Blog

SPANISH LAWYER IN MARBELLA INFORMING ON “LIEU OF PAYMENT” (DEED IN LIEU OF FORECLOSURE) AND OTHER LEGAL INSTRUMENTS IN FIGHTING EVICTIONS PROCEDURES (I)

English speaking lawyer in Marbella, Felix Ruiz Peña, profesional of Arcos & Lamers Asociados would not desire to leave without comment on our blog, referring to the financial crisis and the bursting of the housing market bubble, the drama of evictions in our country. The number of foreclosures continues to rise, up to 18% more than last year at this time, according to the “Consejo General del Poder Judicial” (Spanish General Council of the Judiciary). Accountant and tax adviser in Marbella, Málaga, Costa del Sol SpainBoth, Government and Opposition meet to try to find a solution to thousands of families affected, with serious risk of losing their homes, for the imperative of a expired law and alien “to the social reality of the time that is to be applied” ( art. 3 Spanish Civil Code).

DO I NEED TO PAY TAX ON AN “IN LIEU PAYMENT”? ENGLISH SPEAKING SPANISH TAX LAWYER IN MARBELLA IS ANSWERING.

Lately we are continuously hearing the term “in lieu payment” of properties that are encumbered with a mortgage when the debtor is not able to meet his obligations. The “in lieu payment” system is set out as a “solution” which will free the debtor and his family from the responsibility of having to continue to pay for a property that is not his any more. Nevertheless, these operations are subject to certain taxes, depending on the type of individuals intervening in the operation.

lawyer in marbellaWhen a debtor gives a property to settle a debt, this is subject to the payment of the Spanish Property Transfer Tax or the Spanish VAT depending on whether it is an individual or a company that is performing the action. When dealing with a company, it then also depends on whether the property is newly built or not. The tenderer is creditor of the tenderee for its own loan claim.

In the event that the in lieu payment is made by an individual, the transaction will be subject to the Property Transfer Tax and Stamp Tax (ITP-AJD), under the modality of Transfer Tax (TPO) although this was exempt from the approval date that the law went into force by the Spanish Law Royal Decree-Law 6/2012, of 9th of March, on urgent protection measures for mortgage debtors without resources. The capital gains that could be generated in favour of the debtors were also exempt from Income Tax.

MULTILINGUAL SPEAKING SPANISH ACCOUNTANTS IN MARBELLA INFORMING ON TAX DECLARATION 347.

Accountant in Marbella, Spanish Tax form 347The below mentioned notes on Spanish Tax declaration 347 are prepared by Ms. Sara Duarte, Spanish accountant at Arcos & Lamers Asociados.

What is it?

The Spanish tax declaration, form number 347, is a compulsory informative annual declaration regarding transactions with third parties.

Who is required to present this Spanish tax declaration?

TAX LAWYER IN SPAIN INFORMING ON CHANGES IN THE SPANISH VAT LAW TO AVOID FRAUD THROUGH PROPERTY REPOSSESSION.

English speaking Spanish Tax lawyer of Arcos & Lamers Asociados has the pleasure to inform you on changes of the Spanish VAT Law. The Spanish government approved the new Anti-fraud law on the 31st October, modifying the Spanish VAT law in order to avoid banks using the legal figure of lieu in payment to defraud the Tax Office in Spain. The Treasury has lately detected an increase of VAT fraud among financial institutions through lieu in payment when companies wish to settle their debt with Spanish banks.

lawyer in Marbella, lawyers in Costa del Sol, fiscal advisor in MarbellaWhen a company resorted to the lieu in payment to settle an outstanding debt with a bank, the financial institution acquired the property for a certain value inclusive of VAT and the company had to settle the Spanish VAT payment with the Tax Office. The company in question not only handed the property over to the bank, but was also the party liable to comply with public tax administration even though the company did not receive such amount to pay the outstanding VAT with the Tax Office.

Later on, the banks could deduce the tax payment for the acquisition as they carry out such transactions through real estate assets management companies that work solely on sales and purchases of real estate and such companies may apply these kinds of deductions.

Lawyer in Marbella informing on key points of draft project law to make more flexible and to speed up the Spanish rental market.

Spanish lawyer settled in Marbella informing on Spanish rental contractsMs. María Teresa Arcos, lawyer in Marbella has the pleasure to inform that according to data of the Ministry of Development, the stock of unsold new dwellings in Spain is of 687.523 units, and according to INE, there are 3 million of empty dwellings, being 1.8 units for rent.The objectives pursued by the aforementioned Spanish Draft Law are achieving a revitalization of the rental market in Spain, to strengthen the legal security and improve the regulation of the eviction procedure.

The Draft Law includes the following measurements:

SPANISH LAW OF PROTECTION AND SUSTAINABLE USE OF THE COAST AND AMENDING LAW 22/1988, OF 28 JULY, ON COASTS.

 

Spanish Coast LawOn more than one occasion, when a client arrives at a Spanish law firm looking for advice on buying a beautiful property in Spain overlooking the sea, the first thought of the professional is to cross fingers and hope that this beautiful apartment or villa complies with the Spanish Coast Law.

Presently, we are on the eve of the approval of the Law of protection and sustainable use of the coast and amending Law 22/1988, of 28 July, on Coasts. The new Spanish law will seek to provide more “legal security” to situations that previous legislation was not able to regulate and sustainable improvement of the coast lines in Spain.

Spanish tax adviser informing on the History of Wealth Tax in Spain.

Wealth tax in Spain, Spanish Wealth taxTax advisers of law firm, Arcos & Lamers Asociados, are pleased to write some lines with regards to the history of Spanish Wealth Tax.

The wealth tax in Spain was introduced for the first time in 1978 as by law 50/1977, of 14 November. The same was introduced as urgent measurement for a fiscal reform (B.O.E. of 16 November), developed by the Spanish Ministerial order of 14 January 1978 (BOE 17 January) that established the wealth tax for individuals (IEPPF) had an extraordinary status. Spain was on his initial steps of democracy and the existence of a progressive tax system had to be proven.

SPANISH ACCOUNTANTS INFORMING ON BASIC MERCANTILE GUIDELINES TO FULFILL AFTER SETTING UP A SPANISH SL COMPANY.

Mercantile obligations in SpainThe professional Spanish Accountant of Arcos & Lamers Asociados, Ms. Sara Duarte has the pleasure to set out below some lines with regards Spanish Basic mercantile rules. All Spanish SL companies are bound to present at the Spanish Mercantile Register, where the last company address was registered, the following documentation for its registration:

1. Annual Spanish Accountancy Books

2. Spanish Annual Accounts