Is it possible to sell a house for a nominal value?

In the real estate sector, the possibility of selling a property for a merely symbolic price raises legal and tax concerns. From Lloret de Mar Real Estate, we explore this topic to provide clarity to our clients on sales practices in the housing, property, and real estate market.

The Reality of Sales at a Symbolic Price

Selling real estate for a symbolic price means assigning it a sale value significantly lower than its actual market value. The motivations behind this decision can vary, from the desire to help friends or family to the need to liquidate the property quickly.

Legality of Selling at a Nominal Price

The legality of selling a home for a symbolic price is a crucial aspect to consider. In Spain, this practice faces specific legal restrictions due to potential tax evasion implications. According to Law 58/2003, of December 17, General Tax Law, sales made at a value much below the market are considered a serious infraction, and can be classified as a crime against the Public Treasury.

Tax Implications and Risks

Opting for a sale at a nominal price does not exempt from tax consequences. Real estate transactions carried out below the cadastral value of the property can trigger economic sanctions and increase scrutiny by tax authorities. Tax evasion through this method can result in significant fines and inclusion in registers specialized in economic and tax crimes.

Strategies for Setting Sale Prices

For homeowners considering selling their property, it is essential to set a sale price that reflects the market value, taking into account both the seller’s interest and legal and tax obligations. Adopting a transparent and lawful approach not only ensures a successful transaction but also protects against possible legal repercussions.

At La Casa – Das Haus, we understand the importance of handling real estate sales with the utmost integrity and professionalism. We offer expert advice to ensure that the sale of your property complies with all legal and tax regulations, maximizing the profit while staying within the legal framework.