El blog de Maria

Legal tip 959. Maria´s management tips

2013-05-25T20:02:07

Opinion and comments welcome!

Zahara de la Sierra, Cádiz, South of Spain

Legal tip 958. A gorgeous interview with Antonio Garrigues Walker

2013-05-25T19:04:48

My husband, Luis, recommended me to listen to this today. I really enjoyed it. Wanted to share it with you, spcially as, in many occassions, you love Spain more than we do.

Antonio Garrigues is honorary Embassy of Marca España.

Garrigues Walker described the deficit on Foreign Politics of Spain, which should be improved as Spain will better off by improving its relationships with the world.

Spain needs to pay more attention to its relationships with Iberoamerica, North America and Africa. This latter one, for solidarity and nearness reasons.

The psychological element of the crisis is more powerful that the technical one. There are no reasons for negativity. Humanity has overcome many crisis along the centuries and will do likewise with this one. The coming growth is going to be decisive for a fairer humankind.

Failures are necessary. They hurt but they are necessary.

Beach Valdevaqueros", Tarifa, Cádiz, Southwest of Spain, by Chodaboy, at flickr.com

Legal tip 957. NEW! 2013 Enterpreneurs Act

2013-05-24T20:03:03

Ten key points of the same:

1 - VAT will not have to be be paid until the invoice is cashed: beginning January 1, 2014 small businesses will not have to pay VAT on the invoices until the final charge. This tax benefit applies to SMEs and freelancers who are not subject to modules and with a volume of less than 2 million euros. This will have some limitations: employers must pay VAT each year (no later than December 31) even if final charge has not been paid to them. According to the Government, this new system will benefit 1.3 million self-employed and a 1 million SMEs.

2 - Tax advantages to encourage reinvestment . Companies with business of less than 10 million euros, startups and companies that are part of a larger group of companies shall be entitled to a deduction of 10% in Company Tax on reinvested earnings. The investment must be made within the fiscal year in which the benefits are obtained and the two subsequent years. 180,000 enterprises could be benefited by this measure.

3 - Incentives for partners of start-ups The new law includes grants to invest in new businesses. Taxpayers may deduct 20% of the amount destinated to subscribtion of shares in SMEs and investments in start-ups. The maximum deduction base will be 20,000 euros per year .

4 -Lower social security rates for multiemployees and those freelancers who are committed to multiple activities.

5 - Easeness for refinancing agreements.

6 - Limited liability for debts of Entrepreneurs, who will never answer to the debts with his residence, provided the value of the property does not exceed € 300,000.

7 - A second chance to revive businesses. A new mechanism that will secure agreement between the creditors to negotiate a payment plan with a moratorium of up to 3 years.

8 - Cheaper initial costs for SL. A new concept is created: Company of sucessive setting, which aims to lower the initial cost of starting a business. There are limits and obligations to strengthen its capital base and encourage these companies to grow. It hardens the duty of manning the legal reserve (which should always be provided by 20% of income) and prohibits the distribution of benefits until the company reaches the minimum capital requirement for limited liability companies. It limits the annual compensation of officers and members, which may not exceed 20% of net assets.

9 - Less bureaucracy and more flexibility in order to reduce and simplify the paperwork. Emprende 3 project, will launch a telematic way to set up companies with standard forms and using new technologies and collaboration between governments ( State, regional and local authorities).

10 - New ways of financing to facilitate the creditworthiness of small and medium companies.

A street in Torre Alháquime, Cádiz, Southwest of Spain

Legal tip 956. Funds to enterpreneurs

2013-05-23T12:35:46

The president of the European Central Bank Mario Draghi has stressed the need to revive lending to small and medium enterprises (SME) in more favorable conditions.

It has no sense in an Economic and Monetary Union (EMU) that a French or German SME itself at an interest rate of around 2% and a Spanish or Italian one has to pay more than 5%. This is what is known as market fragmentation and in order to solve the problem the institution has already formed a working team with the European Investment Bank (EIB) and other public bodies.

In this sense, the Spanish Official Credit Institute (ICO), together with its counterparts in the eurozone, as the German KFW, will play a key role

ICO signed last week an agreement with the EIB of 500 million euros in order to increase funding for SME and medium-sized companies (up to 3000 employees), mainly in the industrial and service sectors.

The Government approved in mid-March an injection of 22,000 million euros for freelancers and SME through five lines of financing from ICO. The Institute represents 3% of bank assets in Spain, but that 3% turns into 11% of the loan to SMEs.

The ICO is a recurring debt issuer and, in the same way that the state, it has suffered the volatility generated by the increasing lack of investor confidence. In 2013, it has attracted more than 2,500 million euros and the total outstanding balance exceeds 66,000 million. It maintain permanent road shows mainly with investors.

President of ICO in Spain has noticed a change in investor perceptions about the Spanish role. "The rescue is no longer a concern." Furthermore, investors are returning, not only from the eurozone, but also Europeans (UK, Switzerland), from the U.S.A and from East. "We found a clear improvement in confidence in Spain. I think they increasingly see our country as a potential market, with future and to invest. "

At this time, the major concern, the big question for investors is about the ability of the Spanish economy to grow in the long term. "There is a market consensus that we will go to a recovery, probably as early as the fourth quarter of this year, and we will return to positive rates next year."

The president of the Official Credit Institute (ICO), Román Escolano, has put on the table a fund of funds, provided with 1,200 million euros, which seeks "the transformation of venture capital in Spain " with the goal of facilitating the alternative financing to the bank one. In order to cope with the credit lack, the head of the ICO warns that "what is needed is more access to own funds, to equity". "Spain is less developed in this area that the U.S. and Israel," he explains.

From the fund of funds -which will have the name of -Fond- Global ICO- will hang the bilateral fund to finance to SMEs which has been agreed by the Economy Minister , Guindos, and the German Treasury one, Schaüble. Escolano is simplifying credit lines, a change that will allow easier access to the 22,000 million which will be mobilized in the coming months to fund to entrepreneurs.

Sanlúcar de Barrameda, Cádiz, Southwest of Spain

Legal tip 955. Announced support for foreign enterpreneurs in Spain

2013-05-22T14:04:06

The Minister of Employment and Social Security, Fatima Bañez, announced on last 20th of May that the Draft Law on Enterpreneurs is almost finalized.

This aims to reduce the Social Securiry contributions to the self-employed who are in situation of multiple activities and will facilitate the entry of foreign investors who create employment.

During her speech Fatima Bañez stressed that it will facilitate the entry and residence of foreign investors and entrepreneurs evidencing an intention to do economically relevant investments, seeking to undertake and create jobs in our country. Also it will facilitate the attraction of highly qualified professionals and researchers.

The National Reform Program provides for a new regime, for visas and residence authorizations to drive the attraction of talent and investment.

These authorisations will be easily obtainable and valid throughout the national territory. It will apply to foreigners who invest in business projects that create jobs , making an investment with relevant socio-economic impact or a significant contribution to scientific and technological innovation.

Only with the Strategy of Entrepreneurship and Youth Employment it is expected to carry out more than two million actions throughout its four years of development and in particular, the emergency measures will benefit more than one million young people”

"In short- the minister concluded- we have incentivized the permanent and quality hiring of our youth and we have implemented measures to incentivize entrepreneurship among the youth with a flat rate of 50€, and initiatives that improve the protection of the self-employed and develop the so-called second chance. "

A related post: Spain´s growth by its foreign lovers and some other ones, as we have been asking for repeatedly :

The Comments
02 October 2010 by mariadecastro in Algeciras (Cadiz). 7697 posts Edit this post We need you to come and start companies in our country. We have been thinking of this from the beginning of the crisis, looking to all the house oversupplies and services to be provided to future inhabitants of these houses. See some examples: http://www.eyeonspain.com/blogs/costaluz/88/proffesional-services-for-renting.aspx http://www.eyeonspain.com/blogs/costaluz/113/spain-hospitality.aspx http://www.eyeonspain.com/blogs/costaluz/305/we-do-not-want-to-cancel-contractscostaluzlawyers.aspx http://www.eyeonspain.com/blogs/costaluz/339/financial-crisis=-creativity-times.aspx http://www.eyeonspain.com/blogs/costaluz/494/faith-in-spain.aspx http://www.eyeonspain.com/blogs/costaluz/497/what-can-we-do-as-the-best.aspx http://www.eyeonspain.com/blogs/costaluz/671/optimismde-qu%C3%A9.aspx http://www.eyeonspain.com/blogs/costaluz/756/picture-couple-of-books-and-last-paper-by--stiglitz.aspx http://www.eyeonspain.com/blogs/costaluz/726/coworking.aspx

The Comments

02 October 2010 by mariadecastro in Algeciras (Cadiz). 7697 posts

Edit this post

We need you to come and start companies in our country.

We have been thinking of this from the beginning of the crisis, looking to all the house oversupplies and services to be provided to future inhabitants of these houses.

See some examples: http://www.eyeonspain.com/blogs/costaluz/88/proffesional-services-for-renting.aspx

http://www.eyeonspain.com/blogs/costaluz/113/spain-hospitality.aspx

http://www.eyeonspain.com/blogs/costaluz/305/we-do-not-want-to-cancel-contractscostaluzlawyers.aspx

http://www.eyeonspain.com/blogs/costaluz/339/financial-crisis=-creativity-times.aspx

http://www.eyeonspain.com/blogs/costaluz/494/faith-in-spain.aspx

http://www.eyeonspain.com/blogs/costaluz/497/what-can-we-do-as-the-best.aspx

http://www.eyeonspain.com/blogs/costaluz/671/optimismde-qu%C3%A9.aspx

http://www.eyeonspain.com/blogs/costaluz/756/picture-couple-of-books-and-last-paper-by--stiglitz.aspx

http://www.eyeonspain.com/blogs/costaluz/726/coworking.aspx

Route among El Bosque and Benamahoma, Cádiz, South of Spain

Legal tip 954. Essential IESE Newsletter

2013-05-22T08:46:10

Exciting as always!

http://www.ieseinsight.com/home.aspx?idioma=2

Zahara de los Atunes, Cadiz, Southwest of Spain; and África at the bottom of the image

Legal tip 953. Purchase option and rent with purchase option in Spain

2013-05-21T14:21:12

A scientific explanation of a legal figure which, again, might be a good way to go for property purchase in Spain. Option to purchase

AP Barcelona January 28, 2009 gives a precise definition of the purchase option:

"That agreement by virtue of which one party grants to another the exclusive right to decide on the execution or not of another main contract, to be done within a certain period and in certain conditions, which may also be accompanied by the payment of a premium by the elector, and constituting therefore its essential elements:

-the allowance to the elector of the unilateral decision regarding the execution of the purchase,

-the indication of the price stipulated for the future acquisition and

-the determining of the period for the exercise of the option;

being an "accessory" element the payment of the premium.

The optionor is who is unilaterally linked until the elector decides. It is governed by the general provisions on obligations and contracts except the rules that do not suit its own essence.

It is a preparatory contract. Among others, sentences of the Supreme Court February 14, 1997 and May 18, 1995.

Therefore consists in granting the elector, by clause inserted into the urban lease, the sole authority to give consent within the period contractually stated, to the offer of sale

"Lease with purchase option"

The sentence of the Supreme Court dated July 6th, 2001, defines the lease with purchase option as the insertion of a clause by which it is fixed the sole authority to give his consent within the period contractually stated to the offer of sale, which by the primary effect of the option is binding for the promissor, who cannot takes it back during this time , and once appropriately exercised the option expires and is consummated and the purchase agreement is automatically perfected without the possibility that the optionor or the grantor can do anything, to thwart its effectiveness, because it is sufficient for the perfection of the sale with the elector, as in the discussed case has been proved , that he has communicated his will to exercise its right of option. In the same line, sentence April 3, 2006.

Once duly exercised the option expires and it is consummated and the purchase agreement is perfected automatically, without the owner or grantor can do anything to thwart its effectiveness, because it is enough for the perfection of the sale that his will to exercise their right of option has been communicated.

The price is an essential element of the sale and it is a fundamental requirement to be fixed or determinable. By contrast, the option can be by price or free. Therefore the payment of the premium is an accessory element

The option right cannot be assigned by the elector in favor of third parties without the consent of the grantor. The reason for this is that it is not a true subjective right but only an authorization. The consent must be express but from a civil standpoint the tacit consent is admitted.

Beach of Chipiona, Cádiz, Southwest of Spain.

Legal tip 952. Goods of new Mortgagor aid Law

2013-05-20T11:42:58

There are many things I like about this Law but always, take into account, this is for mortagge debtors where the mortgaged property is a first residency and meets the requisites of exclusion.

- I like the fact that debtor can properly deffend himself now in the repossession/enforcement procedure, specially if abusive clauses are contained in the mortgage deeds.

- I like the fact that it puts higher limits for Banks to value repossessed properties and it also limits quite well the possibilities for the bank to unfairly keep requesting rest of debt after repossession.

- I like the fact that it puts and end to monopoly of some property valuation companies and makes any valuation brought by the consumer, obligatory by the bank under strict sanctioning.

- I like the fact that it enhances transparency and possibilities for everyone to auction.

I like a lot that makes a call to the government for social use of empty houses owned by Banks

Jimena de la Frontera, Cádiz, South of Spain.

Legal tip 951. Mediation and trust

2013-05-20T11:14:05

De Rosa. Vicepresident of the General Council of Judicial Power (GCJP) says that in Spain "there are more than 9 million new cases every year" and sees mediation as alternative figure

Mediation Act is "an alternative method to the judicial process and it has to be absolutely supported."

"The judicial support given to the mediation must be a system in which society itself tries to solve its problems by itself and it makes justice fulfill that constitutional objective, which is to be the last resort of the citizens,"

What is needed so that mediation works is "a social conscience and good mediators and especially the mechanisms in which society trusts are established ".

De Rosa pointed out that Spanish society "today trusts the administration of justice, so it goes to the judges" but also "society has to trust that this mediation will give the same result than going to the Administration of Justice ".

Trust. Not an easy word. Ethical revolution needed to society can freely breath. Possibly not before some Politicians, Bankers and High People are sent to jail for real. They are people at the end of the day under same legal and ethical rules as the rest. Do not get blind.

Alcalá de los Gazules, Cádiz, Southwest of Spain

Legal tip 950. Insurance Policy for CostaGalera phase III clients

2013-05-17T12:22:27

For those of you interested. We have received ( for a client of us claiming deposits out of Law 57/68) the General Insurance Policy for the recovery of amounts paid in Costa Galera Phase III.

For those of you who were not provided with this, and were legally entitled to it. You can now claim using this General Policy. Case Law backing this.

Have a great weekend!

Maria

Strait of Gibraltar, Cádiz, South of Spain

Legal tip 949. NEW! Law on protection of mortgage debtors in Spain

2013-05-17T09:47:27

Summary of Act 1/2013, of May 14, on measures to strengthen the protection to mortgage debtors, debt restructuring and social rent (BOE of 15-5-2013)

In "attention to the exceptional circumstances facing our country, motivated by the economic and financial crisis, in which many people who hired a mortgage loan to purchase their primary residence have difficulties to meet their obligations" Act 1/2013 has just been published

This Act, contains four chapters.

Chapter I (Suspension of repossessions) : provides immediate suspension for a period of two years for evictions of families who are in a particular risk of exclusion.

We estimate as families in such a situation those:

a) Single-parent families with two dependent children, families with a child less than three years old or a disabled or dependent member, or families in which the mortgagor is unemployed and has exhausted the social benefits or, finally, the victims of domestic violence.

b) Whose income does not exceed three times the Public Indicator of Multiple Effect Income.

This limit rises on households in which a member is disabled or dependent or residing with disabled or dependent persons.

It is also necessary that in the four years preceding the time of the application, the family unit has undergone a significant alteration of their economic circumstances, in terms of effort to access to housing. This significant alteration of their economic circumstances is measured based on the change of the mortgage burden in the income suffered in the last four years.

This measure, exceptionally and temporarily, will affect any prosecution of foreclosure or extrajudicial sale.

In these cases, the Law, without altering the foreclosure process prevents the eviction.

Finally, the inclusion in the scope of application goes through the fulfillment of other requirements, among which we can highlight that the resulting mortgage payment exceeds 50 percent of the net income received by all the members of the family unit, or it is a question of a loan or mortgage loan secured only falling upon the only owned debtor's home and granted for the acquisition of it.

For these particularly vulnerable debtors, the debt will not accrue more delay interest than the result of adding to the compensatory interests two percent on outstanding debt.

Chapter II on Measures to improve the mortgage market:

Especially relevant is the fact that, for mortgages on first residence, default interest will be limited to three times the legal interest.

It also explicitly prohibits capitalization of these interests and provides that in case that the result of the repossession is insufficient to cover the entire secured debt, this result will be applied to delay interests, so that it is allowed, in a big extent, that the principal amount stops accruing interest.

In the extrajudicial sale of mortgaged properties, law introduces the possibility that the notary can suspend it when the parties can prove that it has been requested to the competent court, as provided by Article 129 of the Mortgage Law, to issue resolution decreeing inappropriateness of such sale, because of the existence of abusive clauses in the mortgage loan or its continuation without the application of the abusive clauses. Furthermore, it expressly empowers the notary to advise the parties on abusive clauses .These amendments are adopted as a result of the judgment of the Court of Justice of the European Union of 14 March 2013

On the other hand, it is strengthened the independence of valuation companies from credit institutions. And legal valuations made by the client need to be accepted by the Bank under strong sanctions.

Chapter III on Modification of the foreclosure procedure :

These modifications are intended to ensure that foreclosure is done so that the rights and interests of the mortgagor are adequately protected and, overall, a speedier and more flexible enforcement proceeding is done.

In particular, as a measure of great importance, it is established the possibility that if after an usual home foreclosure it still remains an outstanding debt ,during the subsequent moeny enforcement proceedings part of the payment of the remaining debt will be canceled , provided that certain payment obligations are fulfilled.

In addition, the debtor is allowed to participate in the potential future appreciation of the executed house.

On the other hand, it facilitates access of bidders to auctions and the requirements imposed on them are reduced, so that, for example, it decreases the necessary guarantee to bid from 20 to 5 per cent of the appraised value of goods.

Also it doubles, in the same sense, the period to consign the price of the award for the bidder of an auction.

Certain improvements in the auction procedure are introduced , establishing that the appraised value for it will not be less than 75 percent of the appraised value that was used to grant the loan. Previously there was no limit to the type of auction. In addition, in the event that the auction ended without any bidder, the percentage of the allocation of the property increases. Specifically, it would rise from 60 per cent to a maximum of 70 percent, always for cases of residence.

This Chapter also includes the modification of the enforcement proceedings to the effect that, on its own initiative or upon request, the competent court can appreciate the existence of abusive clauses in the enforcement order and, therefore, it declares the invalidity of the execution or , in its case , its continuation without application of those clauses estimated abusive.

Chapter IV . It offers different solutions against foreclosure to those under exclusion risk and meeting certain requisites.

Retroactivity: For repossession procedures already started, this Law will be applied just to those enforcement acts still to be perfomed

"Plaza de España", Grazalema, Cádiz, South of Spain

Legal tip 948. IMPORTANT. Claim on Illegal Insurances assisted by Ministry of Economy

2013-05-16T13:41:07

Ministry of Economy has contacted us today for us to collaborate with them on the inspection and punishment of illegal Insurance Companies which operated in our territory during the real estate boom or are still operating.

Anyone affected by any of these, please email us to: web@costaluzlawyers.es with the subject: Illegal Insurance

This is the list of those non authorised companies.

AGRUPACIÓN DE CAPITALES, S.A.

ALBATROSS INVEST, S.P.A.

AMERICAN BRITISH INSURANCE Ltd.

ASOCIACION COARBI CORTE ESPAÑOLA DE ARBITRAJE INSTITUCIONAL

ASOCIACIÓN CORTE ESPAÑOLA DE ARBITRAJE ECONÓMICO DE DERECHO Y EQUIDAD

ASOCIACIÓN GESTORA ESPAÑOLA DE ARBITRAJE

ASOCIACIÓN PROMOTORA ESPAÑOLA DE CORTES DE ARBITRAJE

BARKLEY DEVELOPMENT CORPORATION (sin vínculos ni relación con W.R. BERKLEY INSURANCE (EUROPE) LIMITED SUC. EN ESPAÑA, que es entidad aseguradora autorizada)

COBERTURA ASISTENCIAL DEPORTIVA S.L.

COMPAGNIE DES GARANTIES DE LUXEMBOURG, S.A. /COMPAGNIE

CORSA FINANCE LTD

DES GARANTIES, S.A-COMPAGNIA DI CAUZIONI, S.A-CAUZIONI, S.A.

DIMAX, DISTRIBUCIONES DEL TERCER MILENIO, S.L.

EUROCAUCIÓN LEVANTE SL

EUROCAUCIÓN SL

EUROPA CAUZIONI, S.p.A.

EUROPEAN COMPANY OF GUARANTEE LTD

GABINETE PREVENTIVO DE MEDICINA DEPORTIVA

GENERAL FIDI CONSORCIO GARANTIA FIDI

GRAVITELL INSURANCE@REINSURANCE BROKERS S.L

GRAVITELL LIMITED

HENRY MORTIMER PLC

HUGIES ROYAL FINANCE CORPORATION

IBERSHAMROCK S.L.

INKORE

ITALFINANZIARIA S.p.A.

LAUREN´S INSURANCE, Ltd.

LÓPEZ SEGUROS INTERNATIONAL INSURANCE COMPANY

MEMORIAL EXEQUIAS INTERNACIONAL S.L.

MERRION REINSURANCE COMPANY, Ltd.

MINOS SPA

MUTUELLE DE STRASBOURG

MUTUELLE INTERNAZIONALE D´ASSURANCES LA PARISIENNE

NORTHERNEEF INSURANCE COMPANY

SECURE CONSTRUCTION LIMITED

SEGUROS NOVA

SHAMROCK PROPERTIES OVERSEAS LIMITEDv

SUNNY LUCKY SEGUROS

SWISS FINANCIAL CORPORATION

TEMPLETON INSURANCE LTD

TOP CLASS INSURANCE

UNIÓN GENERAL DE VALORES, S.A.

Street of Benamahoma, Cádiz, South-west of Spain

Legal tip 947. NEW! Spain Supreme Court and lack of financiation

2013-05-14T16:27:10

In a decision dated January 13rd this year, the First Chamber of the Supreme Court confirmed the cancellation of a property purchase contract due to breach of the obligation of the seller to provide finances to the buyer.

According to claimants, seller had breached its contract, which expressly stated the right of subrogation of mortgage loan of developers, thereby ensuring obtaining the necessary funding for housing acquisition.

The Supreme Court had stated on previous occassions that the obligation to provide financing by developers is incidental ( non essential- no cancellatory), as reflected in the contract as an activity duty rather than a result duty, being the buyer, who is obliged to manage the mortgage himself.

However, in this new case, the reservation contract made by the seller included an offer of great commercial appeal, which was that "in any case, if you want, you can subrogate the mortgage of the seller". The developer promised that the bank would agree to subrogation and did not act sufficiently to fulfil this promise.

The Sentence keeps saying that if the developer was not in a position to offer an unconditoned financing offer to the buyer, this should have not been promised to the consumer on the contract.

Good for the pro-consumer Supreme Court!

Rota, Cádiz, Costa de la Luz, South-west of Spain.

Legal tip 946. NEW! Royal Decree on Energy certificates

2013-05-14T11:54:07

Not easy reading possibly, but most interesting for owners and agents!

http://issuu.com/mariadecastro/docs/energy_certificate

We welcome any questions!

Cheers

Maria

Bay of Cádiz

Legal tip 945.NEW! Decree on aids for Electrical vehicles in Spain

2013-05-14T10:15:48

Summary of the Royal Decree 294/2013, about subsidies for the acquisition of electrical vehicles in 2013

The Royal Decree 294/2013, 26 April, by which it is regulated the direct grant of subventions for the acquisition of electrical vehicles in 2013 (BOE 27 April 2013) in the setting of the comprehensive Strategy for the impulse of the electric vehicle in Spain 2013-2014 has as its aim to facilitate and promote the development of the electric mobility because of its contribution to the improvement of the transport sector, to an improvement of the energy efficiency, to an environmental improvement and a less dependence of oil products.

Vehicles to which it affects: It is understood as new electric vehicles those which propulsion energy comes, totally or partially, from the electricity of their batteries, charged by the electric network. The motor bikes of the categories of the vehicles that can receive a subsidy are excluded because it exists a bigger offer that contributes to get the foreseen environmental and energy efficiency improvements, with competitive costs.

Who can ask for the subsidy: individuals, independent workers and private businesses

Amount of the aids: It is established a fix quantity for light quadricycles L6e and heavy quadricycles L7e, whereas for the rest of vehicles the amount of the helps is fixed according to its autonomy.

It is suppressed the increase of the help in case of acquisition by the same person of more than a vehicle.

System of administration of the aids: It will be done directly between the petitioner and the Ministry of Industry, Energy and Tourism through the General Management of Industry and the PYME, if it doesn´t exist any collaborating entity. The payment of the help will be done directly to the beneficiary once the competent authority has decided the grant. And it is still possible to register records for vehicles pending to be registered.

It is applied to these helps what it is written in article 22.2 c) of the General Law of Subsidies 38/2003, 17 November, regarding the helps in direct grant regime, being this Royal Decree a continuation or extension of the Royal Decree 648/ 2011, 9 May, by which it is regulated the direct grant of subventions for the acquisition of electric vehicles during 2011, in the setting of the Action Plan 2010-2012 of the Comprehensive Plan to Impulse the Electric Vehicle in Spain 2010-2014.

Structure of the rule: It has 14 articles and two final Orders.

Article 1- Object and field of application of this Royal Decree:

It establishes that the helps will be given to the acquisitions of new electric vehicles and operations of financing by financial leasing and hiring by renting or operative leasing of these vehicles as long as the contract has a minimum length of two years, when those acquisitions and operations are done since the 1st of January 2013 and the applications are registered in the electronic system of administration of the subsidy since the opening of the system until the 31th of October 2013 in the case of registered vehicles or 31th of August for vehicles pending to be registered, or until the termination of the funds if this circumstance happened before.

Article 2: Beneficiaries of these helps:

a) independent workers, who will have to be registered in the Economic Activities Tax (IAE)

b) individuals resident in Spain not included in paragraph a)

c) private businesses, legally constituted in Spain in the moment of presenting the application, and with a legal nature that makes that his Tax Identity Code (CIF) begins with the letters A, B, C, D, F, N or W.

In the case of acquisitions or financial leasing the beneficiary is the holder of the registration registered in the database of the General Management of Traffic.

Article 3: Items that can be subsidized

Article 4: Individual quantities of the aids, depending on the vehicle to get and its autonomy functioning exclusively as an electric vehicle

Article 5: Regime of granting and financing these subsidies.

Article 6:It commands that the competent authority to order and hear the proceedings of grating will be the General Management of Industry and of the PYME and to decide the Minister of Industry, Energy and Tourism, without prejudice to the valid delegations in the matter.

Article 7:It points out that the administration of the helps will be done by the General Management of Industry and of the PYME by an electronic administration system, with the guarantees required by the Law 11/2007, 22 June, about electronic access of the citizens to the Public Services, and the rest of the rules that regulate the electronic Administration.

Article 8: It is included the period to present the applications, establishing that for vehicles got since the 1st of January 2013 it will be since the opening of the electronic administration system until the 31st of October 2013, both dates included, or until the termination of the funds written in article 5, paragraph 2 of this Royal Decree, if this happens before. In the case of vehicles pending to be registered, the deadline will be the 31st of August, or at the termination of the funds written in article 5 paragraph 2 of this royal decree, if this happens before.

Article 9: It regulates the formalization and presentation of these applicants.

Article 10: It speaks about the decision and payment of the helps.

Article 11: Monitoring and control of them

Article 12: Their compatibility

Articles 13 and 14, respectively, on the publicity and legal regime of the subventions.

Entry into force: This Royal Decree came into force the 28th of April 2013, the day after its publication in the Official Bulletin of the State.

"Esta tarde en Punta Umbría", Huelva, South-west of Spain, by pericoterrades, at flickr.com

Legal tip 944. IHT on my usufruct as widow?

2013-05-10T17:40:42

Usufruct heirs has a tax liability on the share he is inheriting ( as usufruct). That share is calculated by substracting your current age to 89. That is the percentage which, applied to value of assets, will determine the value of your share.

For instance:

If the two properties value is 200.000 euros, and you are 65 yeards old. The value of your usufruct is calculated:

89-65 equals 24. ( it always needs to be between 10%-70%)

24% of 200.000 is 48.000€

So, ownership heirs will have to pay taxes on 152.000 € and you will have to pay taxes on 48.000€.

If taxes are not paid by heirs, the AEAT might start an enforcement procedure on any free assets owned by debtor heirs.

"P1030200.JPG", by jtatam, at flickr.com

Legal tip 943. NEW! Supreme Court and contract cancellation by calm

2013-05-10T17:27:25

Dated November 2012, our Supreme Court has declared the cancellation of the house purchase contract due to breach of the seller consisting on the fact that he changed the location of twelve outdoor condensers or air conditioning units.

The change affected the master bedroom of the house of the claimants, not being a mere annoyance but a substantial alteration of the contract. The Court expresses that the change in location of these condensers hinders the peace and tranquility that is expected of a home.

Nice!

Vejer de la Frontera, Cádiz, South-west of Spain.

Legal tip 942. NEW! Supreme Court and mortgage abusive clauses

2013-05-09T17:59:45

The Supreme Court has established Case Law from a case against BBVA, United Rural banks, NCG Banco. The Court notes in the Decission that in cases of abusive clauses, courts should "temper" the classic rigidities of process, so that it is not necessary the adjustment to the structure of appeals.

In the case under study, Supreme Court emphasized that "ground clauses" that were included in these contracts "outgrow transparency control as a general condition in the contracts, but do not breach the clarity required as contracts signed with Consumers"

The High Court understands that the terms are not transparent because, among other things, they are inserted "together" with "ceiling clauses" as apparent consideration of the same and there are not simulations of different scenarios related to reasonably foreseeable behavior of the interest rate in the time of hire.

It also highlights that there is no " clear and understandable" prior information about the cost of the loan in comparison with other types of loans of the entity, if any, or specific warning that the specific client profile is not offered the same.

In the specific case of BBVA, the decission warns that these clauses is "located within an overwhelming amount of data among which floor clauses are masked and diluted from consumer attention."

After analyzing the complaints filed by the plaintiffs, the Supreme Court proceeds to condemn banks to remove clauses from their contracts examined "in the form and manner in which they are being used" and prohibits them from future use as they were written in those contracts.

It further states that existing contracts "will remain binding on the parties under the same terms" but without the abusive terms. It also states the non-retroactivity of the judgment, so that the invalidity of the provisions shall not affect the continuation of the contract or payments already made.

Wise judges of my country! Time for people to rule!

Cheers!

Congratulations to all!

Maria

Beach of Bolonia, Tarifa, Cádiz, Costa de la Luz, South-west of Spain

Legal tip 941. Lower Court Fees for community of owners

2013-05-08T10:01:09

0,1% of claimed amounts, instead of 0,5% when they act as claimers.

For more information on Comminity of Owners law, you can read:

http://issuu.com/mariadecastro/docs/88_q_a_on_community_of_owners_in_spain

http://issuu.com/mariadecastro/docs/community_of_owners_spain

And please email us to web@costaluzlawyers.es, if you have related questions.

A beach in Conil de la Frontera, Cádiz, South-west of Spain.

Legal tip 940. NEW! Aifos administrators provide information for action against Bank

2013-05-06T13:01:39

We have received today all information necessary for us to deffend an Aifos client against the Bank which received their deposits.

The Judge requested Aifos Judicial Administrators to do so several days ago and we have received today all necessary information to go ahead.

Brilliant!

Maria

"Margaritas" (Daisy flowers), near Huélago, Granada, South-east of Spain, by Phranet, at flickr.com

Legal tip 939. German investors coming to Spain. What about UK?

2013-05-06T08:51:14

Berlin and Madrid will create a fund by which the German funds and businesses can invest in Spanish small and medium businesses which have the possibilities of being competitive and ability to generate employment, in a moment when the small businesses are suffocated because of the lack of credit even though they confirm their solvency.

Guindos assured that this mechanism “with a scheme of sponsorship and patronage” will be ready “in a very short time” probably at the end of May. The intention of both Governments is that capital from Germany can be injected to the Spanish small and medium businesses with a possibility of development.

The idea “is still opened”, “but it is very little probable that it will have also public money”.

The Spanish Government has been claiming for months about policies in Europe that favor the creation of employment and that improve the problem of the liquidity of the businesses, because of his own incapacity to solve it. The European Central Bank (ECB) is studying to stimulate the credits to small and medium businesses reducing the collateral required to the Banks for these loans when they go to this organism.

The plan of reforms that the Council of Ministries approved last Friday takes into account in some way an injection of loan till 45.000 millions for small and medium enterprises with the cooperation of Official Credit Institute in Spain ( ICO) and the Banks, even though these similar stimulations have never offered big results.

Basis of the Spain-Germany agreement in order to create employment:

1.- Although the final instrument must still be decided, the Spanish and German Governments “will sponsor a fund" that will be a vehicle for investment of German businesses and entities in Spanish small and medium businesses, which are “competitive” and have “the ability of generating employment” mainly for young people.

2.-Every ministry will name a person of his office to create a team of two persons that will coordinate the proposal. This project must be finished in “a very short time”, that may be presumably at the end of May.

3.-The final formula has to be decided, but from Berlin they indicate that “it is very little probable that this new instrument is supplied with public money” so the investment will have to come from German investors, who have detected possibilities of investment in the Spanish economy.

"Jaramago", A plant from the south of Spain in Spring, by Phranet, at flickr.com

Legal tip 938. NGOS and Private enterprise by IESE

2013-05-02T12:33:09

Need to admitt I love this IESE people!

Have a great weekend!

Maria

NGOs: The Natural Allies of Private Enterprise

Peiró Barra, Andreu

Publisher: IESE

Original document: La responsabilidad social y la contribución al desarrollo

Year: 2012

Language: Spanish

Multinationals often have more resources at their disposal than governments do to solve local problems of socioeconomic development.

However, if they are negligent, they can potentially do more harm than good, as illustrated by well-known incidents of child labor by the likes of Nike, Apple and Inditex.

Being aware of the impact their businesses have, many companies are increasingly looking to align their corporate social responsibility (CSR) policies with local development strategies.

A paper by Andreu Peiró, and published by the "la Caixa" Chair of Corporate Social Responsibility and Corporate Governance at IESE, examines how business organizations can contribute not only to economic development, but also to social, cultural and environmental sustainability.

From Philanthropy to Integration
Companies are shifting away from the traditional philanthropic model to a more strategic approach. A simple monetary contribution does not allow for any control over the impact being made, and also limits the resulting long-term benefits.

Focusing efforts on development and socially conscious investments can translate into competitive advantage, a solid reputation, stable work environments and productive relationships with local authorities.

Companies are no longer passive observers. They are taking on a more active, involved role. Rather than a damage limitation exercise, they regard CSR as a way of creating shared value.

For example, Merck's donation of Mectizan to combat "river blindness" represents one of the most successful public/private collaborations in the world.

Charity Begins at Home
Apart from large-scale programs like this, companies can make a positive impact through their day-to-day activities, from simply saving energy to offering responsible pricing.

Along these lines, Unilever in Europe has started marketing products in individual packs or as cheaper local brands.

Promoting quality workplace environments is another activity. The Brazilian business group Semco lets employees have a say in their own working hours, wages and supervisors, and they can democratically elect the senior management team. Meanwhile, staff at the Marriott hotel chain in Cancun, Mexico, have taken up the local cause of protecting sea turtles.

NGOs as Key Partners
Because of their local knowledge, NGOs are important partners in guiding companies toward what are the most urgent needs of the communities in which they operate.

Carrefour cooperates with the Codespa Foundation by giving shelf space to the goods of Ecuadorian farmers, and has also teamed up with Adopem Bank on a microfinance project enabling Dominican women to start their own businesses.

Such collaborations can take the form of joint ventures, based on a set of shared values and strategic objectives.

The U.K. department store Marks & Spencer has collaborated in a venture with Oxfam, offering discounts to customers who recycle clothing. This prevents clothes from ending up in landfill sites, while raising three million pounds for charity to date.

Volunteer programs are another way that companies are investing in local communities. Iberdrola, for example, sends employees to Sao Paulo to provide training in software and Web applications to young people at risk of exclusion, through the Deporte Integra Foundation.

Top

"Vista parcial de Huélago", Huélago, Granada, South-east of Spain, by Phranet, at flickr.com

Legal tip 937. UK Government congratulations on Finca Parcs case

2013-04-26T14:27:52

Foreign & Commonwealth Office
Overseas Residents Service Unit
Consular Assistance Group
Room WHMZ 4.2
King Charles Street
London
SW1A 2AH

25 April 2013

Our Reference: MIN/*****/2013

Dear Keith,

Thank you for your letter of 04 April to the Prime Minister about his recent visit to Spain. Downing Street have passed the letter to me and asked me to reply.

Firstly, I want to extend my congratulations to you and all those involved over the recent Albacete Appeal Court decision dismissing the Banco CAM appeal and ordering them to pay the costs of the appeal. You must be really pleased with this decision. Myself and colleagues at the British Embassy in Madrid – including the British Ambassador, Giles Paxman - have been monitoring the case and were thrilled to hear of your success. Your success is a valuable case study for us to reference in discussions on property matters with Spanish authorities - particularly when talking about bank guarantees.

In your letter to Prime Minister you ask that he raise bank guarantees with Mariano Rajoy. I can confirm that the Prime Minister discussed a range of issues during his visit, including reform of the EU and prosperity priorities. Unfortunately, property issues were not covered. I can confirm, however, that bank guarantees in Spain remains a subject that UK Ministers are aware of and raise where they have the opportunity. Mr Paxman and officials at the British Embassy do likewise during their meetings with Spanish officials. This is an issue that we know continues to affect British Nationals and we will continue to urge the Spanish authorities to address it appropriately.

Yours sincerely,

Stelios Kyriakides

"Sierra Nevada", Granada, South-east of Spain, by Phranet, at flickr.com

Legal tip 936. The Keith Rule Action

2013-04-26T11:45:34

Read the article from bottom to top. It pictures how the action against developers of early times, was there converted to an action against Banks ( thanks to Keith Rule´s vision and passion and CostaLuz/De Castro will to assist him and many other ones involved in same fiasco)

The 2013 edition of this post, this of today´s, would be composed by the long list of Courts on all over the spanish territory which are now following the KEITH RULE action, as it is called when the Restore Action was turned against Banks!

Such a great story!

Legal tip 817. The restore action. A revision
23 August 2012 @ 15:04

The restore action post was written in 2009. Some amendments made by September 2010 (italic)

At present many of those claims need to be reconducted against related Banks or Insurance Companies and the deals to be made with them.

It is so good that money was not lost along the way and clients can still give value to their deposits due to the existence of Law 57/68 and developing related Case Law.

There are also cases where developers are offering same properties to same clients even applying a reduction on the outstanding mortgage.

They desperately need buyers. We, as spaniards, need you too. Come!

Legal tip 138. The restore action

11 September 2009 @ 10:24

If you are in the middle of an off-plan contract cancellation action or are thinking of claiming.

There are many things to be done depending on how the finantial/economic situation will develope in the coming months. ( + possibilities of your action against the financial institution you paid your deposit into, for more info on this, please click on here)

First thing to bear in mind is that this is going to be a buyer´s market for many years to come, and with that no-pressure by sellers and buyers running the show....

-You can buy at a good price and better interest rates

-You can rent with an option to purchase, fixing the price in advance.

-If you are pursuing cancellation (action that can also be called: "restore action": it puts balance in the contract after an abusive old agreement ), you have got several finantial assets:

-A potential credit against a developer for the refund of x plus legal interests.

- Buying rights on the property in between (the developer cannot sell to anyone else till the contract is effectively cancelled and your money refunded).

- A better position within the creditor´s meeting (if that ever happened)

So... it is not just a matter of contract cancellation at whatever cost, it is a matter of re-establishment of balance. Many of the clauses of many of the contracts I have seen during the last 4 years and a half, which were drafted during the period 2003-2009 are are corrosively abusive. Repugnant.

They were drafted with no respect at all towards the agreed terms od developers, Ministries, consumers… under the National Institute for Consumers in 2001.

I am enlisting some of the games you can play with the above mentioned assets at hand ( but I am not a finances expert.... so please, make your contributions! ):

- You can negotiate a great price reduction with the developer along the judicial proceeding and complete on the property at a much reduced price and with much reduced interest rates

(some clients of us are using this formula now)

- You can sell your buying rights to someone else and withdraw the claim, negotiate with both developer and new buyer on a reduced price and the payment of the judicial costs ( it seems German and Norwegian have already some money to look for some sun).( Almost all developers are now ready for settlements of this nature)

It is all a matter of some fluctuants, not rigid factors such as:

- Evolution of the market

- Flexibility of developer

This factor seems to be clearly determined by the decisions of the finantial institutions regarding their own property stock.

but the possibilities are there ( together with many other ones, I am sure)

that.... together with the awesome sensation of being back in control of the situation ( a new contract agreement) or at least of a great deal of it.

What do you think?

Could we all together transform the current situation in a win-win scheme? Please send your ideas.

Maria L. Castro

Beach "Fuente del Gallo" (Conil de la Frontera, Cádiz), by Luis López-Cortijo

Legal tip 935. NEW! Case won against Bank in Granada

2013-04-24T14:37:48

A new Court Decission, from a new province: Granada this time. Developer: Leonardo da Vinci- Bank: BBVA

Condemn the Bank to refund buyers due to lack of request by this financial institution of the legally required Guarantees or Insurance Policies according to Law 57/68.

Judges are ruling!

Maria

"Vista Parcial de Granada", South-east of Spain, by Phranet, at flickr.com