Paphos Life

Just wondering have any members sold a Cypriot property, and been paid in the UK with sterling, what was the legal situation regards transfer/registering the sale etc etc..many thanks.

Yes, we just sold our Cyprus property on 14th September to a UK buyer with payment made in Sterling to their Cyprus solicitor. Our solicitor did all the necessary legal stuff and will transfer the money direct from their client bank account into our UK account next week. Ask your solicitor if they offer this method of payment.

Just a thought, WHL. A spooky one at that... But given all the EU money laundering rules now in place, how do we know our UK bank is not acting on a statutory mandate to report to HMG (and Hector @ HMRC) unusually large sums of money being moved into your UK account, without your bank even notifying you?

Be very wary of brown envelopes from Hector, wanting to know your life history, and snapping at your ankles like a rottweiller wanting CGT!

PaphosAL wrote: ↑Wed Sep 20, 2017 11:07 pm Just a thought, WHL. A spooky one at that... But given all the EU money laundering rules now in place, how do we know our UK bank is not acting on a statutory mandate to report to HMG (and Hector @ HMRC) unusually large sums of money being moved into your UK account, without your bank even notifying you?

Be very wary of brown envelopes from Hector, wanting to know your life history, and snapping at your ankles like a rottweiller wanting CGT!

I always thought that they had to report large sums, I can't remember the amount,as a matter of course!

Just tread carefully, m8. This might apply only to UK accounts into which State Pension, Attendance Allowance, Pension Guarantee Credit and suchlike are being paid into.

It's just a shiver going up and down my spine. If any of the above apply to you (in that same UK account of yours) - move it fast!

PaphosAL wrote: ↑Wed Sep 20, 2017 11:07 pm Just a thought, WHL. A spooky one at that... But given all the EU money laundering rules now in place, how do we know our UK bank is not acting on a statutory mandate to report to HMG (and Hector @ HMRC) unusually large sums of money being moved into your UK account, without your bank even notifying you?

Be very wary of brown envelopes from Hector, wanting to know your life history, and snapping at your ankles like a rottweiller wanting CGT!

If you are doing everything properly and legally then why would you be worried ?

If you are not doing it all legally and properly then as far as I am concerned - Tough - if you get found out then that is your problem!

Just be beware of the exchange rates, I believe that an exchange rate should be mutually agreed upon.

Uncle D wrote: ↑Thu Sep 21, 2017 9:21 am Just be beware of the exchange rates, I believe that an exchange rate should be mutually agreed upon.

Last time I looked the exchange rate from sterling to sterling was quite stable!

J B wrote: ↑Thu Sep 21, 2017 9:55 am

Uncle D wrote: ↑Thu Sep 21, 2017 9:21 am Just be beware of the exchange rates, I believe that an exchange rate should be mutually agreed upon.

Last time I looked the exchange rate from sterling to sterling was quite stable!

WHL wrote: ↑Thu Sep 21, 2017 10:33 am

J B wrote: ↑Thu Sep 21, 2017 9:55 am

Uncle D wrote: ↑Thu Sep 21, 2017 9:21 am Just be beware of the exchange rates, I believe that an exchange rate should be mutually agreed upon.

Last time I looked the exchange rate from sterling to sterling was quite stable!

I am probably trying to teach grandma to suck eggs.
But €200k = £176.5k today, within a 6 week conveyancy period it could end up being €200k = £160k.
Now that isn't funny.

But Why would it be changed into euros, it is going into a Sterling account?

Usually for Contract of Sale purposes, a Euro figure is quoted, even if payment is actually made in Sterling. This makes it easy for the government to calculate how much in transfer fees, stamp duty etc etc you owe.

If you know approximately when these funds will arrive in your bank account, you can always prewarn the bank's compliance section and send them a copy of the Contract of Sale as proof of where the funds originated. Alternatively, wait until they contact you for an explanation.

We agreed a price and exchange rate when purchasing our house and paid a nominal sum in Euros here followed by the balance in sterling direct to the seller so no exchange rate issues?!

I think I may be looking at this topic differently because I was under the impression that the OP was asking about full payment being made from one UK bank (purchaser) to another UK bank (seller) and the property is in Cyprus. I have done this in the past (not in Cyprus) and had no issues with the banks and other related authorities. A very helpful response from Houdinibin.

One other thing to bear in mind; there is a limit to how much you can send from one bank account to another in one go.

galexinda wrote: ↑Thu Sep 21, 2017 5:48 pm I think I may be looking at this topic differently because I was under the impression that the OP was asking about full payment being made from one UK bank (purchaser) to another UK bank (seller) and the property is in Cyprus. I have done this in the past (not in Cyprus) and had no issues with the banks and other related authorities. A very helpful response from Houdinibin.

Correct that's what I meant

When exchanging the deeds at the Land Registry, do you not have to prove what has been paid for the property in Euros?