El blog de Maria

Are you a non-European Economic Area (EEA) citizen who has purchased or is considering purchasing property in Spain? Do you aspire to reside in Spain but are challenged by the limited visa options for non-EEA nationals? If so, keep reading to discover Costaluz Lawyers' innovative proposal for a new visa type: the Spanish Property Owners Visa.

This idea excites you, doesn't it? Show your support by signing our petition. We are on the verge of reaching 5,000 signatures, a milestone that will significantly amplify our voice in the media and persuade the Spanish government to consider this new visa!

But first, let’s delve into why this visa is so crucial.

Investment Destination of Choice Spain is a top destination for foreign property investment, especially among Northern Europeans. Non-resident buyers make up about 19% of all property transactions in Spain, a figure that soars in tourist-favored areas like Costa del Sol, Costa Blanca, Balearics, and Canaries.

Did you know? A minimum investment of €500,000 in Spanish property is required for a Golden Visa.

Who’s Buying in Spain? The majority of property buyers are from the EU, with British nationals leading the group before 2021. Post-Brexit, the non-EU market share, including British buyers, has risen significantly, altering the dynamics of property investment in Spain.

Post-Brexit, British nationals can only spend 90 out of every 180 days in Spain without a residence permit.

Economic Impact of Property Investment Foreign property purchases in Spain contribute immensely to the economy, encompassing the purchase price, taxes, fees, and ongoing maintenance costs.

More Spending by Non-EU Nationals Non-EU nationals stand out as major economic contributors through their property investments, spending more on average per square meter than other non-resident buyers.

Straightforward Purchase, Complex Residency While buying property in Spain is relatively easy, obtaining residency for non-EU nationals is complex and demanding.

Visa Options for Non-EU Nationals Currently, non-EU individuals looking to retire in Spain can opt for either the Golden Visa or the Non-lucrative visa, both requiring significant financial investment or proof of income.

SIGN NOW Our Proposed Solution: The Spanish Property Owners Visa Recognizing the key role of non-EU buyers in Spain's property market, Costaluz Lawyers proposes a new visa, specifically for non-EU property owners seeking residency without the hefty financial requirements of existing visas.

Requirements for the Spanish Property Owners Visa:

1. Ownership of a property in Spain for a minimum of three years before effetive Brexit date: 1 de mayo de 2021.
2. Proof of a monthly income of at least €1,130: National minimum wage
3. Standard health insurance and criminal record checks would also apply.

A Win-Win Scenario This visa is beneficial for both parties:

• Spain enjoys increased investment and spending by these new residents.
• Non-EU nationals gain easier access to Spanish residency.

Our Goal : With nearly 5,000 signatures, our petition is gaining momentum and attracting media attention. We aim to influence the Spanish government to make this a reality. Sign and share the petition to support non-EU property owners in Spain.

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SIGN NOW Thank you!

Investing in rustic land in Spain is not just about owning a piece of the breathtaking Spanish countryside; it's an adventure into the heart of Spain's diverse landscapes. However, the journey can be complex, especially for our international community members. Here's an extended guide to help you navigate through this process, including managing easements.

1. Verify Land Ownership Start by confirming the legal ownership of the property. Obtain a ‘nota simple’ from the Land Registry, which provides ownership details and any legal burdens like liens or easements. This step is vital for ensuring a smooth transaction.

2. Draft a Deposit Contract (Contrato De Arras) A ‘Contrato de Arras’ is a common practice in Spain, involving a deposit that acts as a commitment to the sale. It’s important to understand the legal implications of this contract, as outlined in Article 1454 of the Spanish Civil Code.

3. Cross-Check Property Details Ensure the property's physical attributes match the descriptions in the contract and the Land Registry. Consider hiring a surveyor for an accurate assessment.

4. Finalize the Purchase Contract and Notarize Sign the purchase contract in front of a notary. This step is essential for the legal transfer of ownership and provides a legal safeguard.

5. Register the Property Though not mandatory, registering your property is highly recommended. It serves as legal proof of ownership and is crucial for any future transactions.

6. Managing Easements on Rustic Land Rustic land investments often involve easements. These can include right-of-way, water rights, right-of-view, and agricultural or grazing rights. Understanding these easements is crucial for avoiding future disputes.

 For more in-depth information and personalized guidance, visit our website. You can find the link in the bottom right corner of this post. Our team is dedicated to assisting you through every step of your rustic land investment journey in Spain.

Stay informed and make your investment a success!

María

Costaluzlawyers

We're excited to share a crucial update regarding Spain's tax regulations that could significantly impact many of our members. On December 13th, Order HFP/1338/2023 was issued, bringing pivotal changes to tax rules, particularly for those under the Special Regime for individuals relocated to Spain. We've broken down these changes to make them easily understandable.

1. Introduction of New Approved Models: 149, 151, and Updates to IRNR 210

This regulation introduces Form 151 for the Personal Income Tax Return and Form 149 for Communication for taxpayers under the special regime. Also, there's an important modification in the IRNR form 210, particularly relevant for income declaration without a permanent establishment.

2. Form 151: A New Era for Personal Income Tax Returns

Form 151 is a game-changer. It must be filed electronically for the 2023 tax period (filing in 2024). The deadline coincides with the general Personal Income Tax deadline. For direct debit payments, filing starts early and ends five days before the period's end.

3. Form 149: Keeping Track of Your Tax Options

This form is pivotal for exercising the special taxation option and must be filed electronically. It covers both the main taxpayer and associates, with specific deadlines for filing the option, waiver, and exclusion, and for communicating the end of the posting.

4. Refinement to IRNR Form 210

There's a notable modification aimed at enhancing self-assessment management, especially concerning property rental income. Taxpayers are now responsible for making the self-assessment directly.

5. Implementation and Documentation Requirements

These changes are effective from December 16, 2023. The order details the necessary documentation for each communication, marking a significant step in Spain's tax regime.

With the introduction of Forms 151 and 149, and modifications to IRNR Form 210, the tax framework for those relocated to Spain is evolving. It's essential to be aware of the new electronic filing requirements, deadlines, and the direct role in self-assessment.

Have Questions? Visit Our Website

Navigating these changes can be complex. For more detailed information and assistance, we encourage you to visit our website. On the bottom right corner of this blog. You can also leave your questions at this blogpost! 

Stay Informed, Stay Compliant!

Best wishes always!

Maria de Castro

"Banks’ Role in Overseeing Off plan developments Payments: A Complex Stance from Spain’s Supreme Court"

Introduction:

• Recently, Spain's Supreme Court has been clarifying how banks should control money given to them for building projects that haven't started yet.
• The Court's decisions show two main ways of thinking: one that sticks to the original law (Law 57/68) to protect buyers, and another that seems to favor banks, making it easier for them not to follow this law strictly.

1. How Banks' Responsibilities Have Evolved:

• A 2019 court decision said that banks shouldn't have to dig too deep into where the money from buyers comes from, especially when there are middlemen involved. This was a bit of a change from an earlier 2015 decision, where the court said banks need to watch over any deposit paid into a developer´s bank account in advance for homes under the law.
• Later rulings, including one in 2020, stated that banks aren’t supposed to be overly responsible for checking every payment made to developers, especially if someone else is making payments for the buyer.

2. Sticking to the Original Idea of the Law:

• However, some other court decisions have stuck to the original idea of the law. For example, a 2023 ruling mentioned that the bank knew about some payments made into an off plan developer´s bank account and therefore should be aware of where the money they receive is coming from.
• More rulings in 2021 and 2022 supported this idea, saying banks should know when they’re getting down payments for houses.

3. A Practical Look at Banks' Responsibilities:

• Some court decisions give good examples of how banks should understand their role. For instance, a 2019 ruling pointed out that in a small town setting, a bank should know what’s going on with the money for house projects.
• Another ruling in 2019 agreed, saying that banks should be able to identify advance payments from homebuyers.

Conclusion: Keeping an Eye on Money and Legal Responsibilities, and the European Commission Involvement:

• The court’s decisions on how banks should handle advance payments for homes that aren’t built yet are still changing and have different shades of interpretation. It's important to get these rules right in the future to protect people who pay in advance for homes.
• Under a 1993 anti-money laundering law, banks must watch over financial transactions, including those in real estate. They need to know who's involved in each transaction to ensure everything's transparent and legal.
• Some court rulings that don’t make banks check these payments closely can be questionable. They seem to go against common sense and might even need a look from a constitutional perspective.

Costaluz Lawyers is actively filing complaints to the European Commission. They argue that the Supreme Court's doctrine contradicts the European Union law in matters of contract and consumer rights. This involvement indicates a significant concern over the Supreme Court's interpretation and its alignment with broader European legal standards.