This matter is regulated in our legal system by the Spanish Law Royal Decree 515/1989, of 21 April on consumer protection, regarding information to be provided in the acquisition and renting on properties, in place since November 17, 1989.

The acquisition or rental of a dwelling is a fact of great importance in the life; therefore several aspects such as the building materials, expenses for the buyer and documentation to be delivered in the transaction are regulated.

The promoters must have available to the public the following information:

1. Name, domicile and registration details of the vendor entity or leasing company at the Mercantile Registry.

2. Location and specific floor plans of the property.

3. Useful area of the property and general description of the building.

4. Reference to the materials used in the construction.

6. Identification details of the registration of the property at the Land Registry.

7. Purchase-sale price or rent income and way of payment.

In the event of sale, the following documentation has to be available for the public:

a) Required legal authorisations for the construction or occupation of the property. (Such as building licence and licence of first occupation).

b) By Laws and rules of Community of Owners.

c) Information concerning payment of any taxes related to the property or its use.

 d)  Way in which it is intended to have the agreement documented, terms and general conditions of the contract.

 e) Date of delivery and phase of the construction at any moment.

 f) In the case of first transmission (new property sold by promoter), it will be indicated the name and domicile of the architect who intervened in the project and the name and domicile of the constructor.

If you want to wish to know more about the information and documentation required in the purchase and renting of your property,  please contact this Spanish law firm settled in Marbella. Buy a property in Spain with all your guarantees using the services of Arcos & Lamers Asociados, as we will advise and assist you at the signing of your purchase or rental contract and your interests will be protected. More information on the purchase process, taxes involved and selling procedure of a property in Spain can be found at “Conveyancing in Spain”

María Teresa Arcos, lawyer in Spain

Wim Lamers, Economist in Spain

Marbella, October 2013.

Property lawyer in Spain.

Spanish Law 4/2013 4th June, measures for flexibility and development of the rental property market.

In order to obtain a balance between the needs of lease of properties and the necessary guarantees for the landlord, in order to put properties at the rental market, the Law carries out a series of amendments on the following relevant matters

1º) Priority is given to the will of the parties.

2º) This Spanish Law reduces the duration of the mandatory extension from five to three years and from three to one year in the tacit extension.  Although the term of the lease will be agreed by the parties, when the contract is for a period of less than three years, it will  be extended by law  for annual periods until it reaches a minimum duration of three years.

3º)  The recovery of the property by the owner to be used as permanent home. In this case it would not be applicable the mentioned compulsory extension if, after the first year, the landlord informs the tenant about his need to use the property as permanent house.

4º)  The withdrawal from the Spanish contract by the tenant.  The tenant  may withdraw after six months and by notification to the owner with a least thirty days in advance. The parties may agree in the contract a compensation for the landlord.

5º) Sale of a rented property in Spain. The purchaser of a property registered at the Land Registry will only be subrogated in the rights and obligations of the landlord when the rental agreement is registered at the Land Registry,  not being damaged the buyer, by a lease not registered.

6º)  Update of the rent income. Income will be updated each year of the contract under the terms agreed by the parties. In the absence of express agreement, the rent will be updated on the basis of the general index system of consumer price.

If you wish to obtain additional information about the lease of your property in Spain or to review your rent contract, please contact us.  At Arcos & Lamers Asociados a professional will provide the necessary advice on the granting of your contract and will inform you in all your rights in Spain. Arcos & Lamers Asociados, your property lawyers in Spain, registered accountants (economists) in Marbella, Málaga, Spain.

Through the signing of a professional lease contract, your rights will be protected.

María Teresa Arcos, lawyer in Marbella

Wim Lamers, registered accountant (economist) in Marbella

Marbella, September 2013.

With effect from 28^th June 2013, the “ Spanish Law 8/2013 June 26 concerning rehabilitation, regeneration and urban renewal” has been approved, which is primarily aimed at the improvement of the energy efficiency of the “Spanish building stock”.

One of the main elements to mark about the new law is the called “Building Evaluation Form” (Informe de Evaluación de Edificios, IEE), which would a supplement to the not so old “technical inspection of buildings” (Inspección técnica de edificios, ITE).

The IEE is regulated under Title I of the new Spanish law and the main point to take into account are the following ones:

1. The IEE will identify the Spanish property, with its cadastral reference and shall contain in detail:

a) The evaluation of the conservation status of the building.

b) The assessments of the essential conditions for the accessibility and non-discrimination of those people with disabilities to access and use of the building, establishing whether the building is capable or not of reasonable accommodation.

c) The certification of building energy efficiency, with the content and by the procedure ruled by the applicable regulations (see our blogs on Certification part one and part two).

Many times we will find that by the regional or municipal regulations, there is already a “technical inspection of buildings” (Inspección técnica de edificios, ITE), where is contemplated points a) and b) above, therefore in these cases, only the certification referred in letter c) should be obtained.

2. This Spanish new law provides certain deadlines to dispose of that IEE, being:

a) Buildings of collective housing residential typology older than 50 years, the maximum term of five years from the date on which they reach that age, unless they already have a technical inspection in force.

b) Buildings whose owners intend to benefit for public subventions in order to undertake conservation works, universal accessibility or energy efficiency, prior to the execution of the corresponding application for these subventions.

c) The rest of the buildings, when so determined by regional or municipal regulations, which may establish application specialties of the mentioned IEE, depending on their location, age, type or predominant use.

3. When the IEE is made on behalf of the community or group of communities that refer to an entire building or building complex, will extend its effectiveness to all existing buildings and dwellings.

4. The IEE will have a periodicity of ten years, although the regions and municipalities may set a lower frequency.

5. The breach of duty to complete on time and form the IEE, will be considered urban infraction.

6. Acopy of that IEE must be submitted to the Public Organism that determines each region, so that this information is part of a integrated and sole registry.

7. Finally, and in order to not extend longer  and alter the purely informative nature of our blogs, to say that the IEE will be signed by qualified competent technician , ie those who are in possession of any of the academic and professional qualifications for drawing up building projects and execution management of building works.

Please do not hesitate to contact the English speaking Spanish lawyers and accountants in Marbella of Arcos & Lamers Asociados, lawyers in Spain and tax advisors inMarbella, we have an expert team ready to answer your questions and to provide legal and fiscal advice in Spain.

Approach the multilingual Spanish property lawyers of Arcos & Lamers Asociados for any legal, tax, labour and company advice you may need!.

Félix Ruiz, Lawyer in Spain

Marbella, August, 2013.

Conveyancing lawyers in Spain.

We often find situations in which clients arrives to our office who desire to buy a home in Spain, having paid and signed a “reservation”, “deposit” or “arras” document, a deposit for the purchase of the same, to be followed by document or private purchase contract, that in most cases does not contain the minimum legal requirements.

And sometimes we wonder, why going to the lawyer after paying a reservation of the property and not before?

In most cases, the not-resident purchasers, approach the corresponding Real Estate with their concern -otherwise normal- to lose the property of their dreams if the payment of the reservation is not done immediately, to “take the property out of the market”. However, as indicated, these documents lack in most cases, the minimum legal requirements to be met by any bilateral agreement between purchaser and vendor. Do not forget that the purchase is a contract between two parties and the reservation document should be the first step in that agreement.

It is true that in many cases, the “bargains” are short time in hands of Real Estate Agents, so the astute buyer should reserve them as soon as possible to prevent other potential acquirers. And we know that in those moments of it could be difficult to locate a property lawyer for advise. Do not hesitate to contact our firm as we are conveyancing lawyers and solicitors specialized in Spanish properties transactions.

Therefore, from this post, we would like to state 8 points to take into account at the time of signing a reservation document in Spain:

1. That the reservation contract contains full details of the vendors: full name, address and identity card (ID card, passport, NIE, Residence card ….)

2. It clearly identifies the object of purchase: house, villa, apartment, etc with the appropriate number and address as fully as possible. Also to identify elements attached to the property, such as storage or parking places.

3. Whether the property is transferred furnished, if any, attached to the reservation document an inventory of the furniture.

4. Total price of the sale.

5. Amount of the reservation and that the same will be deducted from the final price.

6. Clarify who assume the costs of the transmission. Generally all expenses and taxes will be paid by the purchaser with the exception of Plusvalia tax that will be paid by the vendor.

7. If the vendor is not present to sign the reservation document, indicate in the contract that the deposit paid shall be retained by the real estate agency until the signing of the Purchase Deed (or until the signing of a private contract with the vendor).

8. That reservation document is subject to study of the property by the purchase´r lawyer to ensure that the property is free of all liens and encumbrances and that complies with planning regulations in the area where the property is locate. Otherwise, the reservation must be returned to the buyers.

Once your reservation document is signed your lawyer in Spain should advise you properly during the process of buying property.

For additional information please click below:

1)      Purchase of a property in Spain guidelines

2)      Taxes and disbursements involved at the time of buying your home in Spain.

3)      Running costs of a Spanish property

4)      Procedure to take into account at the time of the sale.

5)      Taxes involved at the time of the sale.

Please do not hesitate to contact the English speaking Spanish lawyers and accountants in Marbella of Arcos & Lamers Asociados, lawyers in Spain and tax advisors inMarbella, we have an expert team ready to answer your questions and to provide legal and fiscal advice in Spain.

Approach the English speaking Spanish Lawyers of Arcos & Lamers Asociados for any legal, tax, labour and company advice you may need!.

Félix Ruiz, Lawyer in Marbella

Marbella July 2013

As already mentioned in a previouse post , in the event that you wish to sell or to rent your property in Spain, please note that you need to obtain an energy label which states the efficiency on energy level of your property.

This obligation is imposed by the regulation Real Decreto 235/2013 of 5th April, which states that when a property is built, sold or rented, buildings or units on the same, the owner has to show to the purchaser or tenant, original or copy of the Certification on energy efficiency, for those sale contracts or rental agreements granted after the 1^st of June 2013.

The certificate will have a maximum validity of ten years.

By obtaining the certificate, the owner will have the right to use the energy label. This energy label is to be included in every offer, promotion  or publicity towards the sale or rental of your property.

As owner of your property in Spain, in case of sale or rental, you have the obligation to obtain the mentioned efficiency on energy certificate, and to show the energy label on any publicity or offer for the sale or rental of your property.

When the property is to be sold, the certificate will have to be handed over to the purchaser. In case of rental, a copy of the certificate will be sufficient for the tennant.

When is this certificate required?

a) For new constructed buildings.

b) Buildings or apartments in the buildings to be sold or rented, when the certificate is not in place.

c) Buildings with a useful built area over 250 m2., used by public authorities and open to the public.

In the event that you need to obtain the certificate on energy efficiency for your property do not hesitate to contact us. The specialized property lawyers ofArcos & Lamers Asociados will assist you in obtaining the certificate so you may proceed with the sale or  renting of your property in Spain.

María Teresa Arcos, lawyer in Spain

Wim Lamers, economist in Spain.

Litigation law firm in Spain.

In a previous blog we talked about the first two chapters of the law 1/2013, of May 14, that entitles measures to strengthen the protection to mortgage debtors (see HERE). This Spanish law was published in the Official Gazette (Boletín official del Estado- B.O.E.) on 15.05.2013.

Arcos and Lamers Asociados, your leading litigation law firm in Spain would like to go deeper this time in two remaining chapters of the above mentioned law that is mentioned measures that affects the Spanish Civil Law (Ley de enjuiciamiento civil) providing additional protection to the borrowers of a mortgage facility in Spain and implementing instructions to the government of Spain to take steps for the creation of a social fund for properties.

Chapter 1 and 2: see HERE.

Chapter 3:

Amendments were made to the Civil Procedure Act (Ley de enjuiciamiento civil) in order to ensure that the execution of the mortgage facility, part of the foreclosure process, protects on a better way the interest of the borrower and with the intention to speed up the legal procedure in Spain.

In particular, as a measure of great relevance, establishing the possibility that the process to recover remaining debt may entitle a donation of the same, providing the compliance with certain payment obligation, if after an execution of a mortgage facility there are still outstanding amounts due.

It lowers the guarantee that one should settled at the court in order to be part of an action from 20 to 5% of the valuation of the property.

This law also doubles the time frame for the bidder of an auction to consign the price of the property among other improvements in the auction procedure.

Chapter 4:

Through this law, the Spanish Government is authorized to undertake the necessary measures to establish a social fund for properties to provide coverage to those who have been displaced from their primary residence for non-payment of a loan.

Feel free to contact with this litigation law firm in Marbella, Arcos & Lamers Asociados for any legal and tax advise you may need.

Are you a borrower of a loan in Spainand you have difficulties to fulfil your liabilities? Are you a lender of a mortgage in Spain and the borrower is not fulfilling his duties? Do you need Spanish legal and/or tax advise? Do not hesitate to contact the litigation lawyers of Arcos & Lamers Asociados for all your legal and tax advise you may need!

Maria Teresa Arcos, lawyer in Marbella

Wim Lamers, registered accountant (economist) in Marbella.

Marbella, July, 2013.

Inheritance in Spain

Besides our this general web site, our multi-lingual proactive law firm would like to invite you to visit the just launched micro web “Inheritace in Spain” by Arcos & Lamers Asociados.

At this new web we are providing deep going information on the following subjects:

1)      Spanish Inheritance procedure.

Here you will find a guideline of the steps to take into account at the legal procedure of an Inheritance in Spain. In addition, information on the Spanish law is provided.

2)      Inheritance tax in Spain, examples.

Information on Spanish Inheritance Tax is provided, The provided Inheritance tax scale would be applicable for non tax residents in Spain and may vary in the event that the heirs are fiscal resident in Spain.

3)      whether the national or regional law is applicable.

The collection of the Spanish Inheritance tax and the right to produce additional legislation to the National Inheritance law in Spain have been transferred to the different Regional Inland Revenue’s as per law 21/2001 of 27th December.  Here you will find the explanations on which law is applicable.

4)      information on drafting a Will in Spain, among others.

How to insure your love ones are protected in the event of the death of a relative? Arcos y Lamers Asociados, Spanish law firm settled in Marbella specialized in Spanish Inheritance procedures, recommends in any case, the granting of your Will in Spain before a Spanish Notary relating to your assets located in Spain, since it will mean in the future, a smooth streamlining in the procedure for acceptance and receiving the inheritance in Spain by the appointed heirs.

The English speaking accountants and tax lawyers of this law firm inSpain are always searching to find the best solution for its clients, taking advantage of the newest state of the art technology

Do not hesitate to contact this Spanish law firm for all your Spanish legal and tax enquiries.

María Teresa Arcos, lawyer in Marbella

Wim Lamers, registered accountant (economista) in Spain.

Marbella, July, 2013.

Inheritance in Spain

Besides our this general web site, our multi-lingual proactive law firm would like to invite you to visit the just launched micro web “Inheritace in Spain” by Arcos & Lamers Asociados.

At this new web we are providing deep going information on the following subjects:

1)      Spanish Inheritance procedure.

Here you will find a guideline of the steps to take into account at the legal procedure of an Inheritance in Spain. In addition, information on the Spanish law is provided.

2)      Inheritance tax in Spain, examples.

Information on Spanish Inheritance Tax is provided, The provided Inheritance tax scale would be applicable for non tax residents in Spain and may vary in the event that the heirs are fiscal resident in Spain.

3)      whether the national or regional law is applicable.

The collection of the Spanish Inheritance tax and the right to produce additional legislation to the National Inheritance law in Spain have been transferred to the different Regional Inland Revenue’s as per law 21/2001 of 27th December.  Here you will find the explanations on which law is applicable.

4)      information on drafting a Will in Spain, among others.

How to insure your love ones are protected in the event of the death of a relative? Arcos y Lamers Asociados, Spanish law firm settled in Marbella specialized in Spanish Inheritance procedures, recommends in any case, the granting of your Will in Spain before a Spanish Notary relating to your assets located in Spain, since it will mean in the future, a smooth streamlining in the procedure for acceptance and receiving the inheritance in Spain by the appointed heirs.

The English speaking accountants and tax lawyers of this law firm in Spain are always searching to find the best solution for its clients, taking advantage of the newest state of the art technology

Do not hesitate to contact this Spanish law firm for all your Spanish legal and tax enquiries.

María Teresa Arcos, lawyer in Marbella

Wim Lamers, registered accountant (economist) in Spain.

Marbella, July, 2013.

Litigation lawyer in Marbella.

The multi-lingual Spanish law firm,Arcos & Lamers Asociados, your litigation lawyer in Spain, is pleased to provide additional information on the Spanish Law 1/2013, of May 14, on measures to strengthen the protection to debtors of a mortgage inSpain. This Spanish law was published in the Spanish Official Gazette (Boletín Oficial del Estato- B.O.E) on 05.5.2013.

This law is passed as a result of the exceptional circumstances that Spain is facing, motivated by the economic and financial crisis, creating difficulties to meet with the mortgage liabilities to many people who purchased their home in Spain.

Law 01/2013 consists of four chapters. Although this blog is providing deeper information on the first two.

Chapter 1:

It provides the possibility of immediate suspension and within two years of the evictions of families who are in a particular risk of exclusion.

This measure, exceptionally and temporarily affects all legal procedure of execution of Mortgage facilities or extrajudicial sale foreclosure in the event that the borrower is belonging to certain groups.

Two types of legal requirements should be met in order to apply to the conditions mentioned in this chapter:

A) On the one hand, this chapter will be applicable to large families, single-parent families with two dependent children, those with a child less than three years old where a disabled member or dependent lives.

B) In the borrower of the Spanish mortgage is unemployed and has exhausted the social benefits or, finally, are victims of domestic violence.

Chapter 2:

A limitation appears on default interest rates on mortgage facilities granted on residential homes. The interest on default will be limited to three times the legal interest mentioned and publicised at the law inSpain. Also explicitly prohibits capitalization of these interests, so that the outstanding interest is not generated additional interests.

This law introduces the possibility that the notary can suspend an extrajudicial sale  when the parties can prove that it has requested to the corresponding court, as by Article 129 of the Spanish Mortgage Law, to issue resolution that unfair terms do exist in the conditions of the loan.

Feel free to contact this law firm in Marbella,Arcos & Lamers Asociados for consultation and legal tax matters in Spain.

Are you a borrower of a loan in Spain and you have difficulties to fulfil your liabilities? Are you a lender of a mortgage in Spain and the borrower is not fulfilling his duties? Do you need Spanish legal and/or tax advise? Do not hesitate to contact the litigation lawyers of Arcos & Lamers Asociados for all your legal and tax advise you may need!

Maria Teresa Arcos, lawyer in Marbella

Wim Lamers, registered accountant (economist) in  Marbella.

Marbella, June, 2013.

COMPANY TAX IN SPAIN

What does the Company Tax in Spain entitle?

The Spanish Constitution of December 27, 1978, provides in Article 31 that we all should contribute to the maintenance of public expenditure according to our economic capacity.

One of the most direct definition of “economic capacity” of a person is the  total income that is perceived, measured over a period of time. When income is obtained by individuals, the Spanish tax system does called Spanish Income Tax (IRPF- Impuesto sobre la renta de las personas físicas).

However, if the income is generated by a legal entity (company, association, foundation, etc..), than instead of Income tax we would call it  Company Tax (I.S. Impuestos sobre sociedades). In this sense, the company tax in Spain is complementary to the Income Tax of Individuals.

The company tax as a Spanish tax liability should be considered with a “direct”character and with a “personal” nature.

* Direct character because the company tax is a direct manifestation of the economic capacity of the taxpayer.

* Personal nature, because it takes into account particular circumstances of each taxpayer as it is calculated on the profit that appears of the Profit and Loss account of each legal entity.

We inform you that in general terms and for companies inSpainwith a turnover of more than 10 million Euros the following tax rates must be taken into account:

-          30% for the first 300,000 Euros profit.

-          35% for any further profits.

The Small and Medium Entities (so called PYMES)  that in general have a turnover of less than 10 million Euros and have less than 25 employees must take into account the following rates:

-          25% for the first 300,000 Euros profits

-          30% for any further profit

As per Royal Decree – Law 4/2013, of 22^ndFebruary, new measures have been approved for the entrepreneurs to stimulate growth and creation of employment in Spain.

Article 7. Incentives for newly incorporated companies in Spain.

For the purposes of the tax periods starting on 1^st January 2013, the following modifications, amongst others, must be taken into account:

1. The newly incorporated companies, set up from 1^st January 2013, that carry out economic activities, shall pay taxes in the first period in which the taxable amount is positive and in the following period, according to the scales below:

a) For a tax base between 0 and 300,000 Euros, at the rate of 15%.

b) For the remaining tax base, at the rate of 20%.

Of course, some limitations on the previous mentioned exceptional reduced Spanish company rates should be taken into account. Additional information on this subject can be found here.

Do not hesitate to contact one of the professionals of this leading law firm in Spain, Arcos & Lamers Asociados in the event you have any legal, tax, labour or accountancy inquiry.

María Teresa Arcos, lawyer in Spain.

Wim Lamers, Economists in Spain.

Marbella, June, 2013