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Advice Needed Urgently
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Big Al
Advice Needed Urgently
Hope that someone can help with some advice.
We are currently in the process of purchasing a villa in CVO. We are at the point of exchanging Promissory Contracts and paying the deposit (nonrefundable). We have just found out that the Vendor, the Vendors Estate Agent and our Solicitor are meeting to decide by how much they will under-declare the purchase price of the property. I know in the past this has been common practice, but I thought this was now illegal. Or will it only be illegal post 1.12.03.
Under-declaring the purchase price will save me 6% SISA Tax now, but leave me exposed to 25% Capital Gains Tax at some point in the future. Is it best to declare the true value now?
We are currently in the process of purchasing a villa in CVO. We are at the point of exchanging Promissory Contracts and paying the deposit (nonrefundable). We have just found out that the Vendor, the Vendors Estate Agent and our Solicitor are meeting to decide by how much they will under-declare the purchase price of the property. I know in the past this has been common practice, but I thought this was now illegal. Or will it only be illegal post 1.12.03.
Under-declaring the purchase price will save me 6% SISA Tax now, but leave me exposed to 25% Capital Gains Tax at some point in the future. Is it best to declare the true value now?
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Guest
It is still legal to under declare as it stands at the moment untill January, Biffa really is the best for this and I'm sure he will respond when he has time. Your solictor is the best one to raise the query though. One thing for sure is that your rates for 2004 will be based on the true value. I also think the capital gains is 20% provided it's declared in Portugal should you sell. Interestingly this tax is not due untill about a year after the sell and few (i'm told) pay it. Best wait for Biffa though and I assume you are buying on shore and not off. Anyway, well done on buying and once this farce is out the way..enjoy it. Where is it anyway? Mike
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Big Al
advice needed urgently
Many thanks for the reply Mike. It was very helpful.
The villa we are hoping to purchase is on Vale de Milho, but the purchasing process seems to continually throw up hurdles in our way. I think the most frustrating thing about it is being so remote from the action, and being reliant upon e-mails, faxes and telephones and even then not being able to get hold of who you want. Still lets hope it will all be worth it, as we like CVO very much and have visited often over the past 16 years.
The villa we are hoping to purchase is on Vale de Milho, but the purchasing process seems to continually throw up hurdles in our way. I think the most frustrating thing about it is being so remote from the action, and being reliant upon e-mails, faxes and telephones and even then not being able to get hold of who you want. Still lets hope it will all be worth it, as we like CVO very much and have visited often over the past 16 years.
Hi Big Al
We are in the same position as you at the moment, we are about to compete on an appartment in CVO, and so far have only had telephone calls, and e-mails from our solicitor, no actuall paperwork at all.
I am expecting that after completion, a big package will arrive with lots
of documents in portugese (that I can't read) but will make me feel a bit more secure. Good Luck, and if we both survive we can meet up for a drink one day in CVO to celebrate.
Tricky
We are in the same position as you at the moment, we are about to compete on an appartment in CVO, and so far have only had telephone calls, and e-mails from our solicitor, no actuall paperwork at all.
I am expecting that after completion, a big package will arrive with lots
of documents in portugese (that I can't read) but will make me feel a bit more secure. Good Luck, and if we both survive we can meet up for a drink one day in CVO to celebrate.
Tricky