Payment in Sterling for Spanish Property?

seven-day-weekend

It looks like there's a chance we may have sold our Spanish house. It has no mortgage. The prospective buyers are British.

Is it possible to be paid in Sterling into a British Bank Account? ? Or at least some of it in Sterling?

Would there be any problems with this if it is possible? (Tax etc).

Thanks.

jjlandlord

I guess that this would depends on Spanish Law.

One possibility is that as long as contracts, etc. are in Euro, actual payment could take place in Pounds. That's for your Spanish solicitor, or whomever handle the sale's legalities, to tell you.

G_M

Can't see why you shouldn't agree a price in whatever currency you both prefer.

As for tax, again I don't see how the payment currency makes a difference. Yes, there may be Capital Gains Tax. In the UK or Spain, depending where you are domiciled for tax purposes, and depending on Spanish tax law. But that's not o do with the currency I wouldn't thinl.

jamie11

Are you asking this because you want to avoid paying the Spanish taxes? You know the money does not pass until you are actually in the notaries office with the buyers. It's the notaries job to ensure that all withholdings are carried out so I think they will have a dim view of what you may be thinking. I'm in Valencia and I do know what I'm talking about.

If there is going to be any 'black' money involved though I suppose that could be in sterling.

seven-day-weekend

Not to avoid taxes, - it is to try to avoid bank charges and benefit from the exchange rate.

No black money at all We would not subscribe to this illegal but very common practice.

EDITED TO ADD: I have found out from an expat forum that this is indeed possible - the buyer has to produce proof to the notary that the money from his UK bank is being transferred to the vendor's UK bank - a bankers' draft seems the way to go. Taxes on the full amount are then paid in Euros to the Spanish authorities.

jamie11

Fair enough, I'll have a look at this when my turn comes.