Dissolution of joint ownership of property

[MarkW]

Does any-one know whether this type of sale is still valid?
My wife and I wish to sell our share of our house in Moraira- Valencia/ Alicante region, which is currently jointly owned with my brother and his wife, to my brother.
We have had the property for 11 years; its value is about the same as it was when we originally purchased- 180,000 euros
We are happy with the price etc. The price of the Plus Valia Tax appears to be about 10% for our region, plus the 3%V holding for Capital Gains- of which there isn't any!
We have been quoted 1,200 to arrange this by our fiscal representative.
This means that, on our 90,000 share, we will be paying out over 12,000 euros, just to remove two names from the deeds.
There must be a better way surely- HELP
Kind regards
Mark

[Patricia]

Hello MarkW,

The transaction you will be doing is not a dissolution of jointly owned property, but a sale of shares, that is taxed in the same way as an ordinary sale. Having said this, this is the applicable Tax and costs the transaction entails:

• Transfer Tax ( ITP ) 10% of the share being transferred: 9,000 Euros
• Plusvalia: TBC with the Moraira Town Hall
• 3% retention: 2,700 Euros
• Notary costs: TBC
• Land Registry: TBC

If it had been a dissolution of jointly owned property, the ITP would be 1.5%. I believe you got confused between transfer Tax and Plusvalia.

If you need further assistance, please do not hesitate to drop us an email.

Regards,

[MarkW]

Hello MarkW,

The transaction you will be doing is not a dissolution of jointly owned property, but a sale of shares, that is taxed in the same way as an ordinary sale. Having said this, this is the applicable Tax and costs the transaction entails:

• Transfer Tax ( ITP ) 10% of the share being transferred: 9,000 Euros
• Plusvalia: TBC with the Moraira Town Hall
• 3% retention: 2,700 Euros
• Notary costs: TBC
• Land Registry: TBC

If it had been a dissolution of jointly owned property, the ITP would be 1.5%. I believe you got confused between transfer Tax and Plusvalia.

If you need further assistance, please do not hesitate to drop us an email.

Regards,

Hi Patricia,
Thank you for your reply- I really appreciate it.
May i ask you whether the ITP is paid by the seller or the buyer, or jointly split?
Secondly, does this mean that the 'Dissolution of Joint Ownership of Property' is not applicable to us?

So, please is there another option available to us- maybe in UK
or, are we stuck with the 12,000+ fees?
Kind regards
Mark

[MarkW]

Hello MarkW,

The transaction you will be doing is not a dissolution of jointly owned property, but a sale of shares, that is taxed in the same way as an ordinary sale. Having said this, this is the applicable Tax and costs the transaction entails:

• Transfer Tax ( ITP ) 10% of the share being transferred: 9,000 Euros
• Plusvalia: TBC with the Moraira Town Hall
• 3% retention: 2,700 Euros
• Notary costs: TBC
• Land Registry: TBC

If it had been a dissolution of jointly owned property, the ITP would be 1.5%. I believe you got confused between transfer Tax and Plusvalia.

If you need further assistance, please do not hesitate to drop us an email.

Regards,

Hi Patricia,
Thank you for your reply- I really appreciate it.
May i ask you whether the ITP is paid by the seller or the buyer, or jointly split?
Secondly, does this mean that the 'Dissolution of Joint Ownership of Property' is not applicable to us?

So, please is there another option available to us- maybe in UK
or, are we stuck with the 12,000+ fees?
Kind regards
Mark

[Patricia]

Hello MarkW,

The transfer Tax is paid by the buyer.

A dissolution is not applicable here as the property is still owned by more than one person. The dissolution takes place when a joint property is totally dissolved; that is, only one person keeps ownership.

Regards,

[mles]

Hi,

My husband, I think is in the same boat. He bought an apartment as a joint owner with his brother and his wife, about 14 years ago. My husband paid half and they paid half. They now want to buy his half. They are willing to give him €40,000 for the share. If the property is in the 3 of their names, does that mean that he'll have to pay. He is not gaining anything. It cost him €40,000 when he bought it.

Transfer Tax - 10% of €40,000 , i.e. €4,000
Plus Valia tax - Anyone any idea?????
3% retention
Notary Costs - Anyone any idea of costs and who should pay?
Land Registry costs - Anyone any idea of costs and who should pay?

Thanks for all information

[M30MCA]

I am in a similar situation but I want to enforce a dissolution of joint ownership with a once friend, who refuses to sell and has no way of buying my half. I know this is costly and we face to loose everything but I want out of having any association with her anymore....
What are the costs and how long does it take to enforce.