Kilkis wrote:When I bought the land the agent drew the money I had transferred in cash from his bank account. The contract was read out in Greek by the Notary and translated into English by my lawyer. Present were my late wife and I, the seller, the seller's lawyer, my lawyer, the agent, the Notary and a random priest who wandered in and started going through papers on the Notary's desk. Once the seller, my late wife and I had signed the contract the agent and the seller went into another room where the money changed hands. All very strange.
Kilkis wrote:The problem Andrew is that you and I live in the real world, where all sorts of financial transactions are possible, but the tax man lives in an imaginary world where the tax authority decides what is and isn't an allowed transaction.
The buyer has bought a property in Greece. As far as the tax man is concerned the money used for that purchase must exist in Greece. They do not acknowledge the possibility of a foreign buyer and a foreign seller exchanging funds outside Greece. Where did the money come from? If the buyer cannot prove that he/she brought it into Greece then he/she must have earned it in Greece. If you earn income in Greece you must pay tax on it even if you do not spend a single day living in Greece. That is life in the imaginary life of the Greek tax authority. IT doesn't matter how stupid it is they make the rules.
YoMo2 wrote:...Do you think the buyer would be covered if he sends the funds direct to the seller's account? The seller would need this in order to be able to transfer the funds back out of the country.
Kilkis wrote:My understanding is NO, unless the tax rules have changed. For the buyer to prove he/she has brought money into the country the money has to be transferred to the buyer's account. If he transfers it directly to the seller's account then, as far as the tax man is concerned, the seller has brought it into the country. They don't take into account documents from banks outside Greece, proving where the money has come from, only documents from Greek banks proving where it arrived. I am not an accountant or a lawyer but that is what I was told.
Kilkis wrote:Joseph Heller was a very profound philosopher?
I'm not sure the documentation does show where it came from, simply that it came into your Greek bank account from abroad. I am sure the bank has a record but it might not be helpful. Suppose, for example, you used a company like Currency Fair to move the money. Typically the bank record would show that it came from that company's account not your account.
YoMo2 wrote:...Philosophy is not my strong suit, as I'm sure you've noticed. Over my head that one...
filippos wrote:I think you can use CF for a transfer without a currency exchange.YoMo2 wrote:Fair point about Currency Fair. Although most of the foreign buyers wouldn't be using CF as they would already have euros.
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