Re: swapping homes rather than waiting to sell
 

Have a look in the Classifieds Forum on here.

Re: swapping homes rather than waiting to sell
 

This is exactly what i am looking to do, and it seems like the most appropriate solution given the current climate in both property markets.

i have a 2 bed penthouse flat in the U.K that i currently let out for £690 a month.

The property is worth £150k so i would be looking for a swap that incurred no financial input...just a straight swap. i think this method would appeal to quite a few parties including those who have 'bought to let' in spain but are finding it it difficult(if not impossible) to do so, and to those simply looking to move home.

At the minute we have no idea where we would like to live in Spain so all offers will be seriously considered while we explore our options.

Curious? drop me a line [email protected] or call me on <<snip>>

Re: swapping homes rather than waiting to sell
 

hi why dont you e mail me at [email protected], pat

Re: swapping homes rather than waiting to sell
 

How would you get round paying the tax? All property transactions have to go through a notary!

Re: swapping homes rather than waiting to sell
 

Surely it could still go through a notary and appropriate taxes paid? It's only the same as you selling a house for £100k and then buying one for £100k, just that no actual money changes hands. The house will still have a monetary value.

I think it's a brilliant idea and definitely one we will be looking into when we come to sell.

Re: swapping homes rather than waiting to sell
 

Even though no money changes hands, in Spain at least, you will be liable for taxes. A price on the value of the house will have to be put on the deeds at the notary. On this price you will have to pay 7%, plus notary fees, plus lawyer's fees (if you use one).
You could all decide to put a minimum price on the house but make sure it is the same as, or more than, the catastral value. You wouldn't want the Spanish taxman coming after you for suspected under declaration on the value of the house.
If you decide to do it then make sure that you keep all the paperwork in a safe place.
I have scoured the internet in Spanish looking for this scenario and after 20mins have found nothing. It is not a common occurence in Spain.
I have however found this British site; http://www.swapmyvilla.co.uk/index.html
Hope it helps

Re: swapping homes rather than waiting to sell
 

It would need to be a lot more than the catastral value.

The tax office publishes a list of factors by which you multiply the catastral value to arrive at an "acceptable" price. This factor varies from town to town but is typically 2.5 to 3.5 times the catastral value.

Under declaration results in large fines and also they can claim that the difference in price is a "gift" and as such, subject to gift tax at very high rates.

All transaction details are now automatically run through the tax office computers to identify potential under declarations.