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José M.
José M., Attorney
Category: Spain Law
Satisfied Customers: 6080
Experience:  Spanish Attorney
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This is in regard to property swapping; one in Spain valued

Resolved Question:

This is in regard to property swapping; one in Spain valued at €750 000 ( owned outright)
and another in the UK valued at £390 000 ( still with a mortgage. Owing 270 000 still).
The questions are;
Can a property swap happen?
How does the process work?
How does the process work if the owner is willing to devaluate her property
to 390 and do a like for like swap?
What are the total costs involved for both parties?
How long does the process take?
Is buying a property in Spain a good financial move?
Submitted: 2 years ago.
Category: Spain Law
Expert:  José M. replied 2 years ago.
José M. :

Hi there

José M. :

José M spanish solicitor

José M. :

According to law the procedure is pefectly legal, we could study about the expenses, procedures, and requiermets

José M. :

According to the facts, is it a very strange deal to become real

José M. :

The taxes due to pay are the same like two sold out operations, deals, so the expenses will be very high

José M. :

If you want to deal with the mortage holder and offer the deal, go ahead, but I am sure they will not accept unleess you pay in advanced a big money account and in all cases if they reject the deal you could not force them at all

José M. :

Thank you for asking if you need more help

José M. :

Thank you

Customer:

Thank you for your reply but I found it very hard to understand.

Customer:

Please can you explain the points in more detail

José M. :

Yes, for sure

José M. :

I mean that accoording to the law is possible

José M. :

But, is nothing you could do by yourself and force the other part

José M. :

The other part have to agree

Customer:

They do agree.

José M. :

The taxes of the two operations are very hight

Customer:

She has a big property, he husband is sick and with the recession she cannot sell it

José M. :

Perfect

Customer:

she want to return to the UK

Customer:

is it legal to sell a million property for less?

José M. :

If both parts agree with the change, the main problem is who is the one who will pay taxes and expenses

Customer:

I don't know

Customer:

what is the Spanish law

José M. :

Spanish law says that the seller will pay... personal taxes for the profit, difference between bought prce and sold out prive ( Plusvalia) at the spanish tax agency and taxes in the city hall

José M. :

The buyer have to pay, taxes for the transmission in the Comunidad Autónoma, register expenses and notario

Customer:

what value? the value she is selling it at or the value it is worth?

José M. :

The value due to be considered is not the selling price, is a tax price fixed for the tax office

Customer:

How can she make a profit is she is selling it for less?

Customer:

So if I buy it at 390 what do I pay?

José M. :

They really do not care, they tell you a selling price and if you pay for less you will be sure to be fined

José M. :

Once fines you could even win an appeal but,,,

José M. :

So, taking tax price is always recomended

Customer:

Is the tax price the amount that is registered in the city hall?

José M. :

Not really, is a price given for the tax office of the comunidad autonoma

José M. :

Is there where you shoukld ask with the catastral number

Customer:

Okay thank you.So if I buy it at 390 what do I pay?

Customer:

I mean the percentage of costs

José M. :

There is no way I could ask you because I have no way to know the tax price

José M. :

And all the taxes are fixed by this data which I could noy reach at all

José M. :

So I can no answer you how much do you have to pay

Customer:

So as a foreign buyer I need to find out the tax price. yes?

José M. :

Is impossible to know

Customer:

Then where do I find out what taxes I need to pay?

Customer:

at the castale?

José M. :

Yes, you could do that or even taking the catastral number ask directly at the tax office

Customer:

In your opinion is this a good financial move to buy in spain right now?

José M. :

You could contract a lawyer or even a notario to let you know taxes and expenses

José M. :

Now in Spain to buy you have to be very clever, just a sark, because market is not moving at all and you could be easily scamed

José M. :

Propietyes sold in 2008 and mortaged then in 1 million euros are now on sold for 300.000 euros

José M. :

So, if you are not sure the real value of the propiety now, just forget it

Customer:

Thank you very much.

José M. :

Thank you

José M. :

Please do not forget to rate positively the service

José M. :

have a good day

Customer:

Thank you I will

José M. :

Thank you for that

José M. and other Spain Law Specialists are ready to help you