Capital gains tax
As you have seen above, the Spanish Treasury makes the purchaser responsible for the payment of the 5% retainer of the purchase price is towards any Capital Gains tax generated by the vendor with the sale.

For example, if the vendor’s original Title Deed shows that he purchased the property at €36.000, and your Title Deed is drawn up to show that you paid €60.000, the vendor will show a profit of €24.000 which is taxable at 35%.

For this reason, you may face a situation where the vendor asks for part of the sales price to be declared, for example as cost of furniture. It is important that you consult with your solicitor to determine the safe value to be established in the Title Deed.