How To Buy Property in Spain Safely

Written by Rhiannon Williamson

Buying property abroad is not an undertaking one should embark upon lightly! It is not wise to assume thatrepparttar entire purchase process will followrepparttar 142444 rules we’re used to ‘back home’ and generally speaking there are usually a whole new set of rules and regulations, traditions and traps to learn, understand and watch out for.

Spain is absolutely no exception and has a tangled web of laws and legislation seemingly designed to trip up an unwary real estate buyer. This article examines three key areas that a potential property purchaser should be at least aware of before signing onrepparttar 142445 dotted line for that dream Spanish home.

Firstly there’s a ‘tradition’ in Spain for purchasers to actively but illegally assistrepparttar 142446 vendor in reducing his overall capital gains (or profit) tax liability. Oftenrepparttar 142447 vendor will ask for a far reduced purchase price to be written intorepparttar 142448 purchase contract and forrepparttar 142449 buyer to actually make uprepparttar 142450 difference betweenrepparttar 142451 contract price andrepparttar 142452 actual price in cash.

This has been a tradition in Spain for many years; in theory it doesn’t affectrepparttar 142453 buyer, it certainly doesn’t affectrepparttar 142454 vendor and whatrepparttar 142455 tax authorities don’t know can’t hurt them, right?


This action is highly illegal and Spain’s new socialist government have begun cracking down on money laundering and tax evasion and these concerted efforts are targetingrepparttar 142456 property market in Spain.

Of course many potential buyers reading this will simply assume that if asked to act illegally all they need do is point out thatrepparttar 142457 new crackdown could result in investigation, fines, even a lengthy prison term andrepparttar 142458 vendor, estate agent and solicitor involved inrepparttar 142459 transaction will step back and accept that exact figures are entered intorepparttar 142460 contract and taxation be paid accordingly.

Unfortunatelyrepparttar 142461 reality for those who refuse to act in accordance withrepparttar 142462 vendor’s wishes can be far different torepparttar 142463 above proposed ideal scenario. Quite oftenrepparttar 142464 vendor backs out of a sale if he cannot get his way andrepparttar 142465 buyer loses their dream property in Spain and possibly their deposit as well.

So, what should someone hoping to buy property in Spain do if faced with such a situation? Should they acceptrepparttar 142466 vendor’s demands and hand over a brown paper bag stuffed with 500 Euro notes? If they do thenrepparttar 142467 price they apparently purchaserepparttar 142468 property for will berepparttar 142469 price against which any future profits fromrepparttar 142470 resale ofrepparttar 142471 property will be compared for their capital gains tax purposes. Therefore ifrepparttar 142472 purchaser ever wants to resellrepparttar 142473 property they too will need to insist that their buyer also agrees to having a reduced sum entered intorepparttar 142474 contract otherwise they’ll be liable for allrepparttar 142475 extra capital gains taxation! Someone somewhere alongrepparttar 142476 line is going to lose out just ensure that it’s not you! Even if you have your heart set on a particular home in Spain I would strongly recommend that you do not go ahead and act illegally even if that means you risk losingrepparttar 142477 property.

Think very long and very hard about what you’re being asked to do andrepparttar 142478 potential legal and long term financial consequences rather than your short term thrill at securing that dream home in Spain.

The next point that is worthy of due attention isrepparttar 142479 fact that there are many unregistered and inexperienced estate agents operating in Spain. The fact that anyone can become an estate agent onrepparttar 142480 Costa del Sol for example has led not only to mistakes inrepparttar 142481 purchase process being made, but unscrupulous individuals setting out to exploit foreign buyers.

Hey, Free Agent, Did you eat breakfast today?

Written by Ellen Zucker

And when you finally sat down to eat breakfast, was it morning or ... 3 pm?

Whenrepparttar phone is jangling,repparttar 142272 pace hectic and deadlines looming, do you stop … to eat?

All self-employed people sharerepparttar 142273 title Chief-Cook-and-Bottle-Washer. Which is just another way to say that it is easy to get stretched thin when you are responsible for everything.

In a perfect world, our work would keep us stimulated, payrepparttar 142274 bills, and provide us with a sufficient income to allow a decent quality of life. We would have neither too much nor too little work and it would come in an even flow. Not only that, but our clients would be pleasant and they would pay us on time.

We, in turn, would find it easy to perform our services torepparttar 142275 public with excellence because we would be able to stay in touch withrepparttar 142276 joy that made us choose our line of work inrepparttar 142277 first place.

Butrepparttar 142278 reality is that most of us are lucky if we can get within spitting distance of our perfect world, much less live in it.

While many of us are drawn to freelance living byrepparttar 142279 prospect of freedom from having a boss,repparttar 142280 truth is that we are atrepparttar 142281 beck and call of our clients. And, often, through no fault of our own, our workflow is one of feast or famine.

Cont'd on page 2 ==> © 2005
Terms of Use