# Property swap



## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

Hi all,

is there anybody on this forum ho has some experience with property swap??

i find it very difficult since many years to sell and the outlook for the future is not much better.......i wish i could swap for a italian property.......i feel it s time for a challenge.....


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## jojo (Sep 20, 2007)

Property swap isnt as easy as it sounds. The only benefits are that you have a buyer and so does your buyer. Apart from that the whole thuing has to be carried out as though you are two seperate individuals. We tried it a while ago and the costs, paperwork, issues, stresses were all the same - even the sale prices couldnt be "reduced" on paper as they needed to be monitored, so taxes were no cheaper...

Jo xxx


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## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

thanks JO for this info.......
.so no advantage at all?

enjoylife


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## jojo (Sep 20, 2007)

enjoylife said:


> thanks JO for this info.......
> .so no advantage at all?
> 
> enjoylife


No, only the knowledge that you both have buyers and a very small, manageable chain. We thought we could sell/buy both properties for £10/10€ for example, hence avoiding all the stamp duty, property taxes, commissions etc, but, sadly it doesnt work like that

Jo xxx


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## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

I think if somebody sells and re invest the money again in spain 
even in a different area there is no property tax to pay....is that right?


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## xabiaxica (Jun 23, 2009)

enjoylife said:


> I think if somebody sells and re invest the money again in spain
> even in a different area there is no property tax to pay....is that right?


I believe so - but as with everything it probably varies regionally

I do know there's a time limit though


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## Beachcomber (May 10, 2009)

If you are a fiscal resident and you purchase another property within two years there is no capital gains tax to pay unless the value of your new purchase is less than the sale value of the old one in which case you have to pay CGT on the difference. 

Other taxes such as ITP/AJD and plus-valía etc are still payable.

In the case of a property swap (permuta) the ownership has to be like for like and both parties have to pay all taxes on realistic taxable values as they would if it was a normal purchase/sale.


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## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

good info, very much appreciated...thanks
but what is ITP and AJD ?


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## Beachcomber (May 10, 2009)

ITP/AJD (Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados) is commonly known as transfer taxes which, on a new property would be IVA (VAT)


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## Guest (Sep 5, 2011)

you might like homeaway.com

we used it in the eeuu, worked great...here in Colombia we get a lot of single men (which we won't rent to)...very few family type requests that we prefer...Spain has a lot more potential for home away rentals...


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## toast (Oct 19, 2007)

That is correct, if you do a house swap is like selling with all its costs, your plusvalia is only exent if you reinvest in a permanent 1st residence(so it was to be more expensive than the initial price you paid + plusvalia), and if you swap at a "reduced " price they will charge you for the "stimated" price of the property they have and their tables.....so no advantage at all sadly!


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## mrypg9 (Apr 26, 2008)

toast said:


> That is correct, if you do a house swap is like selling with all its costs, your plusvalia is only exent if you reinvest in a permanent 1st residence(so it was to be more expensive than the initial price you paid + plusvalia), and if you swap at a "reduced " price they will charge you for the "stimated" price of the property they have and their tables.....so no advantage at all sadly!


It's not a swap, it's a sale and therefore subject to the usual regulations.


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## toast (Oct 19, 2007)

well, indeed there is the regulated figure of "permuta" or Swap or trueque or intercambio...but by all means it would be regulated as a house sale, so no fiscal benefits of any kind.....you just reduce the execution risk of buying the new house once the old one is sold.....but us myypg9 mentions....a swap is a sale...and is taxed and executed as a sale....another different thing is swapping in a private documment the use and not the ownership of the house....but I do not really recomend it, as for the "law" community, etc...you would be still the owner of the original house.....


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## xxxxxxxxxxxxxxxenjoylife (Jul 26, 2011)

excellent infos......... thanks to all of you.......


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## sunflower (Jul 2, 2008)

enjoylife said:


> Hi all,
> 
> is there anybody on this forum ho has some experience with property swap??
> 
> i find it very difficult since many years to sell and the outlook for the future is not much better.......i wish i could swap for a italian property.......i feel it s time for a challenge.....


Property swap? I didn't know there was such a thing! I have two properties in the south of France (combined value around 175000€) and need to exchange them both for a single property in the north (I have work comitments in Brittany now, so I am in a hurry.) 
any ideas where or how to register for this?:clap2:


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## jojo (Sep 20, 2007)

sunflower said:


> Property swap? I didn't know there was such a thing! I have two properties in the south of France (combined value around 175000€) and need to exchange them both for a single property in the north (I have work comitments in Brittany now, so I am in a hurry.)
> any ideas where or how to register for this?:clap2:



If you read all of the posts you'll see that actually a direct swap doesnt really work, all it can possibly do is find you a buyer in a very small chain. Its not a magic solution

Jo xxx


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