31 Mar 2010 12:00 AM:
We are thinking of buying in Spain and wondered if anyone can offer any advice on the following property tax issue.
In the UK it is quite normal when buying a fully furnished property to exclude these items from the sale (taxable) value of the transaction and purchase them separately, tax free. HMRC publish some guidance around the appropriate levels which you use to prevent abuse of the system.
As far as we can tell a similar transaction which was "reasonable" should be legal in Spain. We were wondering if similar guidance from the tax authorities exists and whether anyone has experience of this type of sale.
We should stress the idea is not to buy a house for 1 Euro and the furniture for 100,000 Euro avoiding all taxes but to use the system to minimise the taxes payable by deducting an appropriate value for the fixtures and fittings which are not part of the property but are included in the sale.
Thank you.
Thread:
Fixtures and Fittings - Can They Be Excluded From The Sale Price To Reduce Tax
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