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New regulations to the holiday rental market

turistic property in spainDue to the increasing number of new ways to travel, the Regional authority here in Andalucía so known as “Junta de Andalucía” has decided to regulate the properties that offer the service of tourist accommodation in order to establish minimum guarantees of quality and safety for the tourist equipment users.

This new regulation involved those properties that are rented in its whole and which are rented out for rooms, not including those renting for more than two months time, holidays without profit, properties in rural areas and real estates formed by three or more homes.

La Junta de Andalucía establishes a series of requirements to be met:

Tax liabilities for non residents in Spain; Non resident tax

Tax in SpainRental – Deemed Income Tax in Spain.

All non residents owning a property in the Spain Territory have the legal obligation to present a Non Resident’s annual Tax Return.

Even if your Spanish property is left empty or you do not rent it out to a third party, the Spanish Law presumes a “Deemed Rental Income” and all owners of the same are required to fill up a personal tax declaration and issue the corresponding payment due.  The tax to be paid should be calculated annually as it depends on several factors which may vary from one year to another.    For more information on see our blog:

https://www.arcos-lamersasociados.com/1728/taxation-related-to-spanish-properties-for-non-residents-part-2-income-tax-in-spain/

During 2015 there was a revision of the tax rates applicable to the Income of all Non resident Tax Payers in Spain without permanent establishment.   See table below stating the general tax rate standpoint:

Regulation of contracts at the Spanish Civil Code

SPANISH CONTRACTSThe Spanish Civil Code, in its articles 1254 et seq., states that the contract exists since one or more persons agree to force, to any service or to give something. The parties may agree on the conditions that they consider applicable, always when they are not contrary to the law, morality or public order.

In order to be able to contract on behalf of another, anyone must be authorized or must have granted by law the legal representation, otherwise, the contract in Spain will be void, unless it is ratified by the person on whose behalf the contract has been granted, and this, before it is revoked by the other party.

The article 1261 establishes the following requirements for the validity of contracts in Spain:

Community of property owners in Spain. Regime of private real estate developments (art. 24 Horizontal Property Act)  

 
Lawyer in Spain

Lawyer in Spain

This blog came from a query made by a client, a homeowner who is part of a Spanish community of owners, with the particularity that each house has small garden plot and relief. At the last Annual General Meeting was agreed that the Community of owners may carry out maintenance works and repair of the properties that are part of it, although up to date had been the owners, each of them individually and to their cost, who were carrying out the maintenance thereof.

To this effect and regarding this query, the undersigning lawyer in Marbella wish to point out the following:

Liabilities in the acquisition of a company in Spain

company in SpainA matter to be considered in the purchase of a business in Spain is the responsibility of the acquired company, since the mere acquisition, change of name, or reorganization of  the company, does not release the liability to the acquired company.

In this regard, the Spanish Supreme Court in its Ruling of 16th December 2015, establishes that the criteria that should prevail when it comes to decide  the economic responsibilities in the succession of companies,  is the permanence of an economic and business activity or, in other terms, the substantial identity between the successive companies.

For this reason, it is only released the responsibility of the acquired Spanish company when the economic and business continuity is broken.

Appeal to the agreements of the community of owners in Spain

appeal in marbella spainAppeal to the decisions taken at the meeting of a community of owners in Span. In the event that you consider that your interests could be injured, you should be aware that you can present an appeal against an agreement adopted in the Board of proprietors of the Community, provided that the following circumstances appear:
  1. a)When this agreement is against the Law or against the By Laws of the Spanish Community of owners.
  2. b)When the agreement is severely injurious to the community, and for the benefit of one or more owners.
  3. c) Where it involves a serious prejudice for any owner who does not have legal obligation to support it, or when adopted with abuse of right.
  Owners entitled to challenge will be those who have saved their vote at the meeting of the community, the absent ones and those who had wrongly been deprived of their right to vote.

Regulation of the contracts at the Spanish Civil Code

contract in SpainThe Spanish Civil Code, in its articles 1254 et seq., states that the contract exists since one or more persons agree to force, to any service or to give something. The parties may agree on the conditions that they consider applicable, always when they are not contrary to the law, morality or public order.

In order to be able to contract on behalf of another, anyone must be authorized or must have granted by law the legal representation, otherwise, the contract in Spain will be void, unless it is ratified by the person on whose behalf the contract has been granted, and this, before it is revoked by the other party.

The article 1261 establishes the following requirements for the validity of contracts in Spain:

Possibility to examine the accountancy submitted voluntarily by the taxpayer in the limited control procedure in Spain

tax inspection in SpainIs your company being subject of a limited control procedure of Spanish Inland Revenue? Then take into account the following aspects:   In general, the Tax Office in Spain may not examine the accountancy of a trade company by means of a limited control procedure.   Now, the new version (modification paragraph 2.c) of article 136 of the new General Spanish Tax Law) allows them to examine the accountancy of a trade company during a limited control procedure provided that the following conditions are being fulfilled:

How to settle bills at international trade

international trade in spainThe manner to settle bills at international transactions are practically the same as in domestic trade, although they have some differentiating factors.

The way of settling bills can be classified according to whether or not are subject to both, financial and commercial management of documentation:

  1. Simple alternatives of payments.

The liabilities and legal actions against Directors of a Spanish S.L. Company

 court case in SpainArticle 241 bis of the Spanish Companies Law (Ley de Sociedades de Capital ) states  that the action of liability against directos and or administrators, social or individual action, expires in four years from the day that would have been able to be exercised.

Such action, when a damage caused by acts or omissions contrary to the Spanish Law or to the By-Laws of the Company,  or for breach of duties inherent to the position of Director, will be started by the Company, once adopted in a General Meeting, and at the request of any shareholder of the company in Spain.

Likewise, the General Meeting may waive the exercise of such action, provided that there is no opposition from the shareholders representing 5% of the share capital.