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El blog de Maria

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

Management tip 21. PostCrisis values: simple proposals XV
30 June 2010

Today´s: Trust

A quote by a great person:

" He who does not trust enough, will not be trusted" by Lao Tzu

Trust from directors to members of the team ( starting by this and following this order), from members of the team to directors, among members of the team is like sap for plants.



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Legal tip 309. Law 57/68 and Public Order
30 June 2010

For Ruth specially, as a reply to Bank of Spain:

Law 57/68 came to establish measures for the protection of public order  within the field of off-plan sales. Its preamble reflected this with absolute clarity and boldness. With expressions such as:

-Serious impairment of social life

-Protection of high interests of the community

-Public interest

-Protection of the weaker party that advances confidently large quantities for housing purposes.

-Need for the establishment of general rules: mandatory, non-waivable, preventive, to ensure real and effective application of these payments to building activities, as well as to secure the refund of said amounts plus legal interests in the event that constructio is not started or finished on time.

Specific and clear obligations which were  established:

a)     Obligation to developers to receive advanced amounts through banks or saving banks

b)     Obligations to Banks to audit these amounts are allocated for building purposes, and

c)     Obligations to Banks to verify on the existence of Bank Guarantees/ Insurance Policies for the refund of money to buyers in case the building project is delayed, 

This is why, rights contained in this Law for the protection of purchasers ( whatever their kind or origin)  are by mandate of article 7 of said law compulsory and cannot be waived by vehicle of private contract or agreements.

Problems regarding the existence of  57/68 Bank Guarantees or Insurance policies are not a matter of private, free relationships between Bank and client. They are, they have been,since 1968, a public order affair.

Best regards,


Forged furniture. Typical of andalusian patios by Jesuli at



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Legal tip 308. Binding offers by financial institutions
25 June 2010


If you, as an individual, have applied for a mortgage in order to buy a home and the amount of the mortgage is under  150.253,03 euros, once negotiations have been finished between you and the Bank or Finantial institution they need to give to you a document called " Binding offer" (oferta vinculante) . This document is  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 rates: 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 
 Caños de Meca, Cadiz, Costa de la Luz by Chusoart at


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Legal tip 307. Andalusian Government for european clients
24 June 2010


The Spanish Homes Network is a commercial platform created by students of the Instituto de Práctica Empresarial ( IPE)  for the restoring of confidence of Europeans to buy homes in the Spanish and Andalusian Mediterranean, providing full legal guarantees. The IPE is supported by the Junta de Andalucía. 

The support for this measure by the Junta de Andalucía is also trying to output the existing housing stock in the region.

Good services for daily life of future buyers of these properties are also needed. They cannot live in the middle of nowhere. They need good professionals to care for their inmediate daily needs, who need to be able to communicate with them.

Languages study reinforcement in Andalucia. English for proffessional courses.
Have a good day! Maria L. de Castro
Sunset in the Bay of Algeciras by Roberto Pecino at

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Management tip 20. PostCrisis values:simple proposals XIV
23 June 2010

Today´s : Gratitude

A quote by a great  person: Most human beings have an almost infinite capacity for taking things for granted.  ~Aldous Huxley

Gratitude to each other, members of the team; to our clients, to our providers.... make the company environment light and fun. Self complacency and arrogance always  create a heavy and difficult atmosphere.

The CostaLuz Lawyers team



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Legal tip 306. European lawyers working in Spain: requisites
23 June 2010

At present moment, if we compare what other EU countries require from their law graduates to allow them to work as lawyers, we can see that in Spain it doesn’t work in our favour.  A law graduate from any EU country can work as a lawyer in Spain with their law degree endorsed by the Ministry of Education and Culture and after having completed certain aptitude tests which are not regulated by any specific standard and are overseen by each individual Bar Association.
Neither internships nor the joining of Legal Practice Schools are compulsory for european lawyers to be able to practice law in Spain.  However, a graduate of law from a University in Spain who wishes to further their career in any other European country will be subject to a series of tests and periods of internship.
In Spain today the only requirement is to be in possession of a law degree and to be registered with a Bar Association.  Incorporation into Spanish law of Act 98/5/CE took place by Royal Decree 936/2001 on the 3rd August which regulates the permanent practice in Spain of lawyers who have acquired their qualification in another member state of the European Union.   This allows those lawyers with a professional qualification from their country of origin who have requested registration with a Bar Association to practice law in Spain.  They will be subject to the same conditions and obligations as lawyers who have Spanish qualifications who are carrying out the same professional activity.
However, next year a new law, 34/2006 of the 30th October, comes into effect which will regulate the entry into the professions of lawyer and solicitor, published in the Official State Bulletin (BOE) of the 31st October, 2006 which comes into effect 5 years after its promulgation.  This states that the graduate must pass a training period and an exam in order to be able to work in the legal profession.
The regulation of entry into the legal profession is based on two requirements:  the completion of a practical course and a successful result in a final assessment which confirms the minimum knowledge requirements.
International Law fims formed by lawyers of every european country.... what a dream!
By Jesús Castro and María L. de Castro


Translation and edition assistant: Rachael Harrison

Sunrising in La Linea, border town to Gibraltar



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Management tip 19. PostCrisis values: simple proposals XIII
22 June 2010

Today´s: Integrity

A quote by a great person " The most important persuasion tool you have in your entire arsenal is integrity" Ziq Ziglar

When you fight for your own integrtiy every day, you do not need to worry anymore about your team´s commitment. You do not need to worry anymore about being credible.

This constant and sincere work on you own values and actitudes make your personal an family life, your proffessoinal career, your team life, your reputation to grow up in harmony as just one sole thing, the same thing.


The CostaLuz Lawyers team

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Legal tip 305. What is an executive judicial procedure in Spain?
22 June 2010

An executive proceeding is a short and privileged type of proceeding in which an outstanding debt appears as an accurate document, and this leads “instantly” to payment.

 The first difference between the executive proceeding and ordinary proceedings comes from the very nature of both systems, as in ordinary proceedings it is disputed whether or not some amount of money or something is owing, and the sentence is passed as either in favour or against.  It is a declaratory judgement.  In an executive proceeding there is proof, by way of an accurate document , that an outstanding debt exists which leads on to “instant” payment.

 Another difference is that in an ordinary proceeding the procedures can be very lengthy and in a summary proceeding they are quite brief.

 An executive proceeding establishes that there is a debt to settle, and this debt is recorded in an exact document, recognized by law, which leads to an appropriate enforcement and “forcibly” to the payment of said debt.  

The executive proceeding was established for the benefit of creditors, to enable them to recover their debts quickly and without them posing problems for their business.  For this reason the executive proceeding is a preferential proceeding.

Civil Procedure Act Provision 517.  Executive Action.   Plaintiff’s Right of Execution.

1.      Executive action will be based on an enforceable instrument

2.      Only the following documents will be enforceable:

i) The  final sentence ruling.

ii) The arbitral awards or resolutions.

iii) The judicial decisions which approve or validate judicial transactions and agreements reached throughout the process, accompanied, if necessary to prove its contents, by the corresponding testimonies of the actions.

iv)    The public deeds, provided that they are the first copy.  If it is the second copy then it is provided by virtue of a mandate and with the summons of the injured party, or the party at fault, or it is issued on behalf of both parties.

v)      The commercial contract policies signed by the parties and by the collegiate broker that is involved in the case, provided that they have certification in which the broker confirms the policy with entries in his financial records and the relevant dates.

vi)    Legitimately issued bearer or appointed bonds which represent the payments due and the outstanding coupons of the bonds, provided that the coupons match the bonds and that the bonds match the stock portfolio.

 The claim of falsification of the bonds during the proceeding, if it proves true, will not hinder enforcement, notwithstanding subsequent appeal to the enforcement which the debtor can present, claiming falsification of the bonds.

vii)  The un-expired certificates issued by the parties responsible for the accounting records, relating to the amounts shown in entries and which are referred to in the Securities Market Act, provided that it is accompanied by a copy of the public deed of the securities representation or, if the case may be, if such deed is necessary, of the issue which meets with current legislation.
Once the procedure has been carried out, the certificates referred to in the preceding paragraph will not expire.

viii)  The court order which sets out the maximum amount that can be reclaimed as compensation, imposed in cases where the accused appeals, or in acquittals or dismissals of disciplinary cases initiated by events which are covered by Compulsory Third-Party Insurance derived from the use of motor vehicles.

ix)    All other judicial verdicts and documents that, by order of this and other laws, are enforceable instruments.

  By Jesus and Maria L de Castro


  Translation and edition assistant: Rachael Harrison  

  Grazalema by Isabel Tajes García at Facebook       

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Management tip 18. PostCrisis Values: simple proposals XII
21 June 2010

Today´s: Revision

A quote by a great person: " Half my life is an act of revision"  John Irving

Revision is creation, a great energy comes out of allowing ourselves to revise our strategies, opinion, stands and certainties... the power of being free, open to newness and  not locked up into the conclusions we made when we have less or different data to be taken into account.

Daily revision is an act of healthy courage.

Good start of the summer.

The CostaLuz Lawyers Team

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Legal tip 304. Speed for the Civil Registry in Spain
21 June 2010

Justice Minister, Francisco Caamaño, presented to the Council of Ministers a plan to reduce the waiting times in the Central Civil Registry (CCR) which will permit the implementation of several measures to expedite the obtention of records whose delays affect the rights of citizens. 

A study by the General Council for the Judicial Power, the complaints of citizens on the Central Civil Registry has increased by 19.1%, mostly due to
waiting times, inadequate staff and the public opening hours. 

Although the transformation of the Central Civil Registry should occur in line with the new Law on Civil Registry, the Ministry of Justice has held that while this is not approved by Parliament,
it is necessary to find solutions in the short term and prepare the Registry for the entry into force of the new law. 

Among the main problems is the lack of computerization and updating of the entries and registration procedures, creating difficulty in managing the notable increase in demand happened in recent years. 

For this reason, in order to streamline its operations, the Ministry of Justice has prepared an emergency plan aimed at shortening waiting times, with a series of short and medium term measures: 

    * Among the short-term measures: temporary reinforcement of the workforce, expansion of the working day, enabling a specific email account for  issuing of certificates, restructuring of public care services to citizens and  training courses 
to encourage the specialization and performance of officers. 

    * Among the medium-term measures, the plan includes a group of them aimed at the interoperability of registration, promoting the linking of databases and the possibility that the certificates can be issued by the Civil Registry Network and not just by the Central Civil Registry. To this end, the computerization of consular records will be promoted, digitization of data, and also the reform of the Civil Registry regulations is being planned in order to improve management procedures.

Summer is here!


Grazalema by Mila Fazlinovich af Facebook

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Management tip 17. PostCrisis Values: Simple Proposals XI
18 June 2010

Today´s: Helpfulness 

A quote by a great person: “ You need to be aware of what others are doing, applaud their efforts, acknowledge their successes, and encourage them in their pursuits. When w all help one another, everybody wins” Jim Stovall

When as a director, you concentrate on positive aspects of people members of the team and help them to promote them, you are bringing to the team uncountable and unexpected richness: the first and most important one: the radical enthusiasm of the people, their full indetification with the work they are doing and therefore the most sincere commitment to the company.

The CostaLuz Lawyers Team



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Legal tip 303. A new one on tax discrimination
18 June 2010

 It is ilegal that the taxman required by the Non-Resident Income a 15 percent on dividends received by a pension fund based in the European Union while the same Spanish funds were exempt, before the entry into force of Law 2 / 2010, prohibiting it, according to the Audiencia Nacional in three decisions issued on 31 March 2010.

 Judge Gonzalez Calderon believes that by the simple fact of their residence for tax purposes these funds suffered discriminatory treatment because the return will always be a 15 percent lower than identical Spanish financial assets.
This discrimination on grounds of tax residency implies a limitation on the free movement of capital by nationality prohibited by the Treaty of the European Union, as pointed out by Case Law of the Justice Court of the European Communities.
Provision 56.1 of the EC establishes a prohibition to “all restrictions on capital movements between member States and between member States and third countries."
Finally, the Judge makes a reminder on the fact that the European justice Court stated that Spain breached provisions 56 and 40 of the agreement on  the European Economic Area,  when made a different treat to property earnings depending on whether taxpayers were residents or nonresidents.
Maria L. de Castro

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Legal tip 302. Congress pressing for keys back to Banks.
17 June 2010

The Commission for Housing of the Spanish National Congress approved yesterday (PSOE voting against it) a bill  (agreed between PP, ERC, IU and ICV) which gives three months to the government to assess the required regulatory reforms in order to allow foreclosures to be completely settled with the handing back as payment (dacion en pago) of the mortgaged house.

PSOE expressed his radical rejection to this measure ( through his spokesman, Higinio Almagro)  The rest of the groups gave their endorsement to the proposal, defended by the  ICV deputy Joan Herrera and promoted by the Platform of People Affected by the Mortgage. 

 It was also agreed a draft for the extension of the period of the moratorium in the realization of savings accounts to buy first residencies for one year more:  until December 31, 2011.

Really good news!

Next one to come: on Clarification of Bank liabilities related to the lack of Bank Guarantees 57/68!! why not? come on!


By Maria L. de Castro


Grazalema ( Cadiz) by Jose Luis Chacon Cordon at Facebook



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Legal tip 301. Will FIN-NET help?
16 June 2010

The claims service of Bank of Spain is part of the net work....... 
FIN-NET is a financial dispute resolution network of national out-of-court complaint schemes in the European Economic Area countries (the European Union Member States plus Iceland, Liechtenstein and Norway) that are responsible for handling disputes between consumers and financial services providers, i.e. banks, insurance companies, investment firms and others. This network was launched by the European Commission in 2001.
Within FIN-NET, the schemes cooperate to provide consumers with easy access to out-of-court complaint procedures in cross-border cases. If a consumer in one country has a dispute with a financial services provider from another country, FIN-NET members will put the consumer in touch with the relevant out-of court complaint scheme and provide the necessary information about it.

Read more on page How to use FIN-NET.

Information directly obtained from the FIN-NET website 

Best wishes,


Puesta de Sol en Zahora por corcuman.

Sunset in Zahora, Costa de la Luz, Cadiz by Corcuman at








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Management tip 16. PostCrisis Values: simple proposals X
16 June 2010

Today´s : Simplicity

A quote by a great person:  " The simplest things are often the truest" Richard Bach

Simplicity when negotiating, advising, litigating, communicating with clients, colleagues, oppponents brings a pleasant agility to the life of the company

The Costaluz lawyers team

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Legal tip 300. Banks properties for Banks liabilities
15 June 2010

 What about this?

As Banks and Saving Banks are, at the same time:

- The bigger property owners

- The bigger defendants on property claims ( out of liabilities expressed in provision 1.2 of Law 57/68)

Why not an exchange? Property lowered by the non guaranteed amounts.

Banks acknowledging liabilities, all happy, economy running..



Playa de los alemanes, Tarifa, Cádiz by josenatoniocubero at

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Legal tip 299. The Building Log Book
15 June 2010

A building log book is a set of graphical and textual documents that form the files and history of the technical, legal and administrative issues pertaining to a building.  It includes documentation of the work carried out and the final construction provided by the property developer before the building is handed over for use by the Owners Association.   From then on, all documentation generated during the use and existence of the building must be added to the building log book.

The building log book should contain, as a minimum:

1)      The plans.

2)      Any approved modifications.

3)      Handover Certificate.

4)      A list identifying all agents who have been involved.

5)      Instructions for the use and maintenance of the building and its facilities (including a maintenance plan).

6)      All recordings of receipt of goods, equipment and systems during construction.

Once all the above documentation has been received, the owner of the building, or in some cases the Owners Association, have an obligation to:

-          Maintain the documentation received from the property developer and pass on to future buyers if the building is sold.

Possession of the building log book allows the following:

-          The orderly use of all spaces, building elements and installations.

-          The carrying out of maintenance work and upkeep.

-          The implementation of further renovation work, repairs or restoration.

And in case of future problems or complaints:

-          Makes it easier to establish responsibilities in case of material damage.

-          Carry out indemnification for the material damages in the building caused by faults or defects in construction that are covered by insurance.

First occupation licenses must not be issued until the building log book has been presented to the respective town hall.

Jesús Castro and María L. de Castro

Translation/edition assistant: Rachael Harrison

Atlanterra, Costa de la Luz, Cadiz by Yme Bosma at


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Legal tip 298. Costaluzlawyers contest is open!
14 June 2010

 Costaluz Lawyers contest is open!


Project to be developed in Southern Andalucía (Campo de Gibraltar)




The Project is addressed to those people under 35 y/o who are interested in developing a service company which goal is to promote integration, support, wellbeing, encouragement, motivation and health assistance for Senior Citizens or retired people who plan to, or are already living in Spain and originally come from the Northern Europe, UK and Ireland retired people and would like to settle in the area of Campo de Gibraltar




To participate in this contest you must:

1.      Be less than 35 y/o

2.      Be Unemployed

3.      Have at least basic knowledge of both English and Spanish

4.      Fill out our Application Form

5.      Send us a Project Abstract outlining the Projects’ objectives and ideas to fulfil the required goals (see below).






The contest will follow a 2 stage selection. In the First Stage the Jury will study and choose those projects that fulfil the requirements and goals of the contest. The most voted promoters will be assisted in the preparation of a more profound study and analysis of the Project. The latter Projects will then pass to a second stage in which the most voted project will win the contest.


The winner will be assisted in drafting the Company’s set up plan and its filing in the Local Government’s entities in pursue of attaining financing for the company’s set up.

Application deadline is due on October the 31st 2010. The First Stage contestants will be announced on November, 15th 2010. The second Stage winner will be announced on December 22nd, 2010, same day of the National Spanish Christmas lottery.



Maria Luisa de Castro – Costaluz Lawyers Director/CEO

Steven Schaffer. Economist and Member of the Costaluz Lawyers team

Jesús Castro - Legal and company formation assistant and Member of the Costaluz Lawyers team.

we may invite some other remarkable people as members of the Jury soon...




1.      Project is to be located in the Area of Campo de Gibraltar (Cádiz)

2.      Comprehensive Project that include Health, Leisure, Foreign and Spanish Culture Integration activities. Clear company values.

3.      Staff to be hired will have to be half Spanish (English speaking) and half foreigner.

4.      Interview




The award will be a whole year of free legal and economic advice and consultation provided by the Costaluz Lawyers team, and will include among other: Legal aspects and financial requirements assessment for the Company’s set up, links and contacts with local providers and authorities, marketing and management tools,  accounts and taxes advise etc… All you need to run your company in Campo de Gibraltar.

Costaluz Lawyers will assist the winner in developing the idea, the project’s analysis (Viability Study) and the Company set up.

We will be posting the application form tomorrow. 

Velero in Bahia de Algeciras 



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Management tip 15. PostCrisis Values: simple proposals IX
14 June 2010

Today`s: Optimism

A quote by a great person:

“I am not afraid of storms, for I am learning how to sail my ship”. Louisa May Alcott

Learning through difficulties is enriching, challenging, real.... it brings a company to maturity.


The Costaluzlawyers team 

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Legal tip 297. Differences between dissolution of a company and creditor´s meeting status
14 June 2010

 The difference between dissolution and bankruptcy proceedings in commercial businesses.

I Dissolution:

This is a situation whereby a commercial business no longer has the legal capability to fulfill the purposes for which it was originally created and its survival is merely to resolve any ties established between the company itself and third parties.




The fact that there is cause for dissolution does not mean the sudden ending of the business.  However it is the start of the dissolution procedure which will end in liquidation.  The company will keep its legal status for the purpose of liquidation.




The aim of dissolution and liquidation is for a company to withdraw correctly from the market.   This procedure can be completed under the protection of the General  Companies Act.




The causes for the dissolution of limited companies are outlined in article 104 of the Limited Liability Companies Act of the 23rd March, 1995 (LSRL) and are almost identical to the causes for dissolution of public limited companies, according to article 260 of its regulatory Act.  The causes are as follows:



1.       Having completed the fixed term laid out in the statutes, in accordance with article 107.

2.       As agreed by the General Meeting with the requirements and the majority necessary for the modification of the statutes.

3.       For the closure of the company due to the impossibility to fulfill its business objectives or the cessation of the governing bodies of the company which makes the function of the company impossible.

4.       For lack of business activity, of that which constitutes the business objective of the company, during a three year period.

5.       As a consequence of losses which reduce the net wealth to an amount which is less than half of the social capital, unless the latter increases or decreases by the amount necessary  and as long as the statement of insolvency is requested in  accordance with the Act 22/2003 of the 9th July, regarding insolvency.

6.       If the social capital falls below the legal minimum.  When this drop is a result of non-compliance with the law, it will be subject to Article 108.

7.       For any other cause outlined in the statutes.



Bankruptcy Proceedings:

The assumed aim of bankruptcy proceedings is insolvency, which is a situation in which the debtor finds himself when he can no longer regularly fulfill his obligations or the company debtor’s wealth is insufficient to meet the requirements of all his creditors.  If the debtor himself submits the request, it is called a voluntary procedure, whereby he must show proof of the level of his debt and his insolvency, be it current or impending.  If the request is submitted by a creditor, it is referred to as compulsory proceedings and must be based on legal facts.



A statement of bankruptcy does not represent a cause for the dissolution of the company, although the company in question may voluntarily agree to the dissolution or to the some of the causes for the dissolution.  Therefore, although the bankruptcy proceedings do not automatically imply the dissolution of the company, the duty remains to dissolve it if at the moment of requesting the proceedings there is some other legal cause for dissolution.

Another eventuality is that, during the time frame of the dissolution, it is possible that losses have given rise to insolvency in accordance with article 2 of the Insolvency Law and it is necessary to request the declaration of bankruptcy.  In such a case it is the liquidator or the legally nominated administrator, if precautionary measures have been taken, who, after confirming insolvency in order to settle the company’s debts, assesses the legal obligation of requesting bankruptcy.




Therefore, if during the general meeting the company chooses dissolution or declares through the courts, it will then be the remit of the liquidators or the legally nominated administrator to decide whether to start bankruptcy proceedings or not, with the exemption of commercial administrators who are as yet not covered by article 281 LSA, but by article 5 LC.

By Jesús Castro










 Getares beach in Algeciras, Campo de Gibraltar




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Legal tip 296. Are you a Civil Rebel in Spain?
14 June 2010

Article 157 of the Civil Procedure Act provides that the Ministry of Justice has a Rebel Civil Registration System which is designed to avoid unnecessary reiterations by Courts when trying to find the unknown address of a defendant.

Ultimately, the aim pursued by the registration of the defendant in the Central Registry of Civil Rebels is to record through the necessary entry, that  investigations to find the address of the defendant have been fruitless  and therefore  that the Court can service the lawsuit to this directly through Edicts.

The Registry is not just useful to the Courts,  or to the claimer whio wants o service a lawsuit to the defendaznt, to save time and effort, but also to any citizen, who may at any time address it to know if he is registered and if any procedure is being developed against him/her.

Have a good week!

Jesús Castro and Maria L de Castro


Tarifa and Africa by Chodaboy at

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Management tip 14. PostCrisis Values: Simple Proposals VIII
11 June 2010

Today´s: Perseverance

A quote by a great person: " It always seems impossible unitil it is done" Nelson Mandela

Out of trying and trying and persiting and persisting again and again on legal formulas for the protection of the weaker part within the market forces ( the final consumer: the person),  we are just trying to bring some balance to the voracity that has been present in the off plan purchases world in Spain before the credit crunch.

So a balance landscape can come out of this battle!

Have a cheerful weekend



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Legal tip 295. Touristic apartments in Andalucia
11 June 2010

 Some important features highlighted by the recent Decree dated april 2010 on touristic apartments in Andalucia:

- This Decree is filling a gap existing since 1999 , when a National Law on Tousim asked Regions ( Comunidades Autónomas) to develop the required regional decrees on the matter. It was just about time, specially due to the density of the tourism activity in Andalucia.

- Principle of One company: The Decree pays special attention to the legal need for the existence of just one company in charge of the touristic management of the complex. This is a field where owners and touristic companies find lost of discrepancies, specially if property owners where not fully informed on this feature by the developer and were not aware of the touristic character of their units. We have some clients in this situation.

- The Decree regulates quality standards and classification of apartments accordingly. It also pays attention tro environmental sustainability.

- Conditions of the management companies are also regulated

-Importantly, mainly due to the increasing presence of international companies in our region, the Decree expressly makes a reminder of freedoms of members of European Union countries to develop these commercial activities ( as tourist management companies) in our region.


Grazalema, cuesta abajo por elarequi61.

Grazalema, Cadiz by elarequi61 at

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Management tip 13. PostCrisis Values: Simple Proposals VII
10 June 2010

Today´s: Identity

A quote by a great person: " Identity is such a crucial affair that one shouldn´t rush into it" David Quammen

Spain rushed into over building during the last 10 years before credit crunch... we are now kind of......... an abandoned prostitute.

The core of the current Spanish crisis is in our opinion a lack of identity. In a global trade, in a global world, where uni-culture, uni-fashion, uni-customs are massively promoted, uniqueness, identity and personality are going to become the most treasured values of a company, an organisation and a country.

Let´s be what just us, uniquely us can be.

Education and own brands to be promoted and exported: it is not all about public expenses cuts and taxes.

The CostaLuz Lawyers team



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Legal tip 294. Present and future regulations on Touristic apartments
10 June 2010




Last May 11, 2010 was published in the Andalusia Official Gazette the Decree 194/2010 of 20 April, on touristic apartments, aimed to regulate technical and services conditions of these units.

In Cataluña, the Professional association of  Property Administrators of Barcelona-Lerida has called on the Department of Tourism of the Generalitat to establish more control measures and inspections to punish those involved illegally in the sector of tourist apartments.

The Association has therefore requested to open a dialogue with industry representatives to tackle a new regulation that "really contemplates their problem in all its dimensions and provide effective solutions" 

We will be reviewing the Andalusian decree tomorrow



Las playas de Tarifa / Tarifa's beach por montuno.

Tarifa, Cadiz.,Costa de la Luz, Spain by montuno at

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Legal tip 293. A kind defaulter who will not leave
09 June 2010


New rules on procedure for evictions in Spain entered into force May 2010. 

1. - Claims related to unpaid rental fees.

 They will be decided by the verbal trial procedures, regardless of the amount demanded. Shorter procedure.

2 .-
Voluntary eviction

Court decisions when the tenant evicts the house voluntarily will prevent the case when this is not honoured by stablishing a clear deadline of no longer than 15 days for the forced eviction to be performed by Court officers.

By Jesús Castro

Tarifa Beach... por joliexis.

Tarifa, Cadiz, Costa de la Luz, Spain by Joliexis at

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Legal tip 292. Limitations to health tourism
09 June 2010

The proposal made by Spain was approved yesterday by Health Secretaries of the European Union.

Let’ set some examples on how this will operate in Spain:

Residents: New regulations do not affect this group:  in this case Spain receives from their countries of origin EUR 300 per month. The balance is beneficial for the Spanish Government, as the average expenditure on health is around 1,500 Euros.

Foreigners having an accident in Spain:  New regulations do not affect this group. Spain obviously assists these patients and the hospital bill is charged to the country of origin. The same happens in the opposite case, when a Spanish natinal have an accident in another EU country.

New regulations really affect two other groups, less frequent in practice:

a) A UK (as an example) national, resident in Spain who returns to the UK. Regulation 833, approved yesterday determines this treatment to be paid by the country he has contributed to during the most of his life.

b) A UK National, resident in Spain who wants to be treated in France ( as an example): Case law of the European Union establishes that it is the right of patients to choose where they want to be treated with some limitations allowed to be set by States. The Spanish proposal, which was finally approved in Europe yesterday, makes two requirements:
1. - Patients need to be indicated there by a doctor.
2. - The receiver center needs to be qualified by its country.

3. - Excluded those interventions that require hospitalization or very expensive treatments. The treatments need to be covered by the country of origin of patients and they cannot be experimental therapies.

The basis of these exclusions are that the EU guarantees free movement of patients, provided that this does not put at risk the sustainability of the national health systems or compromise 
their effectiveness.

By Maria L. de Castro

www.costaluzlawyers.esTarifa Beach por clumsy_jim.

Tarifa beach, Cadiz, Costa de la Luz, Spain by Clumsy Jim at









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Management tip 12. PostCrisis Values: simple proposals VI
09 June 2010

Today´s: Comradeship

A quote by a great person:

" The greatness of a craft consist firtly in how it brings comradeship to men" Antoine de Saint-Exupery

It is as simple as we complement each other, finish each other, re-create each other, discover each other.

To be practised in and outdoors of the team life: with the own team and with external colleagues and proffessionals.

The CostaLuz lawyers team

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Legal tip 291. Shape Banks: help to avoid future finantial crisis
08 June 2010

The European Commission has adopted a Green Paper on corporate governance in financial institutions and remuneration policies which launches a public consultation on possible ways forward to improve corporate governance mechanisms in financial institutions with the view of preventing future crises. The Green Paper is complemented by a Commission staff working document which describes and analyses weaknesses in corporate governance revealed by the recent financial turmoil. 

( Information directly obtained from the European Commission site

Oh yes!

Take part. Make history. Shape Banks

What about another Green Paper for the re-consideration of social functions of Banks and Finantial Institutions?

Do not abstain! Innovate!


Atardecer por Francisco M.. 

Atardecer, Caños de Meca, Costa de la Luz, Cadiz, Spain by Francisco M. at

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Management tip 11. PostCrisis Values: simple proposals V
07 June 2010

Today´s:  Order.

A quote by a great person: "Good order is the foundation of all good things" Edmund Burke

But... hum... never forget that sometimes order requires a little bit of mess, that order is a mean and not a goal and that every person has a different sense of order.

When stablishing order rules in the company or the team you need to take into account all workers´personalities, talents and inclinations.... this way you will find the order system that really matches the life of the company. One team-members can breath through...

Always avoid to be an order fundamentalist as you can kill the life of the team.

More to come tomorrow!

The CostaLuz Lawyers team

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Legal tip 290. Countdown for contest
07 June 2010

7 days for the 1st Costaluz ideas contest to be launched...

as we announced some days ago, we will be publishing the rules of the contest next Sunday, the 13rd of June.

The participants will have to be under 35 y/o with a project for a company of services to foreign retired people in Campo de Gibraltar.

The award will be full year free assistance package by Costaluz legal and company departments for: setting up, taxation, accounting, work system, marketing... and interviews with local politicians and financial institutions.

eyeonthis, eyeonspain,

Have a great week,


Playa de Bolonia by Cucutrash at

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Legal tip 289. Capital Gains Overtaxing refund: deadline end of December
07 June 2010

Capital gains for foreigns in Spain were over taxed till January 2007 die to European decission.

Just a reminder: deadline to claim this amount back finishes next December 31st.

As the action for claining has a 4 year live period, sales which can be benefitted from the change of taxation on capital  gains starting 1st of January 2007 are those transacations which took place

from june 7st 2006 ( counting as today´s date) to 31st december 2006

Have a great June week!

Maria L. de Castro

Bolonia dune por vicox01.

Bolonia Dune. Tarifa, Costa de la Luz, Spain  by Vicox01 at

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Management tip 10. PostCrisis values: simple proposals IV
05 June 2010

 Today´s: Humility

A quote by a great person:

" If I have seen further than others, it is by standing upon the shoulders of giants" Isaac Newton

Humility is essential is you want to keep an open actitude towards continued learning.

Humility is an essential value for team life, for every member of it and for the team as a whole.

 Humility is a gate to depth and mystery.... in our daily work matters and in relationships among us.

The Costaluz Lawyers team

For older posts od same serie:

POstCrisis values: Simple Propsals I

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Legal tip 288. Banco de Valencia refunding deposit in Corvera
04 June 2010

Yes, and in the Out of Court stage. Banco de Valencia has wisely refunded one of our clients this week. Corvera Phase III.

See post in the Corvera forum here

Congratulations to him and the Bank!

Have a great weekend!


000010 por El Mambo Taxi.

Rinconcillo beach in Algeciras, Gibraltar rock in the horizon by El Mambo Taxi at

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Legal tip 287. Guarantees 57/68 : revised article
04 June 2010

Guarantees for Spanish Off Plan Developments


Revised version of article Published on EyeonSpain 11/15/2006 1:21:13 PM in Buying Process


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The Aval Bancario (Bank Guarantee) or Insurance Contract were both established by a 1968 Law to protect buyers in off plan developments. The General Building Act passed in 1999, reiterated these rights, establising interests at the legal rate against the fixed 6% of Law 57/68.

Article. 1. - The developer must guarantee the return of the deposited amounts plus 6% of annual interest, through an insurance contract or by bank guarantee, in circumstances where the construction doesn’t start or doesn’t finish in the agreed time.

They also need to open a special bank account for your amounts (different from the general one of the developer) and have it expressly written in the contract.

Banks, under their liability need to verify that guarantees exist for moneys deposited in their accounts by individuals buying off-plan.  They also need to take an active role on ensuring money deposited in their accounts for off-plan purchases are used for building purposes.

Article. 2. - In those contracts where the parties agree on anticipated amounts the developer must expressly state:

a) That the developer will give back to the buyer all the advanced amounts plus the 6%, in circumstances where the construction fails to start or end within the agreed deadline, or the certificate of habitation is not granted.

b) Reference to the bank guarantee or insurance contract, this must indicate the name of the Bank or the Insurance Company.

c) Specification of the Bank or financial institution and the account number where the buyer’s money is deposited.

At the signing of the contract, the developer will give the buyer the document that contains the guarantee (the Aval or the Insurance Contract) and the document must have a reference to the amount that is anticipated.

Article 3. – If the deadlines for starting or finishing the development are not met, the buyer can choose between cancelling the contract with the return of advanced amounts plus 6% annual rate, or to concede a time extension, which will be stated in an additional clause in the contract, specifying the new deadline with the date for finishing the construction and completion.

The insurance contract or the bank guarantee together with the document that fully proves that the work has not been started or that the completion deadline has not been met nor complied with, will have executive power as it is stated in the Title XV of Book II of Civil Procedure Law, to demand from the insurance company or the bank, the amounts that the buyer is entitled to, without prejudice of any other given rights also applicable. 

If you have a Bank Guarantee/ Insurance Policy and your property has not been delivered on time you can execute your Guarantees for the refund of deposits plus legal interests, if you were not given a Bank Guarantee, you can ask the Bank for liabilities linked to this.


Written by: Maria de Castro

About the author:

Maria de Castro is a Spanish Lawyer and the Director of the Law Firm

Costa Luz Lawyers are contract and consumer real estate law specialists covering all parts of Spain. You can contact Maria at


Beach in Tarifa, Cadiz, Costa de la Luz, Spain by DarkBlade at


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Legal tip 286. Student visa in Spain
04 June 2010

Some aspects of the student visa in Spain:
Foreign students  must apply for the corresponding visa at the Diplomatic or Consular Offices of their country of origin.  Once they arrive to Spain, the students need to apply for an anuthorisation to stay. This can be done at the Foreign Department or at the Police offices.
These are the documents you need before applying for a student visa for Spain:
* Application form
* Passport
* 4 photographs ( passport size)
* Proof of purpose of visit
* Proof of solvency: funds to stay
Return tickets
* Criminal records
* Health Insurance
A great weekend to you all,
Maria L. de Castro

sombras por movimente.

Tarifa beach by Movimente af 

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Management tip 9. PostCrisis values: simple proposals III
03 June 2010


Today´s: Autonomy

A quote by a great person:

" A primary function of art and thought is to liberate the individual from the tyranny of his culture in the environmental sense and to permit him to stand beyond it in an autonomy of prception and judgment" Beverly Sills

It also applies to companies as we need to be agents for the re-creation of culture, independence, initiative... far beyond market and State´s criteria.

Have a great hot Thursday!

For older posts of same serie:

PostCrisis Values: Simple Proposals I


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Legal tip 285. Inheritance and wills in Spain for dummies, VI
03 June 2010

If you die without a will, your  heirs will have to formalize what is called a              "certificate of inheritance", an affidavit that formally declares who are the relatives entitled to inherit under the rules we saw yesterday.

Who needs to issue the formal declaration? If, according to rules of Law, your heirs are your descendants, ascendants or spouse, this affidavit needs to be made by the local Notary where you had your last domicile.

If the heirs under the law are other ones (siblings, children of brothers or more distant degree relatives), the declaration of heirs have to be made by the Judge.

What documents will your heirs have to bring to the Notary?

- Personal identification card
- Certificate of death
- Negative Certificate from the General Registri of last wills
- Family Book
- Two witnesses among friends of the deceased´s family, no relatives

Compared to costs if you grant a will,  these ones are multiplied by three if the statement is made by a notary and for more than three if  the statement needs to be done before the judge.

By Jesus and Maria L. de Castro

Chiringuito en Bolonia, Tarifa por Chodaboy.

Chiringuito en Bolonia, Tarifa, Cádiz by Chodaboy at



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Management tip 8. PostCrisis values: simple proposals II
02 June 2010

Today´s : Generosity

The value of a man resides in what he gives and not in what he is capable of receiving.  Albert  Einstein

I have also read an interesting idea by Alejandro Llano today. It was mentioned in a lecture of the First Symposium " Society, economy and values" by University of Navarre...:

" Management is the science through which humanities will gain new relevance"

The Costaluz Lawyers team

For same posts of same serie:

PostCrisis Values: Simple proposals I


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Legal tip 284. Inheritance and wills in Spain for dummies, V
02 June 2010

If you leave no will, Uncle Law will determine who are your heirs.

Who are the preferent heirs for Old Uncle Law?

1) Your widow/widower: Uncle Law will  always give to her/him the usufruct of one third of your goods, for some relief ;)

2) Your children: Uncle Law will distribute your goods among them. Shares will be equal. If one of your children had died before you, your grandsons/granddaughters would receive this portion, if there was no grandsons/granddaughters of this pre-deceased children, his/her brothers and sisters ( yours sons and daughters) would get an increase on the portion of your inheritance.

3)Your parents will inherit all your assets if you die without children

4)Your grandparents will be your legal heirs if you are an orphan and have no children

Finally, if you had no children, no parents, no grandparents….your widow/widower would be your sole heir.

As you can see our system, “ inherited” from Old Roman gives prevalence to consanguinity over affinity

Steps to address when someone die without a will..... tomorrow

Have a great day!

Jesús Castro and Maria L. de Castro


La Barrosa beach by Roberto Carlos Pecino at

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