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El blog de Maria

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

Legal tip 1358- NEW! Spain Supreme Court clear speaking on Banks liabilities
Monday, December 28, 2015

A recent Court decission dated 2015, 21st of December  sets " Case Law Doctrine" on liabilities of Banks, receivers of amounts in off- plan deposits

Regardless the account was named "special" or not, always provided there is no General Guarantoor involved ( Bank or Insurance Company), as far as it is reasonable the Bank knew those payments were for an off-plan project, liabilities of provision 1 second paragraph of Law 57/68 apply!

Good news!


The Virgen de los Reyes Square and the Giralda, on the left side, on Christmas time. Seville. South of Spain

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Thursday, December 24, 2015

Of course!


Christmas is possible! It happens!

Below, a picture of a typical Jerez de la Frontera Zambomba. Flamenco Singing and dancing gatherings to celebrate Christmas


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Legal tip 1356. Starting a business in SPAIN:  Manager of a company: legal obligations
Wednesday, December 16, 2015

Starting a business in SPAIN:  Manager of a company: legal obligations

The post of administrator, regardless of the administration system chosen by the company (either as sole director, mutual, pooled or board), involves a chain of obligations under Spanish Commercial Law.

Numerous Court decisions have been delimiting, within the daily life of corporations, the actual content of voices such as loyalty, non-competition or diligence of an orderly businessman

Main duties of the position of general manager are:

First. - Duty of care. It involves:

*Active duty and the obligation of being properly informed of the company's financial situation and legal and statutory obligations.

*Carrying of proper accounting and legal obligations such as depositing the yearly accounts in the commercial register in the legally prescribed period

* Understanding of the obligations to reduce or increase the capital or dissolve the company in the event of losses that reduce the patrimony of the company to what is legally established

*Duty to request a voluntary declaration of insolvency in the legitimate cases

*Compliance with Taxes and Social Security obligations.


Second. - Duty of fidelity. The obligation is always to prefer the interests of the company to the own interests.


Third. - Duty of loyalty:  By not using the name of the society nor invoking the position as administrator to carry out operations on his own. Not to make to his own benefit or to the benefit of people linked to him, investments linked to the assets of the company that he administers or of which he has knowledge due to the position as manager. To notify the company of any possible conflict of interest.  To report subscriptions to the company´s patrimony of companies with equivalent objects.


Fourth. - Duty of confidentiality: It means to keep secret of confidential information which has been accessed deriving from the exercise of the position, when such information can have harmful results for the company.




We can guide you through the whole process of setting, organising, hiring employees, directing, accounting, tax paying and closing/ liquidation of a business in Spain.




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Legal tip 1355. 31st of December in Spain: grapes, champagne and TAXES
Monday, December 14, 2015

Deadline for non-residents to submit tax return is 31st December. So in several weeks, you need to submit your tax declaration regarding 2014 year. 

Who is a non-resident?

A person is a resident for tax purposes in Spain if they spend 183 days in a calendar year (including sporadic absences) on Spanish territory or if their business, professional or economic interests are based in Spain. Those whose spouse and/or dependent children are habitually resident in Spain will be presumed resident (unless legally separated)

 Property Ownership in Spain and Non-resident tax

Non-residents who own a property in Spain have to pay Spanish income tax even if they have no rental income from the property. The tax is calculated on the “income” (imputed rent) that the Spanish tax office deems could be made from renting out the property.

If the property was rented during the year, income to be declared is the rent less deducting allowable expenses.  These taxes are paid quarterly.


What the penalties for lack of submission?

 Spanish tax man is inspecting on this tax.  Penalties and charges can reach up to 300%. An embargo on your property or Bank account can be placed.



 CostaLuz Lawyers´ Tax office is ready to submit your non-resident taxes. Come before starting Christmas parties!  


31st of December in the Plaza de España (Square of Spain),Seville, Southwest of Spain


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Legal tip 1354. Tax reductions in Gift Tax in Andalucía
Thursday, December 10, 2015

Starting a business or buying a property being promoted through this Gift Tax reductions in Andalucía

     1. Special regional reduction if recipient is acquiring a company, a professional practice or company shares.

If recipient has been working for the company and have management of administration responsibilities in the same

    2. Special reduction if recipient is  investing  those amounts in acquisition of first residency

Being máximum reductions:

  • 120.000,  for  recipients  under  35 years old
  • 180.000, for handicapped recipients, with a handicap level of at least 33%.
  • Reductions when money is used for the creation of a company or professional practice in Andalucía.

Being máximum reductions:

  • 120.000
  • 180.000, for handicapped recipients, with a handicap level of at least 33%.

A street in Cordoba, south of Spain

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Legal tip 1353. CostaLuz Lawyers are the slowest property conveyancers in the country
Wednesday, December 9, 2015

We are proud of being the slowest conveyancers in Spain ;)

Slowly but surely.......

We are carefully taking detailed attention to all which can cause trouble to the client while agents and sellers are rushing the client and us for their profit.

No way!


A country house in Tarifa, Cádiz, Costa de la Luz, South western Spain

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Legal tip 1352. Forget all worries when renting in Spain III
Saturday, December 5, 2015

Along several months we are walking through Spain Rental Law in simple words….

Are you walking with us?

We are explaining applicable rules for the renting of urban properties intended for housing or uses other than housing.

Previous chapters:

Chapter one

Chapter two


13. Extension of Housing contracts


If the date of termination of the contract or any of its extension arrives, after a period of at least three years of duration of it, and no party has notified to the other at least thirty days prior to such date, his  will of not to renew it , the contract will be necessarily extended for another year.


Once the rented contract has been registered, the right of extension and the one year extension referred to in the preceding paragraph, will be imposed in relation to good faith third parties due to the Publicity that Land Registry provides


The extended contract will be under legal and conventional regime it was in its origin.

14.  Contract Withdrawal and agreement on compensation

The tenant will be allowed to withdraw the renting contract, once it has passed at least six months, provided that it informs the landlord with a minimum of thirty days.


The parties will be allowed to agree in the contract that, in case of withdrawal, the tenant has to indemnify the landlord with an amount equivalent to one month of the rent in force for each year of the contract that still remains until being terminated. The periods less than one year will lead to the proportional part of the compensation.



15. Withdrawal and expiry in case of marriage or living together of the tenant


 If the tenant states his will of not to renew the contract or to withdraw from it, without the consent of the spouse who was living with such tenant, the renting will be allowed to continue for the benefit of the spouse.


 For this purpose, the landlord may request the spouse of the tenant to state her will on the matter.


After doing the request, the renting will terminate if the spouse does not respond within fifteen days after it. The spouse will have to pay the remaining rent until the termination of the contract, if it had not been paid yet.


If the tenant left the apartment without express statement of withdrawal or non-renewal, the renting will be allowed to continue for the benefit of the spouse who was living with him provided that within one month of such abandoning, the landlord receives written notice of the spouse stating her will to be a tenant.


If the contract is extinguished for lack of notice, the spouse will have the obligation of paying the rent of that month.


 The provisions of the preceding paragraphs will also have to be applied in favor of the person who had been living with the tenant permanently in a similar relationship to that of a spouse, regardless of the sexual orientation, for, at least, two years prior to withdrawal or abandoning, unless they have had children in common, in which case the mere coexistence will be enough.

A street in the centre of Chiclana de la Frontera, Cádiz, Costa de la Luz, South western Spain


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Legal tip 1351. Law 57/68 and touristic apartments
Friday, December 4, 2015

The touristic classification of the apartment is something that Banks are opposing for leaving buyers not covered by the 57/68 Guarantees.

If you, being unaware of this, bought it, thinking it was a plain residential apartment and facts can convince the judge on this-- which is easy;  there is no  difference on the power that Law 57/68 that play in your case.

 The touristic excuse  is an argument which can be turned down mainly because many Courts, and Supreme Court too, defend the tuitive ( protective)  character of Law 57/68 and state that the whole strength of Law 57/68 and its rights protect buyers of residential ( first or second) properties, as soon as these facts occur:

1.- Payments are made to a developer account according to Contract

2.- Development is not finished or on delay

If there is a General Guarantee, the General Guarantor is liable

If there is not, receiver Bank is liable ( as said: Supreme Court has still not formally issued decision on this) 

It is simple.Spain Law is distinctively bright when  providing such a cohesive defense to off-plan property buyers

Apartments in Nueva Andalucía, Marbella, Málaga, South eastern Spain


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Legal tip 1350. Disabled persons and Social Inclusion Act in Spain
Thursday, December 3, 2015

Today, 3rd in December  is the International Day of disabled persons and second anniversary of currently enforceable law for this matter. This Act  has the following leading principles: 

Respect to dignity , to independent life, equal opportunities and universal accessibility

Fields where law is applied are: 

1-Telecomms and information

2- Public urbanized areas

3- Urban Planning and infrastructures


5-Goods and services available to the General Public

6-Relations with Public Administration

7-Justice Administration

8-Cultural goods


Law sets certain compulsory changes and adaptations which are subject to a calendar

Law also includes a chapter on rights of disabled people, mentioning in an specific way: health, integral care, education and employment, social protection, independent life and participation in public events.

The Spanish Team in the Paralympic Games, Londres 2012


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Legal tip 1349. Spain Supreme Court beating Timeshare again !
Wednesday, December 2, 2015


Floating or points systems…. null and void according to Law 42/98. Nullity extends to associated loans, mortgages…

Right to full refund of all paid amounts plus interests 

On recent 2015 September 8th, Supreme Court has reiterated doctrine (initially set in January 2015) on the nullity of Floating / Points systems in Timeshare contracts.

Supreme Court says Timeshare contract is null and void due to two sets of reasons:

 1. Omission of mandatory information (Ex art 9.1 Law 42/98) such as:

  • Data of Timeshare regime deeds, specifying the date of granting, authorizing notary and protocol number of said Notary deed.
  • Land Registry data
  • Express mention of the "real or personal" nature of the right
  • Proof of deadline of the scheme.

These omissions lead Spain Supreme Court to consider that it is the transmission of" any other right “not covered by the special law and leads to the nullity of the contract

2. The contract lacks the object provided by law  and thus infringes the mandatory rule under which the contract must necessarily contain the precise 'description of the building, its location and accommodation on which right lies, expressly registration data and turn which is the object of the contract, indicating the days and hours when it starts and ends´

 In addition, Supreme Courts projects nullity resulting from the invalidity of the main contract to other ones connected or complementary: loans, mortgage…

Supreme Court has also set Case Law on nullity of Timeshare contracts when they contain a perpetuity clause

contain a perpetuity clause




You can check on our website in regards to our offer to timeshare owners






Reservoir of "La Vieja", in the river Zumeta, Sierra of Segura, Jaén, South eastern Spain


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