp out tax fraud in Spain which has been in existence for the last couple of years. One area that is receiving a lot of attention is property sales. The notaries and registrars are all using computer systems which can highlight any potential under declarations and also more information about the source of the money is required.
They also have access to the bank accounts of the buyers and sellers and can easily check where the money came from.
Any under declaration of more than 20% is likely to present problems which may only come to the surface some time after the sale. You also have to be very careful what you do with the 40k in cash as it will be very difficult to launder it and to exchange it for Sterling will be an even bigger problem.
There is a very large program to stamp out tax fraud in Spain which has been in existence for the last couple of years. One area that is receiving a lot of attention is property sales. The notaries and registrars are all using computer systems which can highlight any potential under declarations and also more information about the source of the money is required.
They also have access to the bank accounts of the buyers and sellers and can easily check where the money came from.
Any under declaration of more than 20% is likely to present problems which may only come to the surface some time after the sale. You also have to be very careful what you do with the 40k in cash as it will be very difficult to launder it and to exchange it for Sterling will be an even bigger problem.
#11
Forum Regular
Joined: Nov 2007
Location: Guadacorte, Cadiz
Posts: 154
Re: selling in spain
I have to echo what Fred says, it USED to be the norm, but is certainly not the case anymore, it's actually quite frowned upon now by all parties generally.
I know I would not go down that road anymore, once yes, but not now, very very risky.
I know I would not go down that road anymore, once yes, but not now, very very risky.
#12
BE Enthusiast
Joined: Apr 2006
Posts: 614
Re: selling in spain
I think if I heard of either of these situations (I'm sure they must happen) I wouldn't have any sympathy for the aggrieved party. It may sound mean, but I'd probably just laugh
Last edited by pete_l; May 29th 2009 at 11:29 am.
#13
Re: selling in spain
I don´t want to get into the argument should you or shouldn´t you but agree with Fred regarding no more than 20% being paid in the black.
I can tell you from experience that we recently have started to get clients coming into the office for help having been found out by the taxman for under declaring!!
I can tell you from experience that we recently have started to get clients coming into the office for help having been found out by the taxman for under declaring!!