Hello,
Not really sure whether this should be a new topic or a follow-on from the previous 'black money' thread, but here goes...
A friend sold his house in the UK before he came to Spain. The equity has been sitting in his UK account. When he comes to buy a house in Spain (with this equity) he plans to transfer it into his Spanish account for a few days to complete the transaction. Is this classed as taxable income by the Spanish government. Will they expect a slice? Is this black money?
Cheers,
Kelly
Black money?
This is not black money, it is totaly legitimate. If the funds are in the spanish account for a short time there should be no tax to pay. the bank may charge for recieving the money from the UK bank. If the money was left in the account until after december you would have to pay tax on the interest that it earns.
- jpinks
- Andalucia.com Amigo
- Posts: 219
- Joined: Tue Dec 21, 2004 6:10 pm
- Location: El Camacho, Jubrique
- Contact:
Re: Black money?
No -it is not. Your "friend" can transfer the money to a spanish bank account without tax implications. He can then buy a house here and use the money for that. In fact it is a good thing that the money is "imported" as it stops the Spanish tax authorities looking at where the money came from.Kelly4 wrote:...A friend sold his house in the UK before he came to Spain. The equity has been sitting in his UK account. When he comes to buy a house in Spain (with this equity) he plans to transfer it into his Spanish account for a few days to complete the transaction. Is this classed as taxable income by the Spanish government. Will they expect a slice? Is this black money?...
Slainte,
JohnP.
JohnP.
Re: Black money?
However the tax office will certainly be looking at the declared amount on the escritura and comparing it with the amount withdrawn from the bank.jpinks wrote:Kelly4 wrote:quote]No -it is not. Your "friend" can transfer the money to a spanish bank account without tax implications. He can then buy a house here and use the money for that. In fact it is a good thing that the money is "imported" as it stops the Spanish tax authorities looking at where the money came from.
I have met plenty of people who have received big fines for underdeclaration on the purchase price. I am not 100 % sure but think the purchaser not vendor is fined.
-
- Andalucia Guru
- Posts: 16079
- Joined: Sun Oct 24, 2004 10:42 pm
- Location: La Herradura, Costa Tropical, Granada
Re: Black money?
I think you will find that both parties are liable to be fined as clearly they are both party to the underdeclaration.Bongtrees wrote:I am not 100 % sure but think the purchaser not vendor is fined.
Sid
Re: Black money?
You may be right but I can only talk from from my own experience over the past 3 years and I have only met purchasers who have been fined,El Cid wrote:I think you will find that both parties are liable to be fined as clearly they are both party to the underdeclaration.Bongtrees wrote:I am not 100 % sure but think the purchaser not vendor is fined.
Sid
Indeed I actually know 2 people who later were fined and had to pay additional tax despite buying bargain properties where all of the purchase price was declared and even when one of them needed a big reform to bring it up to the standard of other apartments in the block.
Actually both were apartments so might be easier for Hacienda to know current values and unless one has connections there is no way I know of
arguing with them.
Mike
- jpinks
- Andalucia.com Amigo
- Posts: 219
- Joined: Tue Dec 21, 2004 6:10 pm
- Location: El Camacho, Jubrique
- Contact:
I bought a "bargan" some years ago and actually declared the full purchase price on the escritura - much to the annoyance of the seller - but that is another story. The upshot was that I got a "re-valuation" notice and a tax bill on money that had genuinely not changed hands!! I asked the guys in the tax office about appealing - they said I could but would have to produce a lot of professional evidence to back up my appeal. The cost of getting the professional evidence was more than half of the additional tax I was being charged, and the likely outcome would be a 50:50 compromise - so I just paid it. Talk about Catch22 !!!!:(
Slainte,
JohnP.
JohnP.
-
- Andalucia.com Amigo
- Posts: 78
- Joined: Wed Feb 09, 2005 11:46 pm
- Location: Alto Almanzora Valley
underdeclaration, is one of the tools allowing dodgy agents to get away with extortionate commissions. Byer doesnt find out )til much later) what vendor is getting, and vendor has no idea what is really paid, cos its all done in the back room, out of sight and under the table!!
Occasionally the vendor may be in the clear as there may be a contract with the agent stating the asking price, and the agent just adds on what he thinks he can get away with, and nobody is any the wiser till much later!!
Occasionally the vendor may be in the clear as there may be a contract with the agent stating the asking price, and the agent just adds on what he thinks he can get away with, and nobody is any the wiser till much later!!
Who is online
Users browsing this forum: No registered users and 77 guests