SELLING YOUR HOUSE. A tip!

[Carmen Torrecillas]

Hello,
please send us an email to the following address: ctrsolicitors@gmail.com
and we will reply inmediately to all your questions in private.

Best Regards,
Carmen

[Tetley]

OK
Let's say that there are genuine documents showing a purchase price of 160k, and when sold, again playing totally by the book, with no plastic bags etc (either initially at purchase, or at sale point), the sale price is 100K, surely there will not be CGT to pay?

If your house is IBI registered with a castrol value and you sell well under the value,example Arboleas villa

castrol value approx 65k x tax coefficent of 2.6 approx gives a house value of 169k ball park so if you sell at 100k,they may say you have sold undervalue and want there extra taxes from the buyer and the seller.

best have a word with Amanda at AOL  as she is doing this stuff all day and will know the score.

[telcaz]

I sold my house in May of this year for 120,000 euros, i paid 157,000 euros for it in September 2004, at the Noteria the buyers Solicitor kept back 3,100 euros for any unpaid bills, on Thursday we went to her office to ask how much we had left out of the 3,100 euros, and was told just over 600 euros, the rest went on Electricity, and water, and various tax's, we had made the mistake of not having the pool added to the  escuitura, which we had put in two years after we first bought the house                                     
                                                                                                                         Terry.

[Karen4]

There shouldn't be!

[unclebob]

OK
Let's say that there are genuine documents showing a purchase price of 160k, and when sold, again playing totally by the book, with no plastic bags etc (either initially at purchase, or at sale point), the sale price is 100K, surely there will not be CGT to pay?

[Karen4]

I thought there was something about buying another house within 2 years or something, which means you don't get stung for an extra 3% retention of the sale price? Who knows? I swear they make it up as they go along!

[ColinC]

I believe that this tax does not apply if you are over 65 years old and a resident. Am I right? or am I talking about another tax?

I hope so I am 65 this year! But Jill isn't so do both parties whose names are on the deeds need to be over 65?

[Benjamin Franklin]

I believe that this tax does not apply if you are over 65 years old and a resident. Am I right? or am I talking about another tax?

[Karen4]

If I paid 130,000, 13 years ago and sold it today for 50,000, would I have to pay anything? Or based on my loss would the government pay me?

I should think the government would make up a figure that they think you REALLY sold for, and make it more than you paid, and tax you on your imaginary profit, so you would be paying tax on an imaginary sum of money which simply doesn't exist.

[ColinC]

If I paid 130,000, 13 years ago and sold it today for 50,000, would I have to pay anything? Or based on my loss would the government pay me?

[Tetley]

Please ask Cindy and Dave to contact us at ctrsolicitors@gmail.com.

They dont exist, the Question posed is  for,,calculation of sale taxation example, for forum members.

:tiphat:

[Carmen Torrecillas]

Please ask Cindy and Dave to contact us at ctrsolicitors@gmail.com.

[Tetley]

CT

what would be the tax on this please ,as a guide to keep the troops in the loop

Cindy & Dave by a villa & 4000m2 land  in 1999 for 35k  ( all  on the offical papers )

they spend 15k on it over 16 years and have kept all the invoices.

they are not SP tax residents as its a holiday home

but sell in June 2016  for 225k  ( full sale  amount on the offical papers )

also is there any taper allowance here in the capital gain ?

thanks

:tiphat:

[Carmen Torrecillas]

If it says €100k on your deeds, according to the tax authorities €100k is what you paid.  When you buy a house, make sure that what you pay is what is on the deeds.

[Tetley]

Apologies Carmen, but surely if you paid 150 for something and got 130 when selling it you must have made a loss of 20, it must be immaterial to what you have declared, other than you would save on the tax payable or am I missing something here. :wave:

If on the sale contract you paid 150k and everything is lined up at 150k and you sell for 130k,then yes you have made  a 20k loss ,so no gain.


if you singned a knocked up photocopy saying the house all in was 150k,but we  can reduce yer transfer tax to help yer.... if you pay 100k bank cheque,and 50k in cash in a merc poly bag giving the same total of 150k but only 100k on the offical stuff,then in effect the home only cost 100k, so if you sell it later for say 130k you have on paper made a gain of 30k  even tho in the real world you have lost 20k

:tiphat:

[freddie]

Apologies Carmen, but surely if you paid 150 for something and got 130 when selling it you must have made a loss of 20, it must be immaterial to what you have declared, other than you would save on the tax payable or am I missing something here. :wave:

[Carmen Torrecillas]

Exactly Amanda!

For example: If you paid €150k for your house but only put €100k on your deeds, if you later sell it for €130k you will have made a €30k profit.

[Amanda Oakley]

Invoices relatig to the property, can be used to offset posible CGT, obviously if any of us are lucky enough to sell for a profit....
Beware if you purchased and "under" declared in your Deeds

I will happily advise as needed at no cost, as I am sure CTR will
Regards

[Karen4]

I'm not sure what the point is anyway, as, no matter what you get for your house, or what you buy it for, Spain will decide it was undersold or underpaid and will tax you on an imaginary amount of its choosing.

[ColinC]

Pity I didn't know that 13 years ago..

[Carmen Torrecillas]

PLANNING TO SELL YOUR HOUSE ONE DAY?

TIP: From the day you buy it, keep invoices of all related expenses for extensions, reforms, maintenance, notary fees etc.