The Spanish Constitutional Court has decided that the Regulations regarding the Plusvalia Tax are unconstitutional if there is no wealth increase.

But, what is the Plusvalia Tax?

This tax is like a capital gains tax. It is a tax that the seller of a property has to pay that is or should be calculated on the price difference when the property was bought and now that it is sold or transferred or inherited.

For example, if you bought a property in Spain for €125,000 in 2000 and you sell it for €160,000 in 2017, you have a profit and capital gains and you have to pay a tax for this difference in price.

However, the Ayuntamientos-City Councils- (the ones in charge of this tax) were charging the sellers with this tax even if they were selling their properties for less than when they bought them.

For example, if you bought a property in Spain for €160,000 in 2000 and you sell it for €125,000 in 2017, you don’t have a profit and you are losing money but you had to pay a tax anyway.

This is not fair and the Spanish Constitutional Court has decided that the Regulations regarding this tax are unconstitutional and if there is no wealth increase, and it can be proven, then the Ayuntamiento cannot charge you with the Plusvalia Tax.

Now the Rulings regarding this tax will have to be changed because they are declared to be unconstitutional.

 

We are happy to announce that we won a case at the 1st Instance Court in Murcia for a client who bought a property at Trampolin Hills Golf Resort.

Our case was based on Ley 57/68 and on 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 are one of those buyers, please contact us and we will study your case and will give you free legal advice.

Ley  57 1968. Case won at the First Instance Court no. 10 in Murcia against Caja de Ahorros y Pensiones de Barcelona “LA CAIXA”.

We have won a 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.

At the moment, there is a big confusion and legal controversy regarding the bank’s liability in the cases with regards to the developer TRAMPOLIN HILLS S.L. at the Courts in Murcia.

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.

Our case was based on Ley 57 1968. The bank which issued a general bank guarantee should cover the deposits paid for every client who purchased an off-plan property.

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 this case.

The most common type of company in Spain is self-employed worker and limited company

a) Self-employed worker (autónomo)

You should register yourself with the Spanish Tax Office and the Social Security.

Once you have done this, you can start working and can start issuing invoices for your work. You will have to apply VAT (I.V.A.) and then you will have to present the VAT returns every three months and the income tax return (declaración de la renta) once a year.

b) Limited Company (S.L.-sociedad limitada)

How to set up a limited company in Spain:

1-Get the NIE number, which is the Spanish foreigner identification number.

Getting the NIE number is mandatory for most paperwork. Here is a link from the Spanish Government

2-Get the company name certificate from the Companies House in Spain (Registro Mercantil)

This certificate will inform you if the name that you want for your company is available or not. This certificate can be requested at www.rmc.es.

3-Get your Spanish tax identification number (C.I.F.) from the Spanish Tax Office (Agencia Tributaria)

4-Open a bank account for the company and deposit the share capital

The minimum share capital in Spain is 3,000 Euros. Once you have deposited the share capital, you will have to get a bank certificate.

5-Establish the company with a Spanish Notary

You should get an appointment with a Notary to establish the company as well as to sign the deeds of Incorporation. Once you have done this, you should get the original document of the Deeds of Incorporation.

6-Register the original Deeds of Incorporation with the Local Tax Office.

7-Register the original Deeds of Incorporation with the Spanish Companies House (Registro Mercantil)

You will receive your original deed with a certificate proving that the company is registered.

8-Get your permanent Company Tax Identification Number (C.I.F.)

9-Register the company with the Spanish Social Security (Tesoreria General de la Seguridad Social)

As you can see, establishing a limited company in Spain is not a piece of cake.

We have just mentioned the main procedures to give you a general idea of the process of starting a business in Spain. There are many issues and steps that we have not mentioned.

If you would like to establish your company in Spain, please contact us and we will give you free legal advice.

We are happy to announce that we won another appeal at the Provincial Appeal Court in Alicante for Fortuna Golf buyers of Promociones Eurohouse.

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

The legal grounds are that the bank which issued general bank guarantees has to guarantee the deposits paid by every buyer.

If you are one of those buyers, please contact us and we will study your case and will give you free legal advice.

Ley  57 1968. Case won at the Provincial Appeal Court no. 8 (Alicante) against Banco Popular Español S.A.

We have won a case against BANCO POPULAR ESPAÑOL S.A. for our clients, who purchased an off-plan property from the developer PROMOCIONES EUROHOUSE  2010 S.L. in Residencial Fortuna Golf, Murcia.

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

At the moment, there is a big confusion and legal controversy regarding the bank’s liability in the cases with regards to the developer PROMOCIONES EUROHOUSE  2010 S.L. at the Courts in Alicante (First Instance Courts and Provincial Appeal Court).

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.

Our case was based on Ley 57 1968. The bank which issued a general bank guarantee should cover the deposits paid for every client who purchased an off-plan property.

The bank BANCO POPULAR ESPAÑOL S.A. has to refund the deposit paid by our clients plus interests since they were paid to the developer’s bank account.

The Provincial Appeal Court has also decided that the bank has to pay for our clients’ legal fees for the case at the First Instance Court.

The appeal case we won at Provincial Appeal Court for Fortuna Golf buyers of Promociones Eurohouse, regarding Ley 57/68 is FINAL.
This Judgement will set precedent and help other buyers with recovering the deposits by suing the bank, which issued general bank guarantees.

If you are one of those buyers, please contact us and we will study your case and will give you free legal advice.

 

Ley  57 1968. Case won at the Provincial Appeal Court (Alicante) against Banco Popular Español S.A.

We have won a case against BANCO POPULAR ESPAÑOL S.A. for our clients, who purchased an off-plan property from the developer PROMOCIONES EUROHOUSE  2010 S.L. in Residencial Fortuna Golf, Murcia.

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

At the moment, there is a big confusion and legal controversy regarding the bank’s liability in the cases with regards to the developer PROMOCIONES EUROHOUSE  2010 S.L. at the Courts in Alicante (First Instance Courts and Provincial Appeal Court).

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.

Our case was based on Ley 57 1968. The bank which issued a general bank guarantee should cover the deposits paid for every client who purchased an off-plan property.

The bank BANCO POPULAR ESPAÑOL S.A. has to refund the deposit paid by our clients plus interests since they were paid to the developer’s bank account.

The Provincial Appeal Court has also decided that the bank has to pay for our clients’ legal fees for the case at the First Instance Court and for the case at the Provincial Appeal court.

Ley  57 1968. Case won at the Provincial Appeal Court (Alicante) against Banco Popular Español S.A.

We have won a case against BANCO POPULAR ESPAÑOL S.A. for our clients, who purchased an off-plan property from the developer PROMOCIONES EUROHOUSE  2010 S.L. in Residencial Fortuna Golf, Murcia.

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

At the moment, there is a big confusion and legal controversy regarding the bank’s liability in the cases with regards to the developer PROMOCIONES EUROHOUSE  2010 S.L. at the Courts in Alicante (First Instance Courts and Provincial Appeal Court).

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.

Our case was based on Ley 57 1968. The bank which issued a general bank guarantee should cover the deposits paid for every client who purchased an off-plan property.

The bank BANCO POPULAR ESPAÑOL S.A. has to refund the deposit paid by our clients plus interests since they were paid to the developer’s account.

The Provincial Appeal Court has also decided that the bank has to pay for our clients’ legal fees for the case at the First Instance Court and for the case at the Provincial Appeal court.

We would like to congratulate our clients for such good news.

Cc Lawyers offers free legal consultation if you need expert advice on any legal issue in Spain.

We will answer as many questions as you have. Every consultation is free until you decide to go on with our advice.

In our free legal consultation, we can advise you on many matters: selling or buying a property in Spain, assistance with a Spanish Will, a relative’s inheritance, a divorce, recovering a debt, or any type of litigation.

Cc Lawyers will guide you and give you expert legal advice on any matter that concerns you.

If you don’t speak Spanish and are not familiar with the Spanish legal system, please contact us for our free legal consultation.

You can send us your details through our contact form or just send us an email to info@spanish-lawyer.org

For those of you who don’t know, the clausula suelo is a minimum interest rate included in some Spanish Mortgages, which impedes the client to benefit from the Euribor fall under this minimum rate.

In May 2013, the Spanish Supreme Court decided that this clause had to be canceled if the client was not properly informed about the consequences of having a “clausula suelo”. Therefore, the amounts paid due to this clause had to be refunded to the client since the Judgment of 9th May 2013. This Judgment was not totally fair because it only ordered the bank to refund the client since May 2013 and not since the client started to pay this “clausula suelo”.

As we already posted, we are now waiting for a Judgment of the European Court regarding the retroactive effect of the refund. The Judgment is expected by mid-July 2016.

Nevertheless, the European Institutions, European Commission and the European Central Bank (ECB) have advised recently to the Spanish banks to calculate and be ready to refund all the amounts paid due to the “clausula suelo”. The reason why Spanish banks have been advised to calculate the total amount is the Judgment from the European court, which might decide that the order to return the amounts improperly paid due to the “clausula suelo” has retroactive effect. This means that the return will be calculated since the client signed the client started paying for this “clausula suelo” instead of since the Judgment from the Spanish Supreme Court of 9th May 2013.

If this European Court Judgment orders the retroactive effect, the refund has been calculated to be around 7.6 billion Euros. The Spanish Courts think that the retroactive effect will have a bad impact on the Spanish Economy and don’t agree with the European Institutions. We will have to wait and find out very soon.

For those who don’t know, the clausula suelo is a minimum interest rate included in some Spanish Mortgages, which impedes the client to benefit from the Euribor fall under this minimum rate.

In May 2013, the Spanish Supreme Court decided that this clause had to be canceled if the client was not properly informed about the consequences of having a “clausula suelo”. Therefore, the amounts paid due to this clause had to be refunded to the client since the Judgment of 9th May 2013. This Judgment was not totally fair because it only ordered the bank to refund the client since May 2013 and not since the client started to pay this “clausula suelo”.

As we already posted, we are now waiting for a Judgment of the European Court regarding the retroactive effect of the refund. The Judgment is expected by mid-July 2016.

Nevertheless, the European Institutions, European Commission and the European Central Bank (ECB) have advised recently to the Spanish banks to calculate and be ready to refund all the amounts paid due to the “clausula suelo”. The reason why Spanish banks have been advised to calculate the total amount is the Judgment from the European court, which might decide that the order to return the amounts improperly paid due to the “clausula suelo” has retroactive effect. This means that the return will be calculated since the client signed the client started paying for this “clausula suelo” instead of since the Judgment from the Spanish Supreme Court of 9th May 2013.

If this European Court Judgment orders the retroactive effect, the refund has been calculated to be around 7.6 billion Euros. The Spanish Courts thinks that the retroactive effect will have a bad impact to the Spanish Economy and don’t agree with the European Institutions. We will have to wait and find out very soon.

The Court costs or legal costs are the Lawyer fees, Procurador (court representative) fees and the fees of any expert who participated in the Court case.

The legal costs are regulated by each Provincial Lawyers Association (Colegio de Abogados).

Who has to pay the legal costs?

The client is always required to pay the costs, regardless of who has been sentenced to pay the legal costs.

Nevertheless, if the Judge ordered that the other party had to pay your legal costs, these legal costs can be claimed to the other party through Court.

If I win, do I have to pay legal costs?

Usually, the party losing the case is sentenced to pay his/her legal costs and the legal costs of the winning party.

However, the Judge can order that each party has to pay for his/her legal costs if:

  1. The winning party didn’t win completely. If the Judge decided in favour of the winning party only regarding some of the requests in the claim, and the Judgment was partially in your favour, the Judge might not sentence the losing party to pay for your legal costs.
  2. The Judge finds that the matter of the claim doesn’t have enough precedent in favour of any of the parties and decides that the matter in dispute needs to be clarified.

Therefore, even if you win a case in Spain, you might have to pay for your legal costs.

Normally, the losing party has to pay for legal costs, but this is not automatic and depends on the Judge’s decision.

You can visit the  European e-Justice Portal to get more information