[Gareth Douglas]

Hi everyone. My parents are selling their property in Guardamar. My wife and I plan to purchase the property using savings. We will not require to take a Spanish mortgage although we will need a small UK loan to raise the funds.
My question is, if my parents sign the property over to us what taxes do we incur? Obviously we will do everything above board but would like to hear anyones experiences of doing similar.
Thanks in Advance

 

[kaipa]

If you are actually purchasing then the procedure would be like a normal purchase and you would need a lawyer to arrange everything for a notary to proceed. The price would need to reflect the market value as reducing the price would be seen as a donation and it could become complicated. You will obviously need to pay for sevices such as legal fees registration, notary and then various taxes so that would probably be around 10 % of the agreed price. I should also imagine that you would need to make the payment in the presence of a notary despite it being your parents ( in fact I imagine the notary will be quite strict about everything once they know that both parties are close family). All in all though it isnt too complicated unless you were purchasing at below market value rate.

 

[Gareth Douglas]

Is it 10% for both the seller and buyer?

 

[snikpoh]

Is it 10% for both the seller and buyer?

It's 10-15% for the buyer (tax, charges etc.)

 

[kaipa]

Is it 10% for both the seller and buyer?

No. That is an approximate for the buyer normally the seller used to pay a plusvalia but that has now gone and there is another tax rating now so I'm not sure exactly what the sellers costs would be. I'm sure someone will provide the answer though.

 

[timwip]

The seller would need to pay capital gains tax (plusvalia) . Plusvalia still exists, there is just a new way to calculate it.

The buyer would need to pay Inpuesto de Transmissiones Patrimoniales (ITP) which varies by autonomous community, notary fees, etc. 10% is a good rule of thumb for all these fees. I recently bought a rural property in Asturias and it totaled to 9.38%.

 

[Gareth Douglas]

Thanks folks. Heading back over in August to sort things with lawyer.

 

[UKMS]

Hi everyone. My parents are selling their property in Guardamar. My wife and I plan to purchase the property using savings. We will not require to take a Spanish mortgage although we will need a small UK loan to raise the funds.
My question is, if my parents sign the property over to us what taxes do we incur? Obviously we will do everything above board but would like to hear anyones experiences of doing similar.
Thanks in Advance

As has been mentioned it will be a straightforward purchase as if you were buying from anyone else. The only thing to consider is .... if your parents are taking the money back to the UK and you have the funds in the UK consider agreeing the price in sterling to save the hassle of exchanging 2 ways. The only part you will need to do in Euros is the taxes, fees etc. Im just about to do the same buying a property from a friend who has moved back to the UK. You can pay at the notary with a sterling draft.