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ItsSpainNotUK
10-29-2005, 09:20 AM
Hi
Can I give my non-resident's property to a non-resident friend by simply changing the ownership of the property through a solicitor or will this be treated the same as selling. Will this occur the 35% capital gains tax and what about the 5% tax normally withheld by the seller for the government ?.

Regards

John

Expert advisor
11-02-2005, 01:41 PM
The transmission of the ownership in this case can be done by means of what it is called in Spanish "donación" or "gift" in English.
There should be a value given to the property and the Title Deeds will show that the receiver or beneficiary is in agreement to accept the possession of the property given to him.
There are some taxes to be paid by the beneficiary which are paid under a much higher percentage than what it should be paid when there is a normal purchase and sale Title Deeds.
On the other hand, the donor does not pay taxes and no 5% is withheld as he is not making any profit with selling the property as the beneficiary does not pay for the property.

We will be pleased to answer any doubts on this matter at our offices in Torrevieja.