Law in Spain

Due to the current COVID-19 situation, plenty of people have seen their income decrease and paying their monthly instalments for mortgages and loans become an insurmountable obstacle. Here in Spain the Government has issued two new bills Real Decreto 8 and 11 / 2020 in order to open the door to delay payments on loans for those affected the most. Although at the beginning only mortgages were considered, now all kinds of loans are.

The requirements for this mortgage moratorium need to be all met by the applicant and they are:

• To have their status changed to unemployed or, if you are a freelance or business owner, to have your profit decreased in at least 40%.
• For your household income not to be higher than €1,613 in the month before the application.
• That the monthly loan payment plus the basic utilities rises up to be at least 35% of the household income.

If the loan is a mortgage, it is also required:

• That it is set upon your primary residence, upon a property that you use  for your business (i.e. your office) or upon a property that you let but whose rent you have not collected since the 14^th March 2020 for COVID-19-related reasons.

Banks and other financial institutions will offer you bank products that are not equivalent or do not have the same advantages as the ones contain on the recent bills. If you believe you meet the requirements abovementioned you could be benefitting of a moratorium or pay grace period. Abad Abogados has a team of English-speaking professionals that can help you in these difficult times. Contact us today!