Can I buy my Spanish property in sterling?

 

 

 

 

 

This week a client who lives in the UK asked me if he can pay in sterling the purchase price of a house he is buying in Spain. The truth is that this is not an impediment. On the day of the signature of the purchase deed, the Notary will request evidence that the payment has been made i.e. a copy of the cheque. The purchase deed will also reflect the fact that the price has been paid in sterling and will show its equivalent amount in euros, which at the end of the day will be the one used for tax purposes and for the calculation of the transfer tax.

This is a scenario that is more and more often these days. Many Brits have bought properties in Spain and they are now willing to sell them. At the same time, other Brits who are currently cash privileged are still interested in buying in Spain and very often the transaction involves UK nationals on both sides. In this type of transactions, the parties might be interested in securing the deal in sterling in order to avoid currency fluctuations so this is something that I am seeing with enough frequency.

Food for thought if you are planning to buy in Spain and do not need a mortgage.

 

Photograph by Yusputra/dreamstime.com

3 thoughts on “Can I buy my Spanish property in sterling?

  1. we are in the process of buying a property in alcadeisa spain, and the seller requires us to pay 325000 sterling. We understand this has to paid prior to attending the notary. Please could you kindly advise what is the normal procedure for providing security between paying the seller and attending the notaries office.i.e what protection do we have against the seller running off with the money
    We greatly appreicate your help with this matter

  2. Dear Allison,
    You should not pay the 325,000 before the signature of the Notary as this would prove very risky. I would recommend you to choose between the following:

    1. Hand a UK Banker’s draft to the seller at the Notary’s office.

    2. Deposit the 325,000 with an escrow account with a UK solicitor. The solicitor would give an undertaking that he will release the funds and pay these to the seller as soon as the deed is signed. It has to be a UK solicitor because of the way undertakings work in this country. Basically, if a UK solictor breaches an undertaking he will be personally liable in the UK so this is a guarantee for the seller.

    Regards

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