EURO ????

TBBR · Post by **TBBR** » Tue Jun 07, 2005 8:31 am

With the euro worth around 67p this morning and forcasted to fall further what are the implications for Portugal ?

Obviously it is beneficial for for hoders of sterling or dollars but what are the wider implications for those countries such as Portugal who have not benefited from the single currency and seen costs and inflation rise.

IS it good news or not in the long term for those who live or own property in Portugal.

Guest · Post by **Guest** » Tue Jun 07, 2005 9:24 am

The honeymoon is over for Portugal...they didnt grasp a thing like the Irish did and unfortunately Portugal is just going further and further into debt.....I do feel a little sad that the Portuguese let all those years go to waist....the good news is that it might start to get back to the old backwater it always was ...a nice little holiday place to go...all they have to do now is compete with the old eastern block on services etc.......are they up to it.not really....I'm of the Estonia right now...much more for your bucks...

TBBR · Post by **TBBR** » Fri Jun 17, 2005 7:35 am

On Radio4 this morning one of their financial pundits was forcasting continued decline of the euro.
It could fall as low as 62p ( now 66.6, was 71p ).
While it makes buying property better value it must have wider implications for those who own and live in the algarve.
As we are considering a move we would like to here not just the plus points of a cheaper euro but also the minus.

This must be of concern to someone ?

Homme Poco · Post by **Homme Poco** » Fri Jun 17, 2005 8:20 am

"Quick" question for all the economists out there.
If,for instance, we have our villa for sale at euros 500,000,would it be better for us to change the price to the sterling equivalent i.e 333000 (at 66.6).
Or would it not make any difference ?
Can´t get my head round all this stuff!!!

Obrigado
HP

iane · Post by **iane** » Fri Jun 17, 2005 8:32 am

One quick "answer" (and Im not being a smart**se) - who is the buyer likely to be (I mean is it aimed at a Brit whose funds will start by being in sterling or someone whose funds will be in Euro already ?)

iane · Post by **iane** » Fri Jun 17, 2005 8:35 am

Also - as I think a bit about it - what do you aim to do with the proceeds - buy again in € or ship the funds to the UK and convert to sterling to buy something there or what ??

As you say - can be a bit complex - plus the real smarta*se answer is - if we knew what would happen tomorrow on the currency exchanges we would all be millionaires.

digger · Post by **digger** » Fri Jun 17, 2005 9:25 am

TBBR, IMO …..if you are considering moving to Algarve and you think you can believe the Radio 4 financial people then wait a little while before converting your dosh. If the euro drops to 62p then that’s back to where it started
(no big deal for anyone except you, as you’re the one with cash in hand ready to buy, it seems).
But you should only move to Algarve if you truly believe it’s the right option for you, and not because you think you can make a quick buck

TBBR · Post by **TBBR** » Fri Jun 17, 2005 10:57 am

We already own a holiday apt so are used to the vagaries of the exchange rates and as we are contemplating a permanent move the current fall is good news for buyers as in sterling terms our money buys more.
Its good news for those who have their rental income paid in Sterling

However for those expats who have all their assets in the algarve they could see a significant fall in the value in sterling terms.

Imported items will increase in pricen( heinz baked beans , PG tips etc etc so necessary to life abroad, tongue firmly in cheek).
AS will cars, furniture, electrical items and so on.

This can only add to the inflation problems that already beset the poorer EU members like Portugal.

digger · Post by **digger** » Fri Jun 17, 2005 12:03 pm

TBBR wrote: However for those expats who have all their assets in the algarve they could see a significant fall in the value in sterling terms.

yes this is true…. should they want to move back to England at a time when the euro is worth less than it was when they moved here.

re: cars and electric goods (don’t know about furniture), these things are not made in the UK anymore …. are they?

digger · Post by **digger** » Fri Jun 17, 2005 12:14 pm

my wife makes her own baked beans ….. the markets, this time of year, sell the real mccoy in their pods (not dried). So pod them, boil for 10 mins, and mix with homemade sauce (tomato, onion, oregano and/or whatever)

digger · Post by **digger** » Fri Jun 17, 2005 12:17 pm

of course Heinz beans are GM and will turn us all into GM sheep eventaully

sheepish · Post by **sheepish** » Fri Jun 17, 2005 12:21 pm

Baa baa

Homme Poco · Post by **Homme Poco** » Sun Jun 19, 2005 10:48 am

Bom dia iane
Away from beans for a moment..........(excuse me!)
From the people who have looked around our place so far ,I would imagine it would be brought by a british person, presumably with sterling.
The proceeds would go towards building our new place,if we ever hear from the camera.Hopefully that should take care of any capital gains tax???
Which we would be paying in euros.(the new build that is!)
A different question!
If we were to build the new place,and sold this one afterwards would we then be liable for CGT.? As we would not be investing the proceeds in another property in portugal
Any ideas
HP

Bruxinha · Post by **Bruxinha** » Sun Jun 19, 2005 11:26 am

Bom Dia Homme Poco.

As far as I am aware, if you sell any property in Portugal and don't reinvest the proceeds in Portugal within the 2 year roll over period, you are liable for CGT.

But I don't think you have given us all the information we need to give a full and correct reply eg Are you resident or non-resident in Portugal? Is the property in your name or offshore?

You say that presumably the purchasers would buy the property in Sterling, but if the property is onshore in Portugal surely they have to pay in euros? You could take sterling but the sale would have to be made in euros to make up the taxes etc

Homme Poco · Post by **Homme Poco** » Sun Jun 19, 2005 11:55 am

Hello Bruxinha
Some very good points.
We will be portugeuse residents by the end of next week,or should be,you know how it is!!
The property is not offshore.
When we brouht it about 5-6 years ago,we paid sterling.I suppose it wasn´t euros then,but then again we didn´t pay in eschudos.
Thanks very much for your input
HP

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