Escritura

I said a firm no each time. Like you say the CGT will be a major problem to you if you didn't manage to sell to someone applying the same tactics. Stricter money laundering laws etc have put paid to a lot of the cash buyers of old so you could have a problem convincing someone to buy in that way.

Aside from that it is of course illegal. This was the "normal" way of doing things in the past, particularly the Spaniards selling to the Brits. Estate Agents and some lawyers,  and notaries would tell people that its fine, no worries.

The relevant authorities are supposed to be clamping down on such practises (they are supposed to be clamping down on many tax evasion type things!). When the big EU subsidies that Spain has enjoyed stop they will need to be more strict on these things to ensure that that subsidy is made up for somehow.

My advice would be do it all above board and sleep easy at night!!

We bought from Zapata builder at El Raso, outside Guardamar. We told our agent, Millennium, who were doing our conveyancing in their legal dept (don't get me started on that one, I'll be here till new year !) that we did NOT want to underdeclare & they fobbed us off with "it is YOUR choice & NOT the builders" !!! 

When we were sent the papers detailing monies & cheques we needed to ensure were ready for day at notary we saw that the builder wanted a certain amount in "black money" & a cheque for the rest (We bought for 195,000 euros of which 146,250 euros was declared) We obviously complained but just were told "it's like this here, THIS is the way the builders work". The builder wouldn't complete otherwise & he had lots of our money. We HAD to comply or lose our money & no one is going to do THAT. We were told to bring our contract to the notary & the builder took it from us (we HAD made a copy) & gave us same but with 146,250 euros on, rather than 195,000 euros.

You MAY say we should have had a totally independant solicitor & I fully agree but everyone tends to get sucked in by these smarmy talking agents who love you till they get your signature on that contract then proceed to turn your world upside down. Anyway it wouldn't have done much good in getting the builder to declare fully as we have our own website for El Raso & those who have bought from Zapata all say the same regarding his underdeclaring.He just won't & he ignores you till you give up.

I wish you well.

As of December 1st 2006 there is a new directive for completions at the Notary. First is that the official NIE certificate must be presented and every piece of documentation relating to the sale process of the property is presented. There must be a paper trail for every payment. Under declaration is being eradicated by the authorities and the likelihood is that when you come to sell the property it will be impossible to under declare. The mortgage lenders have also had to tighten up on this too. Proceed with B money at your peril.

Rgds