Are you inheriting a property in Spain? Or are you receiving gift property? The taxes to be paid are Successions/Gift tax and Capital Gains Tax (Plusvalía).

Successions Tax

When you inherit property after somebody dies.

When you are the beneficiary of a life insurance policy and the insured person dies.

Gift Tax

When somebody gives you his/her property while he/she is alive.

Who has to pay the tax? Where and when?

a) Mortis Causa (when somebody has passed away) The tax has to be paid by the heir getting the property. The heirs are named on the Will. If you are named on a Will but do not accept the inheritance, you do not have to pay the tax. If there is no Will, the heirs will have to be appointed by a Notary or Judge. Normally if there are children, they will be the heirs in the first place. The tax has to be paid where the deceased person had his/her domicile if he/she was a Spanish resident. If he/she was not a Spanish resident, the successions tax has to be paid where the property is located.

b) Life Insurance. The beneficiaries have to pay for the tax. The tax has to be paid where the deceased person had his/her domicile.

The term to pay the successions tax is of 6 months starting at the date of death. If the tax is not paid within the 6 months, you will have to pay a late fee.

c) Gift. The donee or person receiving the gift has to pay for Gift tax. The tax has to be paid where the donee resided. If the donee is not a Spanish resident, the tax has to be paid where the gifted property is located.

The term to pay the tax is when you receive the gift.

Plusvalía (Capital Gains Tax)

The Plusvalía tax has to be paid when receiving a property (inheritance or gift) and when the property is sold. If you receive a property and then sell it after one year, you will have to pay the Plusvalía tax twice, at the time you receive the property and at the time you sell it. If you sell the property you have received within the first year, you should pay the tax just once.

The tax has to be paid to the city council.

The term to pay the tax is 6 months.

The tax is calculated by the council and takes into account the increase of the value of the land and other details as future value. This is why sometimes we are required to pay the tax even if we have lost money with the sale. The Spanish Supreme Court ruled that if there is no actual gain when selling a property, the council should not charge the tax and the taxpayer has the right to claim it back.

Claiming it to the city council can be very complicated because if they do not solve the problem out of court, you should send a claim and the cost of hiring a lawyer and court representative is normally higher than the tax to pay. So the councils just wait to be sued because most people will not waste their money on this.

We are the first law firm to win the first Judgement that set precedent for deposit reimbursement according to Ley 57/1968 at the Spanish Supreme Court.

We set a precedent that helped to successfully recover the deposits of many clients who thought that had lost their savings because the property was not completed and the builder went bankrupt.

According to the new Judgments and precedent set, we can claim the bank that received the payments into the builder’s bank account or the bank that issued general bank guarantees.

We can claim the amounts paid for the property plus interests since the payments were made and legal fees.  If the bank is sentenced to pay, you will get your money back because banks are solvent and always comply with the Judgement.

You don’t need to have sued the builder/developer in advance. You can directly sue the bank without having claimed the deposit paid to the developer.

We have won many cases for clients who bought to HERRADA DEL TOLLO-SAN JOSÉ, EUROHOUSE, TRAMPOLIN HILLS, CAMPOSOL, TORREVISA, etc.

If you bought an off-plan property that was never completed or you never got the Title Deeds, please contact us and we will recover your deposits. We can offer NO WIN-NO FEE for most cases.

With Cc Lawyers help, you can get a divorce very easily at a Spanish Notary without visiting the Notary or even coming to Spain.

There was a law passed in 2015 in Spain allowing Notaries to celebrate marriages and also grant divorces.

However, not everyone can get divorced at the Notary, there are some requirements. If you meet those requirements you can divorce at a Notary and you will not need to go through Court which is slower.

The requirements to get divorced at a Spanish Notary are:

-Mutual Agreement Divorce (amicable)

-No children between the spouses

If you had children or it is not an amicable divorce, we will deal with the divorce at Court. You should know that to get a divorce in Spain, your last address in common has to be in Spain, otherwise, you will not be able to get divorced in Spain.

The Notary will need a divorce settlement agreement signed by the spouses. Cc Lawyers will help you drafting this document on your behalf to make sure that it is according to Law.

We can also act on your behalf before the Notary to get divorced with power of attorney.

Therefore, you will not need to attend the Notary if you grant us power of attorney to deal with the divorce on your behalf.

If you own a property, we can also help you with the transfer to one of the spouses or with the sale of the property.

Contact us and we will advise you on your specific situation and will inform you about the documents needed.

Every legal consultation is free!

Timeshare in Spain is or was very typical, especially in the Canary Islands or Málaga.

We all know the story: “Tourists were sold holiday weeks in resorts or holiday clubs with very aggressive selling techniques. Customers were asked to sign the contracts and deposit paid immediately before the one-day offer was canceled. They convinced customers that it was an investment and that they could sell their timeshare contract very easily in the future. Unfortunately, that was not the truth. Furthermore, there were maintenance fees and charges that were increasing every year and that couldn’t be afforded by some of these timeshare owners.  Some of the timeshare owners even took loans to afford these fees that were higher and higher. They were told that they could pass their investment to their children, but what they thought they were passing were just debts an high charges for a week that they could almost never book.”

Sadly, this is a very common story. However, if you find yourself in this situation, we can help you get rid of your timeshare contract if one of the following applies to you:

  • Payments and deposits made (or signing a loan) within two weeks of signing the contract (or before 3 months since signing the contract).
  • Floating weeks (not having a fixed week for a specific property).
  • Perpetual contracts (50 years or more or without time limit).

If this is your case, contact us because you have the opportunity to cancel your timeshare contract and claim the amounts you paid for it.

The Spanish Supreme Court ruled that timeshare contracts with just one of the before mentioned characteristics are unenforceable and void. Especially, contracts signed since 1999.

Timeshare owners are winning the claims and the contracts are declared void according to Spanish Law and the precedent set by the Judgment of  Spanish Supreme Court on 15th January 2015.

Warning! If you bought a property bargain in Spain, the Spanish tax office might require you to pay extra tax!

The Spanish property market is low and properties are being sold at low prices, but the Spanish Tax office still wants to get the transfer tax according to their property value.

The tax office has a value for each property that is not always according to the market. When buying a property, the tax is paid according to the sale price, and if the sale price is low, the tax will be low, and the tax authorities might not like it. Therefore, they have a minimum value established for each property, and when the property is transferred, the tax authorities might check the sale. So what happens if the tax paid is not the right one? They will require you to pay an extra tax.

The tax office has up to 4 years to claim you to pay the tax.

Cc Lawyers Alicante advice:

If you are buying a property at a low price, we advise you to make sure that the price is according to its minimum tax value. If the price is under its minimum value, and you think that the sale price is realistic and fair, you should get an appraisal before the purchase or before doing any works or renovations on the property. If you get the appraisal before the purchase, you can ask the Notary to include it in the Deeds. Therefore, the tax office will see the report with the property value and this might stop them from claiming anything. At least the tax authorities will know that you will fight the extra tax in case they claim you.

If you receive the extra tax claim, you can appeal it. For appealing it you must get an appraisal, but if the tax authorities claim you the tax difference 3-4  years after you purchased it, the property value might have raised (renovations, higher market, etc.).

Cc Lawyers Alicante will check the minimum value of the property for you and will inform you if the sale price meets the tax office requirements. If it doesn’t, we will advise you to get the appraisal in case you have to appeal.

Checking the minimum value is included in our property purchase service.

You can contact us here.

Cc~Lawyers will protect your interests and will make the purchase of your property in Spain a stress-free experience

The steps to follow after a car accident will depend on the gravity of the accident but here you have a general guide:

1- Stop, turn on the hazard lights and keep calm.

2- If you think that the situation is serious, please call 092 or 112 so they can send the Police and an ambulance.

2-Before anyone leaves the car, put on the reflective vest. No one should leave the car and walk on the road without the vest, it is mandatory in Spain.

3- Place one warning triangle behind the car (approx. 50 m) and another at the front (approx. 50 m).

4-If the accident is not serious and everyone involved can keep driving, please take pictures of the scene and try to move the cars off the road.

5-You and the other driver/s have to write the details of the accident in the form provided by your insurance company. Please write down the contact/personal details and plate number of anyone involved. If the parties don’t agree you have to call the police.

6-If you crash or hit a parked car, you should call the police and report the accident so they can find the car owner.

7-If there are injured people, please don’t move them. If you know first aid basic rules please help. Please stay at the accident scene until the police or ambulance arrives. Witnesses of a car accident have to stay and help until the police or ambulance arrives. Not helping and leaving the scene is a crime in Spain. If there is someone else helping, you don’t have to stay.

Once the police arrive on the scene, they will write down the accident report with the information of the people involved, who is liable for the accident, the charges, etc.

You will have to be ready for a drug or alcohol test in order to determine if the parties were drinking or taking drugs.

In any case, you have to notify the insurance as soon as possible.

IMPORTANT: If you have been injured, you need to keep all the doctor or hospital reports as well as bills and other expenses due to the accident. If the police give you a copy of the report or any document, please keep these too.

We can help you claim the insurance company for compensation. We do not charge per consultation so contact us to get legal advice.

The Occupation Permit or First Occupation Permit (Licencia de Ocupación) is a permit granted by the city or town hall when a property is built.

This permit certifies that the property is legal and that it is in a habitable state.

When buying an off-plan or new build property, we advise you to request the first occupation permit to the builder or agent to make sure that the property is legal.

In the Alicante area, a Second Occupation Permit is required when you sell your property or when you buy a second-hand property.

You will need this permit for changing the utilities’ contracts or if you want to do some works at the property.

In order to get the Second Occupation Permit, an architect will have to visit your property.

The architect will write a report describing the property and certifying that it is in a habitable state.

Then, this architect’s report must be taken to the city or town hall. The Town Hall will stamp the form with the Permit and will require you to pay for a tax.

The costs involved with the permit will depend on the architect fees and the city or town hall tax.

Apart from the visit to the property, a copy of your Deeds, your NIE number, and the last IBI tax receipt will be required.

The permit will take approximately 15 days and it will depend on the town hall.

Here you have a link with the Second Ocupation permit information from the Alicante city hall

The Act ruling about evictions in Spain (for squatters) has been modified recently.

This measure aims to solve the problem of people entering into empty properties.

In Spain, if someone entered to live in your property (your holiday home, a second residence, or just your home) illegally you had to sue them and take them to Court to evict them.

If you ever find yourself in that situation, we advise you not to take any measures to force the squatters out of the property. If you cut the electricity or water or threaten them in any way, this could play against you.

A Court Case takes time in Sapin and an Eviction claim can take many months to be solved by the Court. In the meantime, you can find yourself in the street and someone living in your property for free (or without your consent) and there is nothing you can do.

In order to solve that problem, the Act ruling about evictions has been amended for these specific cases.

If there is someone living in your property without a title (rent contract or your consent) you can sue them. You don’t need to know their identification information. You can just sue the people living on your property. With the claim, you have to present evidence that you are the owner (updated information from the Land Registry-Title Deeds) and request the immediate eviction.

With the acceptance of the claim, the Court will order these people to present evidence of their right to be on your property IN FIVE DAYS. If they don’t present evidence, the Court will immediately order the eviction and will return you the possession of your property.

Everyone was asking for this amendment of the Law and is very good news.

Now, we will not have to wait months to evict someone who is illegally living in our property.

You can read the full Act Amendment here.

Please contact us if you require further information or if you need to evict someone living in your property. Every consultation is free.

A case of a client who bought a property in CAMPOSOL (MURCIA) won against BANKIA at the First Instance Court no. 4 in Alicante.

We have won a case against Bankia for our clients, who purchased a property in Camposol, Mazarrón (Murcia).

The properties never got the occupancy permits and the clients lost the deposits paid to the builder.

Our case was based on the precedent set by the Judgement from the Spanish Supreme Court in December 2015.

The legal grounds that we used in our claim against BANKIA are: if the deposits were paid to any of the developer’s bank account, those deposits have to be refunded by the bank.

So it doesn’t matter if the property buyer didn’t have a guarantee (general or individual) nor if the buyer paid the deposit to a special bank account.

The Judge sentenced the bank BANKIA to return the deposit paid by our clients plus interests since the deposit was paid to the developer’s bank account.

The Court has also decided that the bank has to pay for our clients’ legal fees for this case.

We are very happy with the Judgement because we will help our clients to get their deposits back after 16 years.

If you are one of the buyers who purchased a property  in Camposol,  please contact us and we will study your case and will give you free legal advice.

We are happy to announce that the bank Caixabank has to refund deposit, interests and legal fees because we won the Appeal case at the Appeal Court in Murcia for a client who bought a property at Trampolin Hills Golf Resort.

Our case was based on Ley 57/68 and the precedent set by the Judgement we won at the Spanish Supreme Court on the 23rd September 2015.

The legal grounds used in our claim against La Caixa are: the bank which issued general bank guarantees has to guarantee the deposits paid by every buyer.

If you bought a property at Trampolin Hills and you lost your deposit, please contact us and we will help you with recovering your deposit, interests and legal fees.

The bank LA CAIXA has to refund the deposit paid by our clients plus interests since the deposit was paid to the developer’s bank account.

Ley  57 1968. Case won at the Appeal Court Section 1 in Murcia against Caja de Ahorros y Pensiones de Barcelona “LA CAIXA”.

We have won the Appeal case against La Caixa for our clients, who purchased an off-plan property from the developer TRAMPOLIN HILLS S.L. in Trampolin Hills Golf Resort, Murcia.

We are very happy with the outcome and we would like to congratulate our clients.

There is precedent from the Spanish Supreme Court regarding this type of cases. However, the Courts are deciding for and against the clients for exact cases.

Therefore, a Judgement from the Appeal Court in Murcia confirming the Judgments from the 1st Instance Courts is very good news.

The bank LA CAIXA has to refund the deposit paid by our clients plus interests since the deposit was paid to the developer’s bank account.

The Court has also decided that the bank has to pay for our clients’ legal fees for the appeal too.