Buying guide

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Steps to take into account at the time of the purchase of a property in Spain (buying guide):

1. Seek the property that suit with your dreams and economic conditions.

2. Consult with pertinent property agents and obtain advice on the property of your dreams.

2. Prior to make a downpayment, consult with your Lawyer who will advise on the legal status of the property and all the steps to be followed in the process of buying your home.

4. Duly advised by your lawyer in Spain, book your property with settlement of a deposit and signing a private contract.

5. Application for your Non-Residence Certificate and NIE document, for any action you make in Spain with financial implications.

How to avoid subsidiary liability of Spanish tax debts of a supplier?

Spanish tax responsabilityOnly paying the invoice of your suppliers in Spain is not enough! In order to avoid fiscal liabilities of your suppliers it is not enough to just ask for your invoice and pay the sum due. The fiscal advisors of our law firm in Marbella have the pleasure to inform you what is recorded in article 43.1.1f) of the General Tax Law in Spain.

1) The following persons or entities will be subsidiary liable of tax debts in Spain:

f) Persons or entities that contract or subcontract the execution of works or rendering of services related to their main economic activity, shall be liable of the Spanish tax obligations related to taxes that must be passed on or amounts that must be withheld of employees, professionals or businessmen, for that part that corresponds to the works or services object of the contract or subcontract.

Revocation of a power of attorney in Spain

Spanish power of attorney in MarbellaA Spanish power of attorney is a document that is granted before a public notary, whereby the grantor, whether an individual or a company, authorizes another person to act on its behalf by granting general faculties to act as its representative, or by a special power to conduct a specific transaction.

In order to act on behalf of the grantor, the attorney must prove such representation by exhibiting the original power of attorney.

 Powers of attorney could be granted for an indefinite term or for a limited time.

Once legal affairs have been conducted, it would be advisable to proceed with the revocation of the power of attorney. This revocation must also be granted in the presence of a notary, who must notify the attorney who is involved.


License of First Occupation in Spain

Licencia de primera ocupación

When a client instructs our multilingual law firm in Marbella to study the legal situation of a property they would like to acquire, one of the essential documents to retrieve is the Spanish Licence of First Occupation (LFO) corresponding to this property.

The Spanish LFO is a document usually issued by municipal authorities (municipalities). It aims to ensure that the building in question complies with the conditions imposed by the (not expired) building license permission, which would have been granted at the commencement of the works and the conformity of these works with the technical project that was the basis for granting the building license. In addition, with the LFO, we may confirm that the building’s construction complies with the appropriate health and safety standards.

The essential subject of this license is the initial occupation and use of buildings as well as the elements adjacent to them (such as storage rooms and garages, which are an integral part of the whole building). The pertinent LFO in Spain is also required for those works of extension, modification and rehabilitation involving a technical project and a necessary perusal of health and safety by the municipal technicians.

Steps to be taken after the granting of your purchase sale Title Deed in Marbella, Spain

property lawyer in marbellaOnce you have become owner of your Spanish property, you will have to carry out the following formalities, in order to have your property registered in your name at the Land Registry in Spain.  Please note that this is not an automatic procedure after the signing of your public Spanish purchase deed in Marbella. The steps are to be taken by the new owner, in order to proceed and finalise the registration at the Registry as soon as possible.

1.- Payment of taxes in Marbella, Spain.

Once you have acquired your Spanish property, you will have to proceed with the payment of the taxes arising in the purchase.

Legal advice for setting up a Spanish S.L. company in Spain.

company in spainOur Spanish law firm in Marbella, Arcos & Lamers Asociados, will advise you on the type of company that would be best for you to establish, taking into account various factors such as social capital, the number of partners (shareholders) that will integrate the Spanish S.L. company, the company activity and who will exercise the function of company director.

To establish a limited company, you must have minimum initial capital of €3,000.

The requirements to set up a company are as follows:

Spanish tax Calendar – 3rd Quarter 2014

spaanse belastingMs. Sara Duarte, English speaking tax adviser in Marbella has prepared a Tax Calendar 2014.  The information included in this Spanish tax calendar regarding the 3rd Quarter 2014 is general information and will focus on the tax obligations relevant to a majority of the clients of our firm.  For this reason not all tax obligations and declarations will be included.  If you require information on a specific tax obligation or declaration not included on the calendar please contact us and we will advise you accordantly.

JULY 2014


Up to 21st July:

Income and Corporative Tax in Spain

Sellor´s guide

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If you have decided to sell your property in Spain, the multilingual lawyers of our firm in Spain would advise you to proceed with the reading of the following tips. Here, you will learn what documents should be prepared, who must sign the sale’s Title Deed in Spain and what Spanish taxes you must settle at the time of the sale.

First, we advise that you contact a real estate agent in the area. As a professional, he or she will be able to help you to find a buyer for your home, and will advise you about the sale, market circumstances and preparation of an inventory of the items that will remain in the property.

The documentation to be prepared for the sale should include the following:

The Barter Contract in Spain

property in SpainThroughout history, man has exchanged property, a practice commonly known as bartering. In the legal world, this form of business is reflected in the barter contract:

The Spanish Barter is a contract whereby one of the contracting parties undertakes to give a thing to receive another (Article 1538 of the Spanish Civil Code).

There are several important characteristics of the barter agreement:

Tax in Spain, Spanish Transfer Tax at only 2%

belasting in SpanjeTax in Spain. To determine whether you may pay only the 2% transfer tax in Spain, we must analyse article 25 of the Legislative Decree 1/2009 of 1 September, which presents the approved consolidated text for the Autonomous Community of Andalusia’s provisions on assigned taxes. This law allows a reduced Spanish tax rate on onerous real estate transfers involving real estate to be resold by professional real estate companies or promoters.

1. Under the modality of onerous real estate transfers and stamp duties, a 2% transfer tax rate is applied in Spain on the acquisition of a dwelling by a natural person carrying out an economic activity to which the adjustment regulations of the General Chart of Accounts of the Real Estate Sector are applicable, provided that the following requirements are met: