Search:     Go  
The Spanish Lawyer Online
The Spanish Lawyer Online
+ Reply to Thread
Page 3 of 22 FirstFirst 1234513 ... LastLast
Results 21 to 30 of 211

Thread: Dissolution of Joint Property Ownership in Spain

  1. #21
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Oly,

    Your case would not be a dissolution of joint property ownership as you were not joint owners; your husband was the sole propietor.

    Your husband would have to sell you outright his 50% share on the property. You would pay 7% Transfer tax plus all the associated fees and expenses.

    You can read our article on the matter of taxes to be paid on buying a resale:

    Buying Property in Spain: An Overview - 3rd of April 2000

    The article is almost ten years old now, so quite a few things are outdated, specifically the tax figures mentioned.

    I take the opportunity to offer you our conveyance service should you be interested.

    You can contact us for more details on this legal service. We act nationwide.

    Yours faithfully,
    Raymundo Larraín Nesbitt
    Last edited by Lawbird Lawyer; 07-17-2009 at 03:37 PM.

  2. #22
    Paul
    Guest

    Default Dissolution of Joint Property Ownership in Spain

    Hi

    Me and my sister equally own an appartment in Majorca with no out standing morgage and we are both UK residents. My sister no longer wants to be on the deeds of the appartment and is will to sign full ownership over to me with no payment in exchange. What is the process to take her name off the deeds and what taxes/ fee are applicable. thank you for your assistance

  3. #23
    Barbara
    Guest

    Default Dissolution of Joint Property Ownership in Spain

    Hi, Im separating from my husband and we own a house in Spain but are non residents I wish to keep my half of the house and my ex wishes to sell to my sister and husband. We owe no debt on the house. Could this not be a private exchange of money in England and just pay in Spain for name change on the deeds ?

  4. #24
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Paul,

    Money must be exchanged otherwise it's a gift and you shall be taxed under Gift tax sliding scale which is the same as for Inheritance Tax.

  5. #25
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Barbara,

    His purchasers have to pay in Spain 7% Transfer tax and your ex partner, as a vendor, will have to pay both Capital Gains Tax and Plus valía tax on his 50%.

    Please read our articles on the mater:

    Buying Property from a Private Seller - 15th of March 2000

    Taxes when Selling Spanish Property - 2nd of May 2002

    Buying Property in Spain: An Overview - 3rd of April 2000

    Yours faithfully,

  6. #26
    David
    Guest

    Default Dissolution of Joint Property Ownership in Spain

    My business partner and I own a property jointly in Spain (50/50) in our personal names but with the beneficial ownership in favour of our UK company, which in turn had borrowed the funds from another company to facilitate the purchase. Since the property was purchased in 2003 it is assumed that there has been a negligible change in value plus the original loan is still outstanding and therefore equivalent to the value of the property, hence there is no residual value (equity). It is intended that I sell my shares in the UK company to him (subject to UK CGT) to him and transfer the ownership of the property to him for no money (i.e. because there is no residual value above the outstanding mortgage). Am I correct in my understanding that we can do this through a dissolution of joint ownership with him paying the 1% stamp duty instead of the 7% transfer tax (both plus fees)? Because we have assumed no change in value and therefore no capital gain will I avoid Spanish CGT on my outgoing share in the property? It there anything else we should consider, other than ultimately taking specific legal advice? Thank you

  7. #27
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Sir,

    I don't see why you cannot follow a dissolution of joint property ownership and pay 1% Stamp Duty on the full value of the property. Money will have to be exchanged in Spain for the 50% otherwise it could well be understood this transaction is subject to Gift tax which follows the same sliding scale as IHT.

    Regarding the comments you make on equity left in the property, they are unrelated to CGT and you are confusuing it with IHT mitigation. The outgoing share will be subject to both CGT taxed at 18% and Plus Valía tax.

    Let me know if you need our assistance to make it work.

    Yours faithfully,
    Raymundo Larraín Nesbitt

  8. #28
    Junior Member
    Join Date
    Aug 2009
    Posts
    2

    Default Dissolution of Joint Property Ownership in Spain

    I purchased a property (apartment) on the Costa Blanca for an investment and a holiday home, therefore I am a non resident in spain. I paid in full and all taxes/ bills etc myself and have no mortage. However, when I bought it I placed my partners name on the deeds thinking it was the right thing to do and be an investment to her if in the event anything happended to me. Unfortunately she has MS which has now worsened and now is unable to work and of course she lives alone and has no money. She is worried now that she cannot claim UK benefits (housing and council tax benefits) because her name is on the title deeds as if she owns a property abroad even though she has not paid a penny to any costs.
    I have proof of payments from my UK bank account for the purchace of the property. To put her mind to rest she desperately wants her name off of the title deeds. I thought it would be no problem like the UK but now I am worried its going to be an expensive 7% tax for me(again) or a reasonable 1% with costs.

  9. #29
    Senior Member
    Join Date
    Oct 2008
    Location
    Marbella
    Posts
    1,095

    Default

    Dear Melvyn,

    From your post I understand that the property is solely under the name of your partner. In that case only she is entitled to the sales proceeds regardless of who paid for the property, in other words, you have no rights on this property.

    If you want to buy it outright from her, you are going to have to pay the full costs of an associated conveyance procedure, that is including 7% Transfer tax.

    You cannot follow a dissolution of joint property ownership because you don't even hold 1% of the property.

    I take the opportunity to offer you our conveyance service if you are interested. We act nationwide.

    Yours faithfully,

  10. #30
    Junior Member
    Join Date
    Aug 2009
    Posts
    2

    Default Dissolution of Joint Property Ownership in Spain

    Now you are really worrying me. I paid for the property and BOTH our names are on the title deeds. All she wants is to opt out and have her name removed.

+ Reply to Thread

Bookmarks

Posting Permissions

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