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In English, we say something is "too good to be true" to express that apparently amazing deals or benefits generally aren't real. Is there an equivalent phrase in Spanish?

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The literal translation of it is the common way of saying that:

Demasiado bueno para ser verdad

also you could say something like:

Demasiado bueno para ser cierto

Also there is a proverb for that kind of situations which says (thanks leonbloy and Icarus):

Cuando la limosna es grande hasta el santo desconfía (used at least in Mexico)

De eso tan bueno no dan tanto (used at least in Colombia)

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    +1 For once, the literal translation works. And in this context, there is also a popular saying that might be used (but not as translation) "Cuando la limosna es grande hasta el santo desconfía" .
    – leonbloy
    Jan 18 '12 at 18:16
  • @leonbloy Where is that proverb typical from? I've never heard it in Spain.
    – Javi
    Jan 19 '12 at 15:51
  • I thought it was traditional... at least it's also popular in Mexico almallanera.org/refranes.htm
    – leonbloy
    Jan 19 '12 at 21:02
  • "De eso tan bueno no dan tanto" is also used in Colombia.
    – Icarus
    Jan 19 '12 at 22:44
  • @leonbloy thanks, I've updated it's used in Mexico :)
    – Javi
    Jan 20 '12 at 8:02

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