My wife and I are in the process of selling our villa. The property is advertised at a given figure and the contents subject to negotiation. We are and always have been tax resident in UK. We have had offers which include the contents. For UK tax purposes we wish to accept one of the offers at a price lower than the offer and make up the difference with a very modest sum for the contents. From a Spanish perspective is there anything that we should be aware of, or anything that could cause us difficulties. Also is this advantageous, or otherwise, for the purchaser.
Many thanks in anticipation.
Selling Property in Spain
- peteroldracer
- Andalucia Guru
- Posts: 7774
- Joined: Wed Oct 13, 2004 5:56 pm
- Location: Los Alcázares, Murcia
Re: Selling Property in Spain
Both parties will save a little bit of tax, but take your abogado’s advice on how far to go with value of the contents. If and when your buyer comes to sell he may be making himself liable to a higher capital gains tax, buying cheaper, especially if the property market changes while they own it.
As with most things it can be safer and easier to be absolutely honest.
As with most things it can be safer and easier to be absolutely honest.
I used to cough to disguise a [email protected] I f@rt to disguise a cough.
-
- Andalucia Guru
- Posts: 16058
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Selling Property in Spain
Remember that as non residents you are liable for CGT on the sale. They will deduct 3% from the proceeds to cover this.
Sid
Sid
-
- Andalucia.com Amigo
- Posts: 198
- Joined: Tue Aug 10, 2004 7:02 pm
- Location: Wirral, Merseyside and Alcaucin, Spain
Re: Selling Property in Spain
Many thanks Peter and Sid for your replies.
Yes I am aware that the authorities will deduct 3% to cover CGT liability. We will reclaim this as we are selling at a loss. This is the first time in selling many properties (albeit in UK) for a loss. But all is not lost as we have been informed that we can offset the loss in Spain against Capital Gains made in the the UK.
Again many thanks.
Yes I am aware that the authorities will deduct 3% to cover CGT liability. We will reclaim this as we are selling at a loss. This is the first time in selling many properties (albeit in UK) for a loss. But all is not lost as we have been informed that we can offset the loss in Spain against Capital Gains made in the the UK.
Again many thanks.
Who is online
Users browsing this forum: Google [Bot] and 17 guests