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Collaborative platforms & tourist websites under tax control in Spain

On 24th May 2018, model 179 on "Quarterly informative declaration of the assignment of use of housing for tourist purposes"  was approved. It is another controversial information obligation which is now being reviewed by the Supreme Court. Despite the information obligation being quarterly, the Treasury agreed, exceptionally, that  incomes obtained in 2018 could be declared between the 1st and the 31st of January, 2019. Thereafter, the declaration will be made every quarter. So, this month will be crucial for  collaborative platforms which offer an intermediary service between owners and tourist tenants in Spain.  The Treasury is being very pro-active on this. The obligation is on...

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New rules in relation to tourist rentals in Spain come into force today

The new rules for tourist rentals imply a control power over tourist rentals by the Community of Owners The use of properties as a "tourist" lease can be prohibited by agreement of 3/5 parts of the totality of owners and shares in the community. The same majority will be required for the creation of additional fees or an increase in the share of the common expenses of particular units where said tourist rentals are carried out. These modifications cannot imply an increase of more than 20%. These agreements will not have retroactive effects and once adopted by the above mentioned quorum, must be...

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Have you done your homework before Brexit?

As a Spanish resident As uncertain as the situation is at present, it is wise to check and review some aspects of your life in Spain before Brexit is finally implemented (if that actually happens).  We would recommend checking your Spanish documents to see if they are all up to date. Padron registration Tax registration Social Security registration Car registration Health Services registration NIE number With regards to your Will, you can still enjoy the benefit that Brussels IV offered in terms of deciding that UK Law should govern your inheritance instead of your country of residence.  Once Brexit happens on 29 March...

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Penalty interest for delay in mortgage or loan payments

Do not pay delay/penalty interest more than 2% above the agreed interest rate of the loan or mortgage If the penalty interest for payment delay of your loan (personal or mortgage) is more than 2% above the agreed interest rate of your loan or mortgage, the judge must maintain the rest of the clauses of the contract and cancel the clause relating to delay/penalty interest.  Nothing can be charged to the consumer if the rate is more than 2% above the agreed loan rate. Why 2 percentage points? The Supreme Court in Spain has considered 2% as the maximum which will not imply...

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Spanish Timeshare industry being punished by the Supreme Court

The Timeshare industry is being heavily punished by the Spanish Supreme Court as, in most of the cases; contracts were drafted against formal requirements of the Law. The Supreme Court is condemning Timeshare companies to refund clients a proportional part of all payments made by them. Being the proportion based on the number of years that the timeshare has been used over a period of 50 years.  The Supreme Court is also condemning related financial institutions to refund amounts jointly and severally with the Timeshare companies. CostaLuz Lawyers have so far  helped clients in these timeshare developments:  Diamond Resorts, Club Primavera,...

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Possibility of judicial declaration of nullity of foreclosure proceedings

Is it possible to obtain a judicial declaration of nullity of foreclosure proceedings when the request for payment to the defendant (mortgagor) has not been made with all the guarantees required by law, according to the interpretation made by the Spanish Constitutional Court? When a foreclosure proceeding is initiated in Spain, the mortgage debtor has very limited possibilities for opposition.  Hence the importance for the debtor to analyze in detail if the mortgage procedure complies with all procedural requirements. If the nullity of the mortgage process is approved by the Court, the consequences are that everything that has been done is not...

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Spanish Government announces law changes to force banks to pay mortgage tax

The Spanish Government has just passed a Decree by which mortgage lenders, rather than borrowers, will from November 12th, pay the Stamp Duty tax charged for the opening of the mortgage. The decree also ensures banks cannot deduct this cost on their tax returns. With this legislative decision, the executive government has over-ruled the Supreme Court’s recent decision which made the consumer pay the fee. The government justifies the fast decision due to the fact that the Supreme Court has created a big confusion: In mid-October the Supreme Court changed over 20 years of Case Law by ruling that banks, not borrowers,...

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Are agreements between the Bank and Consumer on Floor Clauses valid?

Very recently, on 15 June 2018, the Supreme Court issued a new ruling on a case relating to mortgage deeds novation modifying the floor clause through an agreement between the client and the financial institution. This judgment declares the nullity of the Floor Clause and the novation carried out subsequently through the signing of the agreement proposed by the bank to the client. What does the case decide? The case raises, as a matter of substance, the application of transparency control to a mortgage loan that included the so-called floor clause and that was subsequently the object of modifying novation. As stated in...

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