Search:     Go  
The Spanish Lawyer Online
The Spanish Lawyer Online
Results 1 to 1 of 1

Thread: Capital Gains Tax / No paperwork provided on property sold in 2011 - Any suggestions

Threaded View

  1. #1
    Junior Member
    Join Date
    Apr 2012
    Posts
    10

    Default Capital Gains Tax / No paperwork provided on property sold in 2011 - Any suggestions

    I am trying to assist in sorting out some affairs and came across this forum. I am hoping some help can be provided.

    The scenario is as follows;

    A property in Spain, within the Murcia Region, was purchased by a non resident in June 1986.

    The Contrato de Compra-Venta (for which copy exists) details a purchase price for the property of 4,900,000 Pesetas = 29,448 Euros

    The property (we are led to believe) was sold for 150,000 Euros in March 2011.

    Unfortunately, despite numerous requests, no official paperwork in relation to the sale has been provided by the Abogado who was dealing with the sale.

    The Abogado, as per the Abogado's company request, was given power of Attorney in November 2010 after a verbal offer for the property concerned had been accepted by the owners in October 2010.

    A UK Tax Return is now over 2 months overdue.

    Questions

    (1) What would the Spanish Capital Gains Tax liability be for a non resident who purchase a property in 1986 for 29,488 Euros and then sells it for 150,000 Euros in March 2011?
    (2) What official paperwork should be given by the Abogado dealing with a sale of a property when the sale has been completed - Breakdown / itemisation of costs?
    (3) What official documents should be provided by an Abogado when a property sale is completed in Spain?
    (4) We understand there may have been an option to purchase deed in relation to a sum of 10,000 Euros. If this was the case should the selling price and subsequent Capital Gains Tax liability be based on a selling price of 160,000 Euros?
    (5) How can official documents be obtained from public registers for Deeds of Sale, Deeds for Options to purchase, Tax forms submitted to the Spanish Tax Authorities for Capital Gains Tax payments and Local Taxes etc?
    (6) Will the property transaction be traceable against the personal details of the previous owners e.g. names / NIE numbers?


    A further issue is post sale a signed written request was made to the Abogado to transfer funds from a Spanish bank account to a nominated UK bank account. The day the signed instructions were received in Spain the funds were taken from the Spanish bank account and transferred, by an electronic transfer, to the Company bank account of the Abogado who was dealing with the property sale with power of attorney. The written instructions were for the funds to be transferred to a specified UK bank account and, as yet, the money has not arrived in the UK and a number of months have passed.

    What options would be available to get the money into a UK account?

    The Abogado we understand is a regulated Abogado under an Illustre Colegio de Abogados.

    Would it be possible to find an Abogado's professional indemnity insurance details in order to make a claim against his insuranced for professional negligence?

    Edit addition - We have been advised, today, that it is a standard practice in Spain not to issue any authorised /signed / dated breakdown of costs relating to a sale of a property on Abogado company letter headed paper even when those breakdown of costs have been audited by an accountant. Would this be correct?
    Last edited by soldin2011; 04-02-2012 at 08:02 PM. Reason: Standard practice for an Abogado / lawyer's firm???

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •