The minimum interest rate charged on a mortgage in Spain  (Cláusula suelo)

Spanish mortgageBelow we briefly and simply explain everything concerning the minimum interest rate charge on a mortgage in Spain. The so known “Cláusula suelo”

The so known “Cláusula suelo”, in relation with the mortgage loan and the property purchase by mortgage, is a contractual clause stipulating a minimum payable to the bank although the ordinary interest rate that have been agreed with the financial institution is below the one that is agreed.

This clause only benefits the bank, due to as the lower is the interest rate, the client will have to pay less, but to establish this clause the banks ensure a minimum charge. With other words it does not allow the debtor to benefit from the drop of the index.

New Spanish coast regulation and its application in seconds and subsequent transfers of properties, in cases of new registration of properties in Spain and differences in measurements

Spanish coast law

Coast law in spain

In relation to the second and subsequent registrations at Spanish Land Registry on properties that intersect or those that are lining arround the maritime-terrestrial public domain, please find as follow a number of rules that the owners should take into account (notes to article 36 of Spanish coast legislation):

– In Spain, if a plot of land invades or is located next to an area of ​​maritime-terrestrial public domain according to the graphic representation provided by the Department of Sustainability of the Coast and the Sea. The so known Dirección General de Sostenibilidad de la Costa y del Mar, the local Spanish Registry shall suspend the registration requested and make notation for ninety days notifying this circumstance to the Peripheral Service of Coasts, the so known Servicio Periférico de Costas to, within one month since the reception of the request, certify whether the plot of land invades the maritime-terrestrial public domain and its location in relation to the protection and transit easements. After this period, without receiving the mentioned certificate, the Registry will become the annotation for the suspension of the registration domain, which will notify the peripheral service costs.

Inheritance of your home in Spain

spanish inheritanceThe Spanish legal and tax advice should be individual and specific to each client, and especially in the case of succession and Inheritance in Spain and its planning as the advice may be completely different due to the personal and family circumstances of each client. Therefore, each case must be studied carefully.

For instance a person passes away and leaves as a Spanish inheritance, a property in Andalucía with a total value of 200.000 Euros to his wife and his son. In this case the husband is the sole owner of the Spanish property.

First, we should confirm and proof if this property was the usual residence (home) of the deceased or not.

In the event that it was the usual residence of the deceased, the inheritors will enjoy a deduction of 99.99% when the dwelling constitutes transmitted habitual residence of the inheritors (Only in the region of Andalucía).

Change of Spanish tax inspections timings

Spanish tax inspectionThe new version of paragraph 1, article 150 of the Spanish General Tax Law determines a general term of 18 months and an extraordinary term of 27 months for specific and more complex cases:

1.º That the yearly turnover of the taxpayer is higher of equivalent to the turnover required for audits of the annual accounts.

2.º That the Spanish taxpayer is part of a group subject to the tax consolidation rules and to the special rules of groups of entities object of the tax inspection.

In case the Spanish tax inspections are carried out against several persons or associated entities – agreement with LIS – and one of the aforesaid circumstances takes place, than the latter period will be applied for all persons and entities.

Interruptions or delays in the procedure are replaced by certain cases of suspension not included in the calculation of said periods. New version paragraph 1, article 150 of the General Tax Law:

Down Payment or Deposit (arras) in the Spanish purchase agreement

purchase contract in SpainNowadays most people that grant a purchase contract in Spain, know or have a general concept of the DOWN PAYMENT, but few people know that there are three different types of deposit which have each one different legal considerations according to whether we sign one or the other, so it’s important to know what you are signing and the consequences thereof.

The Civil Code sets out the down payment in just one article, Article 1454, which states: “If a down payment is determined in the purchase agreement, the contract may be terminated and the buyer would lose the sum or the seller would have to return twice the amount”.

Jurisprudence has distinguished three types of “Down Payment”, according to the role it has in the contract:

-Confirmatory Deposit (arras confirmatorias)

New capacities of the Notary with the Law of Voluntary Jurisdiction

Spanish notaryWith the approval of the new Spanish Law 15/2015 of July 2 of the Voluntary Jurisdiction, is increased the capacity in favor of the Notaries, Land Registers and Mercantile Registers, with a consequent decrease in workload at Spanish Courts and Tribunals.   Notaries in Spain may attend and resolve different queries in civil, inheritance, marriage, mortgage and even commercial matters, where there is no dispute between the parties and therefore the intervention of the Courts is unnecessary.   Therefore, it is increased in benefit of the individuals the numbers of professionals experts in law to solve different issues that up to date were reserved to the judiciary.   Among the most important capacities that Spanish Notaries can play with the new Law on Voluntary Jurisdiction, we find:

Possibility to publish Spanish tax information in the cases where such is imposed by the E.U. regulation

tax in SpainYou have a debts with Spanish national Inland Revenue?

A list of debtors with the Spanish Tax Office will be published periodically regarding debts and penalties that are not postponed or suspended, in the cases the total is exceeding 1 million euro and the tax has not been paid within the voluntary period. (new article 95. bis).

The reserved nature of this information established in article 95 does not stand in the way to its publication whenever such derives from the EU regulation (new paragraph 4 article 95 of the General Tax Law).

To determine these requirements, the reference date will be the 31.12 of the year prior to the agreement of publication.

Spanish Law 24/2015, of July 24, on Patents

Trademark in SpainFollowing general guide of the main points approved in relation with this law in Spain:

– Given the number of affected provisions and the nature of the changes since the previous  Law 11/1986 on Patents, not just enough a simple partial reform as to date.

– In 1986 all patents were granted by national route. Today we are over 90 percent of patents with effects in Spain by the European Patent Office (EPO).

– The purpose of the law is simplify and streamline the protection of innovation through patents and increase legal security, establishing as the single system for granting patents that of  prior examination of novelty and inventive step , the gradual implementation was originally planned in the Law of 1986.

Company Tax rates in Spain 2015 – 2016

company tax in spainOur team of lawyers and economists in Marbella, Arcos & Lamers Asociados, have the pleasure to provide you some information regarding the tax types of the new Company tax 2015 and 2016.

General type 28% 25%
Newly created entities except those that levy at a lower rate, shall apply this scale for the first period with positive tax bases and the next period 15% 15%
Entities with a turnover < 5 M€ and staff < 25 employees 25% 25%
Reduced Companies (turnover < 10M€), except for those that levy at a different rate than the general one Part of the tax base up to 300.000 € 25% 25%
Remainder 28% 25%
General mutual insurance companies and social security mutual insurance companies 25% 25%
Mutual guarantee companies
Professional associations, official chambers and employees trade unions
Non-profit organizations that comply with the law 49/2002
Pro-employment fund
Union and cooperative confederations
Public entity State Ports and Port Authorities
Comunities owners of community woodlands
Political parties (Art. 11 OL 8/2007)
Credit cooperatives and rural banks Result cooperatives 28% 25%
Result extracoop. 30% 30%
Tax-protected cooperatives Result cooperatives 20% 20%
Result extracoop. 28% 25%
Limited companies of investment on the real estate market (SOCIMI)  (Art. 9 law 11/2009) In general 0% 0%
19% (1) 19% (1)
Non-profit Entities that do comply Law 49/2002 10% 10%
Entities of the Special Area Canary Islands (Art. 43 Law 19/1994) 4% 4%
SICAV with certain conditions set out in art. 29.4 LIS that refers to law 35/2003 regarding the Collective Investment Institutions 1% 1%
Financial investment funds with certain conditions set out in art. 28.5.b) TRLIS
Companies and real estate investment fund with certain conditions set out in art. 29.4 LIS
Regulating fund of the mortgage market
Pension funds 0% 0%
Credit entities, as well as those dedicated to exploration, investigation and exploitation of Wells of hydrocarbons and other activities regulated in law 34 /1998 30% 30%

Changes in the law which rules the guarantees for payments on account of the price during the construction of a property in Spain

CONVEYANCING IN SPAIN(Please check our blog “Insurance for payments on account at the time of the purchase of a property in Spain”)

Law 20/2015, of July 14, management, supervision and solvency of insurers and reinsurers, has amended the Law Construction Planning in relation to the rights of individuals in the anticipated amounts paid on account during the constuction of a property in Spain.

– Several provisions of the Spanish“Law 57/1968 of 27 July, regarding the receipt of sums of money in advance for the construction and sale of homes. Modifications are introduced by the first additional provision of the Law Construction Planning, which main contents to the purposes of this blog, are detail as follow: