The Law in Spain

Before 2007 the classical Spanish tax scheme on capital gain tax established two different tax rates applicable to profits obtained due to the sale of a property. Residents were subjected to a 15% tax rate while non-residents were obliged to pay 35%.

The European Commission began two infringement procedures against Spain in 2005 and 2006 for not to comply the European Court of Justice Resolutions on capital gains tax. Read the rest of this entry »

As it is already well known, since 23rd of July the AIFOS Bankruptcy has initiate a new chapter in this creepy story. The situation was foreseeable as the reputation of this company was well known. Aifos commercialized developments at very competitive prices and had very good marketing strategies. They did not have building licenses, Read the rest of this entry »

An NIE is an identification number for foreigners in Spain, which is essential to carry out any type of formalities, such as purchasing a property, a car, apply for a worh permit or even opening a bank account. If your stay in Spain is longer than 3 months, then you must apply for residency. Read the rest of this entry »

For many years we have seen how easy it has been for both residents and non-residents to obtain approval for a mortgage loan for a house purchase.

The purchase of the property was made at a time interest rates were very low and when it was simple for an owner to rent out the property and when am owners could easily sell their homes at a price that allowed them to not only pay off their mortgage but also make a profit. Read the rest of this entry »

We are all these days finding cases of homeowners who have leased their property without receiving proper legal advice, having been advised only by the professional responsible for managing the rental, or people who do not have correct information.

As a result of the lack of adequate legal advice, in signing the rental contract, many problems may arise later: Read the rest of this entry »

One of the principal causes of the real estate market bust has been the mortgage financiation grinding to a halt. The enormous difficulties to get a loan provoke the impossibility for the off-plan buyers to go ahead with completions. Whilst the developer has already obtained the first occupancy license, the requirement to complete puts the buyer in a breach of contract situation and usually, according to the penalty clause included in the contract, this will entail the lost of the deposits in benefit of the developer.

However in most of the cases the buyer is entitled, with legal mechanism, Read the rest of this entry »

When and why do foreign citizens need  a Spanish will?

There are many foreign citizens who hold assets in Spain such as houses, bank accounts (or other financial assets), cars and/or even companies.

Due to the complex Spanish Inheritance process it is vital to ensure you have a suitable Spanish Will to cover these assets.

Read the rest of this entry »