Selling a house for a symbolic price may seem like a tempting option to get quick money or help friends or family, but it is important to consider the legal and tax implications that this entails. In Spain, selling a property for a much lower value than its market value is considered a crime against the Public Treasury and can result in high fines.
It is important to understand the consequences of selling a house for a symbolic price. For example, if the sale price is less than 10% of the real value of the property, it is considered a minor offense and could result in a fine ranging from €1,000 to €10,000. If the price is less than 5% of the real value, it is considered a serious offense and can result in a fine ranging from €20,000 to €100,000, and even imprisonment for six months to two years.
These sanctions are designed to combat money laundering and tax evasion because selling a house for a symbolic price may indicate an illicit origin or an intention to avoid tax payments.
On the other hand, it is completely legal to sell a house for more than its cadastral value. However, this can have tax implications, such as the payment of municipal capital gains or income tax (IRPF). It is important to consider that the cadastral value should not exceed the market value, as this could result in excessive tax payments.
To set the selling price of a house properly, it is necessary to analyze the real estate market in the area, consider the actual condition of the property, and understand the profile of potential buyers. It is important to find a balance that is attractive to potential buyers without setting a price too high or too low.
In summary, selling a house for a symbolic price can have serious legal and tax consequences. It is essential to set an appropriate price that reflects the real value of the property and complies with current regulations.