Selling property in Ecuador

eddyv101

Hi guys,

I'm looking for some advice, my parents live in the UK and own a house in Ecuador which they build from scratch maybe 15 years ago (their plan was to move back in their later years), they are now selling the house for $120k.

The Ecuadorean government charges a 5% tax of sending money abroad, but I don't see a double taxation agreement between UK and Ecuador.

So three questions:

1) Can the 5% tax and any other Ecuador tax be offset for any UK tax liability?

2) Can the amount of CTG be reduced through gifting or another way?

3) Is there any liability to other taxes apart from CGT from selling an overseas property?

I look forward to your replies and thanks in advance.

Regards,

Eddy

xylophone

https://www.gov.uk/tax-sell-property/selling-overseas-property

eddyv101

Thanks xylophone, I did see this before posting the question, it doesn't really go into the granularity of the questions I was asking, hence the post.

00ec25

eddyv101 wrote: »

Thanks xylophone, I did see this before posting the question, it doesn't really go into the granularity of the questions I was asking, hence the post.

nonetheless it provides the framework to answer your questions:

1. There is no UK/Ecuador tax treaty, so no offsetting can be done. Why would you think it could?

2. too late, they are (already) selling so transfers would be viewed as deliberate tax evasion and thus would be ignored

3. Ask Ecuador ....

eddyv101

Hi 00ec25,

Thanks for the reply, I will 'ask Ecuador'

Cook_County

eddyv101 wrote: »

Hi guys,

I'm looking for some advice, my parents live in the UK and own a house in Ecuador which they build from scratch maybe 15 years ago (their plan was to move back in their later years), they are now selling the house for $120k.

The Ecuadorean government charges a 5% tax of sending money abroad, but I don't see a double taxation agreement between UK and Ecuador.

So three questions:

1) Can the 5% tax and any other Ecuador tax be offset for any UK tax liability?

2) Can the amount of CTG be reduced through gifting or another way?

3) Is there any liability to other taxes apart from CGT from selling an overseas property?

I look forward to your replies and thanks in advance.

Regards,

Eddy

From a UK perspective the gain will look larger than in local currency because of the fall in the value of Sterling.

mailmannz

What a surprise that Her Majesties Government feels they have an entitlement to your money in Ecuador! :rotfl:

Still, I guess thats a nice position to be in eh

Regards

Mailman