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El blog de Maria

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

Legal tip 1326. Two ideas on IHT in Spain. The monster is not that ugly!
30 September 2015

 

 

The first idea for you is that the monster of IHT in Spain is not so ugly. There are reductions on taxable amounts.

*In almost all Spanish regions, direct family relatives such as spouses, ascendants and descendants do not pay Inheritance Tax any longer. In the rest of the communities, these relatives can enjoy of reductions in the taxable amount.

*There is no different IHT tax treatment in Spain between residents and non-residents.

The second idea is that you can OF COURSE; avoid double taxation on IHT despite there being no bilateral UK-Spain agreement on this.

If you are Spanish tax resident and are also paying IHT tax in the UK:

You can deduct, from your Spanish IHT tax bill, the smaller of the following two amounts:

• a) ​​The actual amount you have paid in the UK as IHT tax.

• b) The amount that those UK assets would pay for IHT in Spain.

If you are a UK tax resident and are legally obliged to pay IHT in regards to a real estate asset you are inheriting in Spain:

You can deduct, from your UK IHT bill the lower of these two amounts:

• a) ​​The actual amount you have paid in Spain for IHT in regards to that asset

• b) The amount that the Spanish asset would accrue for IHT in the UK.

So, despite Spain and the UK not having an IHT bilateral agreement to avoid double imposition, they do use same legal rule when dealing with these potential double impositions.

We will be pleased to answer your questions with regards to avoidance of double imposition Spain-UK IHT 

 

Punta Umbría, Huelva, Costa de la Luz, South weste of Spain

 



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Legal tip 1325. Online company setup in Spain
25 September 2015

COMPANY SETUP IN SPAIN – LOW COST AND ONLINE. 

JUST started on 13 SEPTEMBER 2015.

SPECIAL BONUS FROM COSTALUZ LAWYERS

Do you want to create a company in Spain in less than 24 hours? It will be possible from September 13th onwards.

How?

Following this simplified process: 

1.  Visit to the advising Point for entrepreneurs (PAE): for advice both in the process of social constitution and in the filling of the Single Electronic Document (DUE).

If you have a digital certificate, you can perform this step by Internet through the virtual PAE located in the CIRCE website.

2. Single Electronic Document (DUE) is very important because it contains all the necessary information for the setup of the company.

3. Visit to the Notary: For the granting of the Company incorporation deeds.  A Bank certificate with proof of capital disbursement is necessary at this stage. Since granting of deeds, the online system will send DUE document to each competent office so that no further management is necessary by the applicant.

 

How long does it take?

Deadlines for the granting and registration of companies are: 12 hours for granting of deeds and 6 working hours for qualification and registration in Companies House Register.

How much does it cost?

Official Fees (Notary and Registry):

100€ if the share capital of the company does not exceed 3,100 euros and statutes are made pursuant to the statutes-type,

150€ in other cases

This new Royal Decree which becomes effective on September 13th also offers:

- Standard form for statutes of a limited liability company (SL)

- Notaries agenda containing a calendar with the availability of notaries for the granting of deeds.

A list of more than 1500 company names with reservation that may be consulted electronically for free.

 

SPECIAL FEE OF 300€ FOR YOU AND YOUR FRIENDS (FB friends and Linked contacts included) IF HIRING US FOR THIS SERVICE.

 

 

 

OFFER ENDS DECEMBER 31ST 2015.

 

Cadiz Bay, with the begining of the new bridge being built, Cadiz, Costa de la Luz, South western Spain

 


 



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Legal tip 1324. NEW! ANOTHER WON CASE AGAINST BANCO POPULAR FOR MIRAFLORES DEVELOPMENT INVERSIONES BUYER AT THE ‘VISTAS DEL LAGO’ DEVELOPMENT
24 September 2015

ANOTHER WON CASE AGAINST BANCO POPULAR FOR MIRAFLORES DEVELOPMENT INVERSIONES BUYER AT THE ‘VISTAS DEL LAGO’ DEVELOPMENT

We were pleased to notify another client today that we had won their case against Banco Popular.  The client did not receive an individual Guarantee from the developer, Miraflores Development Inversiones or from the Bank to which their off-plan deposit was paid, BANCO POPULAR (formerly BANCO DE ANDALUCIA).

Re: YOUR CASE AGAINST BANCO POPULAR ESPAÑOL S.A.

Please find attached Sentence number xxx/2015 from the Provincial Appeal Court Section 8 in Cadiz.

I am very pleased to advise you that your Appeal has been upheld and the Sentence issued by the First Instance Court No.3 In Arcos de La Frontera has been reversed and your Lawsuit against BANCO POPULAR ESPAÑOL S.A. is now upheld.

The final paragraphs of the First Instance Sentence delivered on 11 November 2014 stated:

“I completely dismiss the Lawsuit filed on behalf of XXXXXXX XXXXXXXX against BANCO POPULAR ESPAÑOL S.A., absolving BANCO POPULAR ESPAÑOL S.A. of all claims made against it with the imposition of costs on the plaintiff”

The final paragraph of the Provincial Appeal Court Sentence delivered on 9 September 2015 states:

“That estimating the Appeal filed on behalf of XXXXXXXX XXXXXXXXX against the Sentence from the First Instance Court No. 3 of Arcos de La Frontera in Ordinary Trial number xx/2014, we therefore reverse that Sentence in FULL and estimate all claims in the Lawsuit and condemn BANCO POPULAR ESPAÑOL S.A. to pay to the Plaintiff the sum of xx,xxx Euro plus interest at the legal rate from the date of filing of the Lawsuit, without making any pronouncement in respect of the costs of this Appeal and without imposition of costs of the First Instance procedure”


So your Appeal has been upheld and the Provincial Appeal Court has ruled that BANCO POPULAR is condemned to pay you the sum of xx,xxx Euro plus legal interest from the date of filing of the Lawsuit, until full payment to the Court.

There was no pronouncement regarding the imposition of costs relating to the Provincial Court Appeal or for the First Instance Procedure, therefore each party will pay its own costs for both the First Instance & Appeal.

Interesting statements from the Provincial Appeal Court are:


The failure of the developer to comply with its obligation to deposit the buyer’s funds in a special account does not exclude coverage of the guarantee provided by the bank.  It is a legal obligation imposed on the developer and this obligation to deposit the funds in a special account cannot be imposed on the buyer.  The effects of this violation cannot be transferred to the buyer who is granted by Law an inalienable right to obtain the refund of the amounts paid in advance in the event of termination of the sale for reasons attributable to the developer.

On the other hand, it has been proven that there exists a specific Line of Guarantees granted to the developer for the subsequent issue of individual guarantees in favour of the buyers.

For the Court it is entirely irrelevant that no individual guarantee has been issued to purchaser.  The obligation on the Bank stems directly from the policy guarantee with the developer and the failure of the Bank to require the developer to open the special account cannot relieve the Bank of this responsibility”

Arcos de la Frontera, Cadiz, South of Spain



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Legal tip 1323. Do not pay VAT when renting if...
18 September 2015

If you rent your property for holidays in Spain, there are two different tax routes for you:

1)  If the rental contract is regulated by the General Rental Act as a “rental for use other than housing”:

* In these cases, there is no obligation to charge VAT to tenants.

* Payment of deposit rent fee is mandatory.

* Income received from the property rental will be reflected in the Annual Declaration of Incomes (Income Tax) as earnings from real estate.

* Expenses incurred  for the obtaining of the rental income can be deducted: mortgage loan interest, bank commissions related to mortgage amortization, taxes, community fees, home insurance, value decrease of property ---- all these in proportion to the rental period.  Also repairs and maintenance expenses, power supplies and rental agent fee.

* Deposit fee is mandatory. Two months of rent to be paid to the Treasury of the Regional Administration!

* Energy certificate is mandatory if the rental is for a period over 4 months.

2) If you register your second home as "tourist accommodation" in your region, taxes will be as follows:

- The issue of an invoice is necessary for each stay

- You need to apply the corresponding VAT (10%) to the price of the rental

-  Quarterly VAT declaration is necessary.

- If your work status for this activity is “autonomo” (independent worker), you will need to make a quarterly declaration of income tax for this

-  Some regions regulate a Tourism Tax for this and have regulations on payments of deposits

-  Expenses (as in previous Tax Route) are deductible.

You might like to read these posts on Property Rentals

 

Contact us if you have some questions on Holiday rentals

 

El Batán de Lara (a house for rent, in Benamahoma, Cádiz, South of Spain)

 



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Legal tip 1322.Recently WON Costaluz Lawyers cases against Banks for off-plan property purchases in Spain (Law 57/68).
17 September 2015

 

 

1. LEY 57/1968 BANK ACTION WON IN FIRST INSTANCE COURT AGAINST CAIXABANK S.A. FOR A CLIENT BUYING FROM MANILVA COSTA S.A. AT JARDINES DE MANILVA

2.   LEY 57/1968 BANK ACTION WON IN PROVINCIAL APPEAL COURT AGAINST BANCO MARE NOSTRUM (CAJA GRANADA) FOR A BUYER FROM PROMOCIONES INROAL AT ANDARAX IN TERQUE, ALMERÍA

3.   LEY 57/1968 BANK ACTION WON IN PROVINCIAL APPEAL COURT AGAINST SGR & BBVA FOR HDT BUYERS AT RESIDENCIAL SANTA ANA DEL MONTE IN JUMILLA

4.   LEY 57/1968 – BANK ACTION WON IN PROVINCIAL APPEAL COURT AGAINST CAJA RURAL CENTRAL FOR PROMOCIONES EUROHOUSE BUYERS AT FORTUNA GOLF RESORT & PUEBLO LA SAL (SAN PEDRO DEL PINATAR)

5.   LEY 57/1968 WON CASE AGAINST ZURICH INSURANCE PLC FOR A GROUP OF OFF-PLAN BUYERS FROM THE DEVELOPER INMOBILIARIA NADALSOL S.L. AT MEDINA GOLF RESIDENCIAL

6.   LEY 57/1968 BANK ACTION WON AGAINST BANCO POPULAR FOR MIRAFLORES BUYERS AT ‘VISTAS DEL LAGO’ DEVELOPMENT

7.   LEY 57/1968 BANK ACTION WON AGAINST BBVA FOR PROMOCIONES EUROHOUSE BUYERS ON RESIDENCIAL FORTUNA GOLF RESORT & APARTMENTOS TURISTICOS PUEBLO LA SAL

8.   LEY 57/1968 BANK ACTION WON AGAINST CAJA RURAL CENTRAL FOR PROMOCIONES EUROHOUSE BUYER ON RESIDENCIAL LOS BALCONES DEL VALLE

9.   LEY 57/1968 CASE WON IN PROVINCIAL APPEAL COURT AGAINST PROMAGA & UNICAJA

10.   New LEY 57/1968 BANK ACTION won against CAJAMAR, BANCO POPULAR & BANCO SABADELL in PENINSULA PROJECT MANAGEMENT DEVELOPMENT: RESIDENCIAL GRANADA GREEN

11.  NEW LEY 57/1968 BANK ACTION WON AGAINST BANCO DE VALENCIA (now CAIXABANK) at CORVERA GOLF & COUNTRY CLUB

12. Cases WON Against EUROHOUSE & respective BANKS

13. PROMOCIONES EUROHOUSE 2010 S.L. – LEY 57/1968 BANK ACTION WON AGAINST BANCO SABADELL (formerly BANCO CAM)

14 .PROMOCIONES EUROHOUSE 2010 S.L. – LEY 57/1968 BANK ACTION WON AGAINST CAJA RURAL CENTRAL FOR BUYERS AT FORTUNA GOLF RESORT & PUEBLO LA SAL (SAN PEDRO DEL PINATAR)

15.LEY 57/1968 BANK ACTION WON AGAINST BANCO POPULAR & LA RESERVA DE MARBELLA

16.LEY 57/1968 BANK ACTION WON AGAINST BARCLAYS BANK S.A AND SIERRA BLANCA

Email us if you want to know if you have an action

Manilva, Málaga, South eastern Spain

 

 

 



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Legal tip 1321.  Visas for non EU investors and Golden Visas in Spain
15 September 2015

Non European foreign investors can obtain residency permits in Spain, when:

Investing amounts equal to or more than 2 million euros in Spanish government bonds, or purchase equal to or more than a million euros in shares of Spanish companies, or bank deposits at Spanish financial institutions.

 

Acquiring real estate in Spain with an investment of equal to or greater than EUR 500,000 per applicant.

 

Starting a business project that will be developed in Spain and is considered and credited as of general interest, for which the performance of at least one of the following conditions will be valued:

 

1. º Creating jobs.

 

2. º Making an investment with relevant socio-economic impact in the geographical area in which the activity will develop.

 

3 º Important contribution to scientific innovation and / or technology.

 

It will also be a significant capital investment when this is made by a company which is established in a territory which is not considered a tax haven according to Spanish law, and the foreign applicant owns, directly or indirectly, the majority of the voting rights and has the power to appoint or remove a majority of the members of the Company board.

 

 

If you are a Non European investor or entrepreneur willing to participate and benefit from the good recovery of the Spanish economy…. just let us know so we can see if you are eligible for a residency permit

 

Spain will be the No.1 European economy in the next few years. Do not miss the chance.

 

 

 



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Legal tip 1320. A zero debt certificate from Community of owners.
10 September 2015

 

Are you selling your home in Spain?  Do you need to ask the Community Administrator for a certificate to prove you are up to date with payment of community fees?

Here is an example of a letter that you could use:

ENGLISH VERSION

D ................ Secretary of the Community of Owners located in  C / ....................... number …………of ....................

Sir,

Having decided to sell my property , number ................... of this community, I pray that in a maximum of seven calendar days you submit the certification on debt status of said  property that is regulated in provision 9.1.e of the current Community of Owners Act ( Horizontal Property Act) ,indicating, where appropriate, the outstanding payments and concept.

 Without further ado, I remain yours

 

D .............................

Owner of the flat (or premise) ..............

 

SPANISH VERSION

D ................ Secretario de la Comunidad de Propietarios de la C/ ....................... número .................. de ....................

Muy Sr. Mío:

Habiendo decidido la venta del piso de mi propiedad, número ................... de esta Comunidad, ruego que en el plazo máximo de siete días naturales me remita la certificación sobre el estado de deudas con la comunidad de dicho inmueble que se regula en el conforme al art 9.1.e) de la vigente Ley de Propiedad Horizontal , con indicación, en su caso, de las cuotas pendientes de pago y su concepto.

 Sin otro particular, se despide atentamente

 D.............................

Propietario del piso (o local) ..............

 

We will be pleased to assist you with any matter in relation to Community of Owners.



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Legal tip 1319. European Inheritance Law compulsory since August 17th, 2015. A NEW SPANISH WILL ADVISED?
04 September 2015

EU Regulation passed in 2012 (650/2012, also knows as Brussels IV) is now in-force, from 2015 August 17th, .

 

In simple terms. What is all that about?

 

1.   Every inheritance to be treated under a single Law and by one authority. So if there are links to several countries, Law of just one of them is chosen and applied.

 

2.   Citizens to choose between law of residency and law of nationality for their inheritance affairs.

 

3.    Creation of the European Certificate of Succession

 

SOME IMPORTANT IDEAS TO  REMIND:

 

  • It does not imply, in any sense, the alteration of the substantive National inheritance Law of every European Country. Every country will maintain its own Inheritance Law.

 

  •  Matters such as who are inheritors, or how taxes apply, are not impacted in any way by this new European regulation.

 

 

  • This regulation also creates the European Certificate of Succession, which will make easier the proving of status and rights as heir/ administrator of the estate/ executor of will. This certificate will be issued by the country where the deceased had habitual residency and will provide proof of entitlement in the estate to all signatory countries.

 

 These rules will obligatorily, by virtue of Law apply to all persons dying after 17th of August 2015 so it is important.

Cliffs of Maro, Nerja, Málaga, South east of Spain, at facebook.com

 

 



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Legal tip 1318. Mortgage on an illegal property? Did the Bank impose a mortgage on you?
03 September 2015

 Do you have a mortgage on an illegal property? Did the Bank impose the mortgage on you?

I have recently been reviewing great pro-consumer, pro-buyer Case Law on illegal mortgages. We have several clients suffering from these situations: either because of having mortgages on illegal properties or because the mortgages were illegally imposed on the buyer.

So….maybe not you (lucky you), but perhaps a family member or a friend is in one of these predicaments:

  • Is paying a mortgage which was imposed on them before completing because the developer had over-mortgaged the development with no previous consent of the off-plan buyers
  • Is paying thousands of euros for a mortgage on an illegal property.

There is now Case Law for a solid defence of these situations in favour of consumers. Good punishment to Banks again!

A field closed to Zahara de los Atunes, Cadiz, Costa de la Luz, South west of Spain

 

 



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