Capital Control Issues

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Blighty
Posts: 111
Joined: Tue Nov 01, 2011 11:50 am

Capital Control Issues

Postby Blighty » Tue Oct 25, 2016 10:49 am

The article attached suggests that ongoing capital controls are causing problems.
A British couple have sold their Greek property, and wish to return to the UK to purchase a property due to ill health, but need to follow the capital control rules to gradually move their money. I'll be interested to read some views on this from forum members.
Also, why do they feel they have to return to the UK because of ill health. This suggests that living in Greece etc. is only viable if you have good health ?

Source:
http://www.dailymail.co.uk/money/saving ... me-UK.html

moved 2 crete
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Location: chania

Re: Capital Control Issues

Postby moved 2 crete » Tue Oct 25, 2016 11:51 am

I was advised to move to a better climate for my health 11 years ago by my UK specialist and have thrived here ever since, we did the job properly getting IKA and then AMKA and have used the Chania Hospital specialists and local Doctors ever since so I can not imagine any reasons to move back to UK NHS system unless the Brexit causes us to pay for treatment and operations, there may be personal reasons not stated. other than the Stroke, there are adequate disable equipment arrangements here, it may well be that Zante has not got the facilities that exist here on Crete, but they could maybe move to mainland Greece or to Crete rather than the UK...... :D
Dave H

Kilkis
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Re: Capital Control Issues

Postby Kilkis » Tue Oct 25, 2016 12:17 pm

Good to see the Daily Mail maintaining its usual high standards of accuracy and journalistic excellence:

"When Greece was rocked by an almighty financial earthquake in 2007, the government implemented capital controls on the bank to stop everyone taking out their money all at once and crippling the country."

Greece implemented capital controls in mid 2015 but what's 8 years between friends.

Warwick

Maud
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Location: S.W. England/ S.W. Crete.

Re: Capital Control Issues

Postby Maud » Tue Oct 25, 2016 2:55 pm

This is not an issue of inadequate medical facilities in Greece. I read it as an article about someone who is no longer as mobile as they were and them wanting to move to be near family and friends who can offer some help. Not everyone wants to do this, but for those who do, it must be a worry when ones money is 'locked' in a country when it is needed elsewhere.

The lady in question is not alone in her predicament. It is one which must face many ex-pats in the EU, plus people from elsewhere. Only two weeks ago friends of ours sold a 'summer house' on the Greek mainland. They are in the same position of not being able to bring their funds back to the UK. Fortunately for them they also have a villa on a Greek island, so they will use the money from the sale to fund their villa and car etc.I imagine thier situation is the 'exception to the rule' though, and most people selling a property would want to bring their funds back to their home country.

Sad though it is, In cannot see an exception being made for the lady in this article.........as she is one of many! It is not just a case of £100,000 being removed from a Greek Bank. - No precedent must be set I assume?!!!

scooby
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Location: Agia Nr Chania

Re: Capital Control Issues

Postby scooby » Tue Oct 25, 2016 3:18 pm

It,s a wonder why they didn't use a UK bank to do the transfer of the sale, or is that not possible? if so, job done.
Men in suits will always make you pay.

SatCure
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Location: Apokoronas

Re: Capital Control Issues

Postby SatCure » Tue Oct 25, 2016 3:40 pm

scooby wrote:It,s a wonder why they didn't use a UK bank to do the transfer of the sale, or is that not possible? if so, job done.

Yes, it's possible. Our neighbours did exactly that without a problem.

Maud
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Location: S.W. England/ S.W. Crete.

Re: Capital Control Issues

Postby Maud » Tue Oct 25, 2016 5:28 pm

Is that possible if you are selling to a Greek? Our friends sold to a Greek and the capitol controls issue arose. The Greek could not put his money in to a U.K. account.

TweetTweet
Posts: 235
Joined: Fri Jan 13, 2012 10:35 am

Re: Capital Control Issues

Postby TweetTweet » Tue Oct 25, 2016 5:43 pm

Kilkis wrote:Good to see the Daily Mail maintaining its usual high standards of accuracy and journalistic excellence:

"When Greece was rocked by an almighty financial earthquake in 2007, the government implemented capital controls on the bank to stop everyone taking out their money all at once and crippling the country."

Greece implemented capital controls in mid 2015 but what's 8 years between friends.

Warwick

I do not like the Daly Mail but this is what they said:

"Greece was rocked by an almighty financial earthquake in 2007. Last year, the Government implemented capital controls on the bank to stop everyone taking out their money all at once and crippling the country."

For once, I believe they are accurate on both counts. The *crisis* was set in motion in 2007 as a result of the American sub-prime mortgage scandel. Capital controls were implemented in June 2015.

filippos
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Re: Capital Control Issues

Postby filippos » Tue Oct 25, 2016 6:07 pm

Have you not noticed how often the DM edits articles in response to readers' comments that follow them? I think the DM has given up employing sub-editors (and even editors), preferring to rely on the unpaid efforts of said readers?

Hector
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Re: Capital Control Issues

Postby Hector » Tue Oct 25, 2016 6:13 pm

Am I right in thinking that if you sell your property to anyone other than a Greek person that the money can exchange hands outside of Greece? How would that affect tax? Don't taxes, like capital gains, have to be paid before the sale can be finalised? Ok I understand that capital gains are unlikely to come into it but just imagine they did for the sake of clarifying the point.

Kilkis
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Re: Capital Control Issues

Postby Kilkis » Tue Oct 25, 2016 8:04 pm

TweetTweet wrote:...I do not like the Daly Mail but this is what they said:

"Greece was rocked by an almighty financial earthquake in 2007. Last year, the Government implemented capital controls on the bank to stop everyone taking out their money all at once and crippling the country."...


I am sorry TweeTweet but that is not what they said in the original article. My quote above was a direct copy and paste from the article when I read it at 1:17 pm Greek time. Your quote is what the article says now. Clearly they edited the article after somebody pointed out their error. I stand by my original comment. Sloppy and inaccurate reporting. I agree with Filippos.

Warwick

YoMo2
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Re: Capital Control Issues

Postby YoMo2 » Wed Oct 26, 2016 7:40 am

Hector wrote:Am I right in thinking that if you sell your property to anyone other than a Greek person that the money can exchange hands outside of Greece? How would that affect tax? Don't taxes, like capital gains, have to be paid before the sale can be finalised? Ok I understand that capital gains are unlikely to come into it but just imagine they did for the sake of clarifying the point.


That is correct Hector. Taxes naturally need to be paid before the sale is finalised, but the balance can be paid in the UK if that is what you want. Capital gains tax is not yet charged in Greece. Transfer taxes are the responsibility of the buyer. Unpaid property taxes and council taxes are of course the responsibility of the seller.

Andrew
"It's all in the implementation"

filippos
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Re: Capital Control Issues

Postby filippos » Wed Oct 26, 2016 8:09 am

YoMo2 wrote:
Hector wrote:Am I right in thinking that if you sell your property to anyone other than a Greek person that the money can exchange hands outside of Greece? How would that affect tax? ...........

That is correct Hector. ................. Unpaid property taxes and council taxes are of course the responsibility of the seller.

Which, of course, must be paid before the sale can proceed.

Kilkis
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Re: Capital Control Issues

Postby Kilkis » Wed Oct 26, 2016 9:28 am

YoMo2 wrote:...Capital gains tax is not yet charged in Greece...


Can you provide a link to some official information confirming that, Andrew. According to an email from my accountant on 24/12/2013 capital gains tax on real estate at 15 % was introduced on transfer of ownership of property, and securities, from the beginning of 2014. The capital gains tax is withheld by the Notary Public who draws up the transfer of ownership contract. There is an exemption for gains up to €25,000 provided you have owned the property for at least 5 years and you have made no other transfers during that period. The sale price is deflated by a factor depending on how long you have owned the property down to x 0.61 for over 25 years. The detailed numbers may have changed in more recent revisions of the tax code, for example Global Property Guide claims it is 20 % and doesn't mention any exemptions or reductions, but I am not aware that it has been withdrawn. Deloitte still quote it at 15 %. They have some useful documents here

Warwick

Mixos
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Location: North East Crete or S.W.England

Re: Capital Control Issues

Postby Mixos » Wed Oct 26, 2016 9:58 am

... But surely most people selling property today will be taking a huge hit on the price they paid for it, therefore there will have been no gain, so no tax to pay? There might be various other sales/transaction taxes I suppose, but if you make a loss and no capital gain, there can be no "capital gains" tax. I know of one person in a neighbouring village who made a loss of over 50 percent on a recent sale and all the transactions were done via UK banks, although I don't know the details of any taxes paid.


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