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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche.

Legal tip 173. Guarantees for building deffects. Part II
30 October 2009

 There are three years to claim against Insurance company of the developer for  vices or defects of the construction elements or facilities that  cause the failure of the conditions of habitability: 

The conditions of habitability are the following ones:

a.Higiene, health and environmental protection, so as to achieve acceptable conditions of safety and tightness in the indoor environment of the building, which do not deteriorate the immediate environment, ensuring a proper management of all types of waste. 

b.Protection against noise, so that the perceived noise does not endanger the health of people and enables them to satisfactorily carry out their activities.

c. Energy save and thermal insulation, so as to achieve a rational use of energy necessary for the proper use of the building.
d.Other functional aspects of the construction elements or facilities to allow a satisfactory use of the building. 
( For part I in this serie of articles on Building deffects please click here)
Barcas en el río por Elsemiguel.
Ter River, Cataluña, Spain by Elsemiguel at

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Legal tip 172. Guarantees for building deffects. Part I
29 October 2009


Timeframes for claims against building deffects depending on type of damage:

a) For 10 years, of material damages caused in the building due to defects or vices that affect the foundations, supports, beams, floor structure, charging wall or another structural elements, that directly compromise the mechanic ressistance and the stability of the building.

b) For 3 years, of material damages caused in the building by defects or vices of the building elements or the installations that produce the breach of the habitability requirements of the provision 3,1,c.

c) The builder will also answer for the material damages by vices or execution defects that affect the elements of finishing of the works within a year deadline.

More tomorrow on Article 3. of General Building Act : Basic requirements of building.

As an apettizer on guarantees for these liabilities, happy to say that there is a legal obligation for developers to sign an Insurance Policy for the coverage of these liabilities and that this legal obligation is controlled by Notaries and Registrars under legal requirement of this same Act.

 Early morning autumn light on lake in  Banyoles Lake ( Cataluña), Spain by PTorrodellas at

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Legal tip 171. 11 months can be a permanent rental contract
27 October 2009

Yes, it sounds strange or wrong but it is not.

Let me clarify:          

Spanish Law protects specially those renters of a home and try to provide permanence to them as a family; that is why these for-home-reasons rental contracts are benefitted with the right of yearly legal extension if decided by the tenant for a period of 5+3 years.

And how do I know my contract is a seasonal or a home contract?

EASY: It needs to be mentioned or infered in the text of the contract.

Under Spanish Law, what makes a contrat a seasonal or a permanent home contract is not the  time agreed  but the intention. There is a  widespread misconception about this as it is assumed that a  rental contract  with a time period under 12 months is a seasonal contract and therefore the tenant will not have legal rights to contract extensions up to a period of five + three years. IT IS WRONG.


You can sign a contract with a rental period of 11 or even  3 months and,  if you do not explicitly mention that is a SEASONAL contract,  once the time period expires, your tenant will inmediately have rights for the extension of the rental contract for a year more and, what is even worse... will have this right for  5 years + 3 years.

The only way to kick the persistent tenant out would be if  you or a descendant needs the house for living purposes, which will have to be proved by you.

On the other side, you can sign a contract for 2 years and being stated is a SEASONAL contract, once the 2 years period is over, the contract obligations are all over.

So..... do not just look to the numbers... look to the words ( SEASONAL vs HOME)

Spanish autumn harvest by Slow Spain at




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Legal tip 170. 4 conditions to pay 0 € for IHT in Andalucia
26 October 2009

As expressed in a recent Andalusian decree dated September 2009: the reduction of the taxable amount will be total, which means you will be paying zero as IHT if:

Condition One) Being a resident in Andalucia:

Condition Two) you are, in respect to the deceased:

Group I: A descendant or an adopted children under twenty one.
Group II: A descendant or adopted children of more than twenty one years/old, a spouse, an ascendant or an adopter.

Or assimilated:

a. Domestic partnerships registered within the Register of partners of the Andalusian region. ( regarded as spouses)

b. Persons subject to a permanent or pre-adoptive foster care. ( regarded as adopted)

c. People who make a permanent or pre-adoptive foster care ( regarded as adopters)

Condition Three) IHT Taxable amount does not exceed 175,000 euros.

Condition Four) The preexisting patrimony of the taxpayer falls within the first tranche of the scale set out in Article 22 of Act 29/1987 of 18 December. (402.678, 11 €)

The amount of the reduction of the taxable amount will consist of a variable amount whose application determines a payable amount of zero.

Handicapped will pay 0€ if the IHT taxable amount does not exceed 250.000 €.


 Autumn. Aranjuez. Spain by Martius at


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Legal tip 169. Ban on trans fat in Spain
23 October 2009

The bill on Food Safety and Nutrition prepared by the Spanish Agency for Food Security and Nutrition (AESAN) under the Ministry of Health and Social Policy,  has set at 2% the maximum of trans fat that may contain food marketed in Spain. The objective of this measure is to prevent the rise in obesity and reduce the risk of cardiovascular disease.

Spain is then becoming one of the first countries worldwide to reduce them after California and New York, which are not countries.... by the way :)  having already banned them completely.

Two very civiliced partners in Europe: Austria and Denmark have also expressed their intention to limit its content ( whih makes me proud of my country) also at 2% - and therefore could provide the basis of general rules at the European Community level.

The bill is currently in a public hearing phase to address the recommendations and objections of those involved (consumers, food producers and autonomous regions). We, consumers are the higher voice in my opinion.... so say your word!

After this, it must be approved by the State Council and, after obtaining the approval of the Council of Ministers, would begin its parliamentary process with the objective that the Law can be passed "as soon as possible.

This initiative to curb trans fat is part of a series of actions undertaken by AESAN to improve the healthy diet of the Spanish, such as reducing the salt content in bread or promoting fruit and vegetable consumption among children.

And I wondered? Were not us famnous for our healthy mediterranean diet? Is this part of the loss of identity that Spain is suffering.

Luis, please... keep posting your low fat recipes here and save us!



Autumn light near Macaners, Cataluña, Spain by Ptorrodellas at

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Legal tip 168. 3 odd wonderful numbers in favour of consumers.
22 October 2009

I always liked odd numbers, but, I have enjoyed  specially  today these ones in this Royal Decree (on consumers’ protection regarding information to be provided on house sales and rentals):

Article 3.

1. The offer, promotion and advertising for the sale or rental of houses needs to be made in a way that will not  induce or mislead consumers, by affecting their economic behaviour, and will  not silence fundamental data of the object under publicity.

2. The data, characteristics and conditions related to the building of the house, to its location, facilities, acquisition, use and payment included in the offer, promotion and advertising will have contract nature even if not expressly mentioned in the contract.

Article 5.

1. When homes are promoted for sale, the following information will also be available to the public or to the competent authorities…:


5. In the event that the apartment and common or accessory areas are not totally built shall show clearly the delivery date and the stage of the building works at every moment.

Article 7.

In the case that the house is not completely finished, there must be available to the public and relevant authorities a copy of the document or documents which constitutes guarantees of amounts paid on account under Law 57/1968.

Even these regulations being in force since 1989 ( and by Supreme Court Case Law since 1977), developers were not shy at all when describing those paradises full with hotels, gardens, pools, playgrounds, safety systems, sports, commercial, leisure, educational centers… without any sense of real commitment towards publicity.

Again, now the fight is for consumers, a big and hard fight which will certainly bring measure to the off-plan business… in the future.

Autumn leaves in Banyoles ( Cataluña) by PTorrodellas at



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Legal tip 167. New Justice in Spain: approved!
21 October 2009

Yesterday, the full House of Representatives gave the green light to the Reform of the Procedural Act and the Organic Law that will further establish the effective operation of the new judicial office.
The text provides for the amendment of 16 laws and over 900 procedural articles. 
The Secretary of Justice  said that the new model of  judicial office is "a real functional transformation designed to optimize the performance of the Administration of Justice with the full incorporation of modern computer technologies and communication."
Olé ahí! Ya vamos p´allá
Autumn Colors by Xavier Fargas at

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Legal tip 166. No Bank Guarantee?: action against the Bank
20 October 2009

New action against the Bank in case of lack of Guarantees of Law  57/68
I had had a legal instinct for this since I started working in this type of cases , and have been trying to see, and to see, and to see and I finally saw:

If the Promoter opened a special account where they deposited the amount of your purchase off plan and the Bank did not give bank guarantees or checked out that those guarantees ( also possible through Insurance contract) existed,THE BANK IS RESPONSIBLE  in accordance to provision 1.2 of said Act  for the devolution of handed amounts plus legal interests if the works are not started or completed on time.

A great solution for many purchasers who lacks Bank Guarantee and a way to start building up a  more risponsable financial system! It is about time to this.

Madrid, November by Martius at

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Legal tip 165. When to claim against the Courts
20 October 2009

Dear Goodstich:

Here the conclusion of the study regarding delays of the Justice system and possible liability of the State:

 The State Council, the highest government advisory body   to whom  these assessments regarding  financial liability of the State for delays in the administration of justice are submitted to be followed valuates the State is liable when a debt becomes impossible to be cashed due to undue delays or irregularities of the working of Justice services if:

1. - DAMAGE: The debt has been claimed against the debtor and it has become impossible to collect (this would prove the actual damage: impossible collection

2. - CAUSE-EFFECT: This impossible collection is related, in a precise way to irregularities in the administration of justice, being evident that if Justice had worked correctly the debt would have been collected.

So, in practical terms, if the collection of your debt is affected due to the creditor’s meeting, you need to wait till final result of the insolvency proceedings, and once proved you will not be able to collect the debt, you need to prove that the impossibility is clearly and precisely an effect of the Courts delay. A big job in terms of proving.


 Autumn colors in Delta del Llobregat ( Cataluña), Spain by Ferran Pestaña at

































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Leghal tip 164. Returns and refunds in stores
16 October 2009

Stores are not legally obliged to make returns of products in good conditions, but most of them accept it as a matter of customer care.  

When do they have to return my money?

If there is a manufacturing defect prior to the sale, money needs to be returned: you can refuse vouchers or cheques. If you paid with a credit/debit card, the return will be made to the card.
One important tip: If you have a publicity material of a store which affirms the devolution of a product if the client is not satisfied, or find the same at at cheaper price…. Play it, use it as they are binded. Publicity is not a game or a tale.
For instalments buying, you need to verify the inclusion of a clause that enables the cancellation of the purchase contract within three days after delivery of the item.
For doorstep and distance selling, there is a seven days period from receipt of the good to return the product.
 Autumn Forest Pathway, El Escorial, Madrid by Lawmoment at

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Legal tip 163. A guide for successful house-buying. Part V
14 October 2009

You can see related information in number I, II, III and IV of this serie ( maybe a good reading for getting slept)

Necessary documents for mortgage application 
- Personal information: Passport number or residency card. If you are married the Bank will ask you about the financial agreements of your marriage. This is because in some cases, in order to constitute the mortgage loan, the consent of the two married people is needed.

- Financial information: 

 If you are an employee: recent pay slips, tax returns and wealth tax. 
 If you are self-employed: Income and Wealth Statements. Proof of income and past income tax   instalments payments and VAT.
- Information on the property to be mortgaged:

1) if you are buying direct from the owners: photocopy of the deed of sale
2) Purchase from developer: photocopy of the sales contract
3) If you want to build your own house:  land deed, license and Work project.

What information the financial institution needs to give to me? 

A) Information booklet:
which will provide the basics of the loan: term, interest rate, fees, commissions and all charges that will be borne by the customer. This booklet, which is regulated by the
Order of transparency of financial conditions of mortgage loans, dated 1994, will allow you to compare different offers.
Once you choose the one you want, ask the financial entity to issue a “Binding Offer” (oferta vinculante) .The entity will analyze your request and will respond at short notice, after verifying the situation of the property in the Land Registry and completing the appraisal of it.

B) Binding offer:  is a document that will run at least for ten days, and will specify in detail all elements of the loan:

1. Amount and  way of delivery of loan
2. Repayment: number of instalments, frequency of payment, amount and payment date of the first and last instalment, commission for partial early repayment
3. Interest: nominal, if it is fixed or variable, and in the second case, how, when and depending on which index will be changed and the reference index that will be applied.
4. Commissions, opening fee and commission for -early redemption in whole or in part, this latter only applies if happens.
5. Other costs that are borne by the borrower: property valuation, notary and registration fees, etc...

6. TAE

It is important to examine binding offer because its content is what will be written in the mortgage deed
( to be continued)

Autumn in Asturias, by Caliaetu at

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Legal tip 162. Non-residents will pay less for capital gains on savings
13 October 2009


Non-residents pay less for capital gains on saving

Rich people having their tax residence outside of Spain will pay less tax than residents in the country for the same gains.
 The Government has decided to exclude high-income non-residents of the new super rate of 21% for fear of a possible disciplinary sanction of the Commission, as explained by official sources of the Ministry of Economy and Finances.
The Government has approved that if a resident in Spain gets capital gains on financial investments in excess of 6,000 euros, this will be taxed at a 21% compared to 18%´s current rate. This will result in an increase of 16.6%.
However, if the residence is outside of Spain, even in a tax heaven, the fund manager will withhold 19%, the same rise of one point for Spanish residents with less income.
 That percentage represents an increase of 5.5% for non-residents, which the government of José Luis Rodríguez Zapatero considers more reasonable than the 16.6% for their Spanish counterparts.
The maximum rate of 19% is far-fetched in the draft Budget Act of 2010, announcing, 'with effect from 1 January 2010 and remaining in force indefinitely, "a serie of amendments to the text of the Act of Non-Resident Income tax”.
beneficiaries of this lower rise are not only natural persons resident outside Spain but  Investment funds or foreign entities operating in Spain which earns dividends, capital gains or interest out of cession of goods´operations.
We aim to be cautious with the judgments of the Court of Justice of the EU against previous tax measures, the Ministry of Finances justifies.
They allude to, say; the decision dated the last day 6 of October, which condemned Spain to infringe the free movement of capital. The EU Court supported the European Commission, who claimed that Spain implemented until 2006 at least 15% to capital gains of the Spanish residents, while non-residents were subjected to a single rate of 35%.
In the tax reform that the Government has just announced, the positive discrimination is not for the Spanish, but for those who live outside. 'The real explanation is the fear of the government to capital flight, "according to several tax experts agree consulted by this newspaper.
In economic crisis, any measures that discourage investment in stock markets or in Spanish financial products are negative. That is the reason which has been explicitly recognised by the Treasury to not alter, for the moment, the taxation of the so-called Sicav, the Variable Capital Investment societies, attributed to the higher wealth of the country.
Direct translation of new published in El Mundo, 12-10-2009 by Maria L. de Castro.
 Autumn views of Hotel Real and Palacio Botin, Santander, Cantabria, Spain by Xavier Fargas at

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Legal tip 161. Andalucia government´s help to buy a property in the region
13 October 2009

The latest edition of the "Salón Inmobiliario del Mediterráneo," which was held in Malaga during the last weekend, is the most palpable proof that Spain is today a “street market” of houses, so come and see, come and buy!

Price reductions were there up to 34%. There were Marbella houses which were reduced by developers from 500.000 € to 250.000 € so.... take note and play hard for discounts.

As we explained last week, out of the Jimenez de la Iglesia report, there is a housing stock that was built on cheaper land that can defend great discounts  like those these days. So, now…  it is the real time to buy a house under the sun. I would also advise you to read Justin´s report on this.

According to one of the representatives of a  development´s company participating in Salon Mediterraneo, if an effort is made regarding the price, sales go smoothly; this same gentleman says selling a home a week on average even to foreigners, because there are some economies that have already been recovered from the crisis.

The Andalusian government has opened a register for the number of unsold homes in the region: it records already more than 70,000 homes. The regional councillor for Housing and Planning, Juan Espadas, recalled that the objective of this measure is to bring to surface all the unsold homes in order to find ways to "unblock the housing market”.

 The goal of this registry is to make the market available to the general public, so people can know what properties are available in each municipality and what the cost of them. The most of the registered units belong to Banks and other financial institutions.

The regional government plans to develop within 2-3 weeks an agreement on incentives with financial institutions.

The agreements will be focused on longer repayments periods to those buyers guaranteed by the Government.

I will keep posting on this initiaive by the Regional andalusian government.

Best Tuesday,



Alcazaba and Malaga from Gibralfaro by Sean Munson at

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Legal tip 160. International rights for senior citizens and more
09 October 2009

The International Day of Senior Citizens focused this year on the furthering of independence and the valuation of their contributions to society. Last year it was focused on the need to adopt new legislation for the explicit defence of their rights in the international level.

As the UN says, the elderly "play an increasingly important role" as volunteers through the transmission of their experience or as family caregivers. In the laboral area, their knowledge is also well appreciated. 
Richness that you elderly people can bring to the young stems is not just professional but also on emotional development, spiritual wisdom, parenting, marriage… A wealth of knowledge that we cannot miss.
 In Spain you are also the future because you will be requiring help, care, services. I am well aware that the elderly in Ireland, UK and northern Europe are and will remain being a large part of the economic future of the region where I was born, raised and live in today: Andalucia.
Your presence will keep creating jobs and wealth as you have needs to be covered by us. Professionalism in the providence of the services will make the difference.  

Besides those jobs, you also have much more to offer to us in Spain:” your language, culture, literature, cuisine.....”  Some suggestions:

1.- Ask your Spanish neighbour or friend if she likes some “clasecitas” (lessons) of English, for her, her husband or her kids…… They will immediately love you! 

2.- Offer your bakery skills to our grandmas, go to your Asociación de Vecinos and propose

3.- Form a book club in english for teenagers... go to the local  high school and talk to the English teacher.

4.- Match young English students with Spanish ones for exchanges. Go to  the nearest High School and talk to the Master.

5.- Offer your help as mentor to the Andalusian government. It has a list of retirees to be mentors of young professionals.... Why do not you offer your qualification for this mentoring? It would be a great way to fill your time when retiring in Spain: nothing better than an English speaking mentor now that we urgently need the English language to do something as professionals.

Anyhow... have a Happy Puente. Monday as you all now is national Feast Day in Spain: Hispanity Day or Our Lady of Pilar.


 Basilica del Pilar and river Ebro, Zaragoza, Spain 2008 by  Paulo Brandao at Flickr

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08 October 2009

Trias de Bes´ El hombre que cambió su casa por un tulipán (The man who exchanged his house for a tulip. Premio de Hoy 2009.), on speculative bubbles along the history, sets a great compendium of symptoms and solutions as part of the analysis of human behaviour during the speculation fury:


Permanent caution
Draw conclusions by yourself
Envy of the benefit of others
Forget about what others earn
Money greed
Be content when having enough
Irrational logic
Remember the causes of the initial rise
Confusion between value and price
Calculate implied yields
Not admitting you do not know
Invest only in what is known
Excessive risk-taking
Not to get into debt or do it with caution
Belief in the infinite demand
Not to value assets just in terms of resale
Delay to come to terms with the loss
Selling at loss if necessary

 Human nature. I always think that a deep knowledge of human nuture is the best  compass in life. That is why classical philosophers readings need to come back to our hands.
A good lawyer, economist, doctor , architect or engineer always need a deep formation on humanities to never forget what the human being is and that human dignity needs to be at heart of every proffession and proffesional.
Yes, these are simple things but we very often forget about them in the middle of the everyday´s hurly burly.
Tuy river ( between Spain and Portugal)
Portugal reflections by Caneles at


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Legal tip 159. New money for Justice in Spain
07 October 2009

Yes, you are right, Spain has an old fashioned, frustrating Justice operation system and its final reform and increased budget for 2010 is a great way to start the morning with… specially if you are a legal operator.

The Justice budget for 2010, which also contains significant containment measures and savings in current expenditure, amounts to 1804.82 million euros, 218.5 more than in 2009.

The money will be allocated to the following:

• Improve the quality of justice by taking organizational measures, balanced and reasonable, seeking ways to help reducing the number of cases and the over-work-load borne by the courts. I would suggest arbitration systems to be promoted by being obligatory.

• Fully incorporate our system of justice to the information technology and communication, and adjust the Civil Registrar to the reality of a modern, agile and connected society as the Spanish. Well.. it seems our techno people will get some jobs in Courts.

• Strengthening freedom and security of citizens by updating the criminal law to respond to new needs of protection. Watch the Internet! I would suggest

• Deepening the intergovernmental and international cooperation while maximizing opportunities of the European presidency. I am sure all you reading this blog will be.... happy about this?



Autumn Fern in Cantabria ( Spain ) by Artconsumer at


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Legal tip 158. Banks selling stock
07 October 2009

I saw a Bank executing a debt of 9.000.000 € against a young developer yesterday and even when not surprised, it  stirred me deeply.

Today I have read that Consultants Jimenez de LaIglesia has presented the first report that points how much the price of houses were inflated in Spain during the housing bubble and says that for the property sector to reach "equilibrium", the following reductions are needed:

-37% for house prices related to 2007 prices.

-53% for urban land related to 2007 prices.

-62% for developable land related to 2007 prices.

The report notes that "the  subprime problem in Spain lies in its greater extent, in the developable land”.

"We're talking about 150,000 million of euros in loans for developable land which today has a quite different value from when it was funded".

Regarding the fall of prices Jimenez LaIglesia has assured that "we're still halfway in the fall of housing prices”, as prices have dropped so far:

-15% for house prices related to 2007 prices.

-21% for urban land related to 2007 prices.

-25% for developable land related to 2007 prices.

Jimenez de Laiglesia has also ensured that Banks will end up selling all the housing stock.


Just those developers who purchased land in 1999, 2000 and 2001 will be able to defend such falls in prices and almost all of those purchasing land in 2003 or 2004 will not be able to defend those drops.

Therefore, he adds, "this  product is bound to be sold by  banks," who "can indeed assume that price drop, since it eliminates the margin of the promoter and may even lower the price somewhat and, although not making any earning, to restore liquidity”.


Visita a Cazorla by Maximo Lopez ( netsella) at




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Legal tip 157. A guide for succesful house-buying. Part IV
06 October 2009

I am not a mortgage specialist but as part of a buying process, let me give to you some concepts I have learnt from the Spanish Mortgage association. There is huge variety of brand names for mortgage loans depending to the public that Banks are trying to address. In reality the classification can be reduced to the following:

Fixed interest

The interest rate that is applied to the loan is permanent. They usually have a shorter repayment period and the commission for early repayment is higher.

Variable interest

The interest rate changes according to market prices. This rate is reviewed every twelve months generally. The repayment term is usually higher and the commission for early repayment can not exceed one percent.

Joint Interest

They have a fixed interest period and a variable interest one. The repayment period and the charges for early repayment are similar to those of variable interest. Risks are more diluted.

Fixed quota

The customer always pays the same mortgage fee regardless of fluctuating interest rates. The variable factor is the repayment period depending on whether rates rise or fall. Their main problem is uncertainty because the client never knows when he will end to pay the mortgage. In return for this he knows that the monthly mortgage is always the same.

Where do the Reference index come from?

They are objective indexes compiled  on a monthly basis  by the Bank of Spain. They can be found in almost every newspaper. Despite being  extremely important to calculate loan’s costs, we generally pay very little attention to them.

 Official indexes by Bank of Spain are:

- Banks Index: average of mortgage loan contracts of the Spanish market. Calculated with data that financial entities send to the Bank of Spain. It is expressed in TAE.
- Saving Banks Index: Same as above but for  Savings Banks. It is also expressed in TAE.
- Average rate of all credit institutions:  A compendium of the  two abovementioned.
- Interbank rate one year "Euribor": simple arithmetic average of each month’s values at the rate published by the European Banking Federation

- Domestic public debt return: the average financial return of Treasury Bonds.


Autumn ( Spain) by Martius at



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Europe is recovering: so... come to Spain!
02 October 2009


The European Commission has released the latest economic sentiment index, which in the eurozone reaches 82.8 points, after growing  in two points during the last month. In the whole European Union, this index increased 1.6 points and stood at 82.6. The figures from both regions reflect the sixth consecutive increase in this economic index.

Despite the rise that the latest data highlight , the European Commission itself ensures that these levels are below historical averages and that the increase recorded in September is the lowest since it began its recovery in April. Moreover, the increase in the economic sentiment index did not occur equally in all member countries. While France and the Netherlands rose by 4.7 and 4.5 points respectively.
Spain suffered a deterioration of -1.2 points.
 In addition, the Business Climate Indicator (BCI) also improved in the euro area and is situated in September at -2.07 points. The data have slowed its upward path with respect to previous months, reflecting very low levels when taking into account its historical development. Although improved BCI reflects a general trend of improvement in production in recent months, their contention still suggests that the growth of industrial production in August was largely negative.
So, it seems you will start getting ready to come back to Spain for your holidays soon again.
Better services for foreign tourists and foreign residents in Spain, we need to offer more than just sun , beach, siesta, paella and sangria. That is definitely  our main future source of richness... if we make it happen and it happens proffessionally.
What do you think?
 Montseny ( Gerona), Cataluña , Spain by Elsemiguel at

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Legal tip 156. A guide for successful house-buying. Part III
02 October 2009

SeePart I and Part II


Some tips on mortgage loans

A mortgage loan is that in which besides the personal guarantee, a property is affected as a guarantee of repayment. This is what may them have lower interest rates than other forms of loans with lower collateral. The importance of the investment (housing) also allows the repayment term to be longer for  a greater ease of payment.

Before you apply for a mortgage loan it is important to know the appraised value of the house, which needs to be done through licensed appraiser.
Once you know the appraised value, the next aspect to need to consider is  your incomes for which our advice is not to over tighten the belt (no more than 30% of your income must be spent on housing)

The mortgage loan usually covers 70% to 80% of the price of the appraisal.

Regarding the maturity timeframe, please note that the longer the time the higher the interests.

It is essential to find the perfect combination of interest rate and  maturity term for the operation to be coupled to your real possibilities.

The opening  fee ( comisión de apertura) is the price that the entity charges you for evaluating and processing the loan, it is usually a percentage of the loan amount with a minimum amount.

The fee for early repayment is a form of insurance which covers  the risk assumed by banks by the fact that the operation can be terminated anytime by the will of the customer. For loans with variable interest, this commission for  early repayment is limited by law to 1%.

The commission rates that banks passed on to the client must be reported to the Bank of Spain and is available to anyone who wants to see it.

What is the TAE? The TAE ( Tasa Anual Equivalente),   annual percentage rate, is the result of a mathematical formula that incorporates the nominal interest rate, fees and timing of the operation.
When comparing mortgage offers based on the TAE, always  take into account that  they all are not cut with the same pattern: compare similar loans, a fixed rate on with another fixed rate one, a variable with variable, and within the variables, make the comparison with those which have the same reference index.
( to be continued)
Have a joyful weekend!
Related services by CostaLuzLAwyers here andhere
Albaicín, Granada, Spain by rwchicago at


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Calendar of Real Estate fairs. Autumn. Spain
01 October 2009



Up to 13 major developers will gather at the fourth edition of the event  where they will be showing their developments.

This is the second time the Capital city hosts the show after the editions in Seville and Malaga.

* Date: 1 to 4 October (11 to 20 h.)
* Promote: Azenta Communication
* Scope: National (free entry)
* Place:  
Madrid. Parking outside “El Corte Inglés” in Paseo de la Castellana
* Developers attending : Afirma, Avanco,  Grupo Gestesa, Grupo Pinar, Habitat, Hercesa, Monthisa, Proinlasa, Promhogar, Pryconsa, Royal Urbis, Sando Inmobiliaria and Vallehermoso.


The 'stock' of houses in the
province of Malaga is of 20,000 units. The 6th edition of SIMED will have same formula as previous years and the exhibiting companies will make available to the public their best deals on apartments located in the province of Malaga. Last year 16,000 visitors attended and had access to a supply of 3,600 dwellings.

*    Date: 9 to 12 October
* Promote: ACP (Provincial Association of Builders and Developers of
Malaga) and FADECO (Andalusian Federation of Property Developers).
* Scope: Provincial
* Place: Palacio de Ferias y Congresos de Málaga (Málaga)
* Area:
8260 meters square
* Developers attending: Alei, Edipsos, Ansan, Salcido, Myramar, Park Malaga, Salsa INMOB., Proquinter, Reayl, Vallehermoso, Monthinsa, Safety and Mediterréno Mediterranean.


3) BARCELONA MEETING POINT International Symposium

At least 250 developers, including national and international, will meet in the XIII edition of Barcelona Meeting Point, Fira de Barcelona,  focused in professionals  and sectoral conferences. 130 speakers.
* Date: October 27 to November 1
* Promote: Barcelona Meeting Point and the Consortium of the Zona Franca de Barcelona
* Scope: National
* Location: Fira de Barcelona
* Confirmed Exhibitors: 250 




4) SIMA AUTUMN: Madrid Real Estate Exhibition

This year the Salon Inmobiliario de Madrid repeats again in Ifema , following the good numbers 63,000 people and lines at the booths of the main developers of the springtime  edition this year.
The organization has confirmed over 60 exhibitors.

* Date: from 22 to 25 October
* Promote: Planner Reed
* Scope: National
* Place: IFEMA Fairground, Hall I (
* Area: More than
5,400 square meters
* Speakers confirmed: 62
* Web:



1) OURENSE Real Estate Exhibition 2009

Homes located in urban or rural hinterland and the coast in Galicia and to the best discounted prices.

* Date: from 7 to 15 November
* Promote: Expourense, Xunta de Galicia, Inorde, Concello of Ourense, Caixa Nova, House Ourense, Ourense Enterprise Confederation
* Scope: Regional
* Location:
* Area: More than
5,400 square meters




Starting November, the 13th , pavilion II of the Institución Ferial Alicantina will host this event for price reduced houses both in
Alicante and the rest of the country.

* Date: from 13 to 15 November

* Promotes: Feria de Alicante
* Scope: National
* Place: IFA Institución Ferial Alicante. Pavilion II
* Area: More than
5,400 square meters


Up to 240 exhibitors will gather at the Fair of Valencia to be held between 20 and 22 November in the IX Mediterranean Real Estate Fair, which will be supported by local government bodies, financial institutions and professional associations.   

* Date: 20 to 22 November
* Promotes: Feria de
* Scope: National
Place: Feria de Valencia (
* Confirmed Exhibitors: 240
* Area: More than
5,400 square meters

Costaluzlawyers available for legal advise.


Parque de Montseny, Gerona, Cataluña, Spain by  Elsemiguel at  




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