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Our Blog

Explore our blog for insightful articles on many interesting and relevant topics
Costa Luz Lawyers > Our Blog (Page 3)

European Union Commission on the IRPH clause in Mortgage Loans

The European Commission, in its observations to the Court of Justice of the European Union (CJEU), has positioned itself in favour of people affected by the mortgage index, IRPH, which directly opposes the judgment of the Supreme Court on the IRPH index in Spanish mortgages. This index, known as the ‘Index of Reference of Mortgage Loans’, (IRPH), affected 1.3 million mortgages. In those mortgages the interest rate was linked to the IRPH and not to the Euribor. IRPH is calculated by taking into account the loan interest rates offered by all financial entities and has always been much higher than the...

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Banks must pay Stamp Duty Tax on Mortgage Loans

The Spanish Supreme Court has recently ruled that the person who must pay Stamp Duty tax due on the registering of the public deeds of mortgage loans is the lending entity and not the borrower. In a Court Sentence dated 16 October 2018, the Supreme Court modifies its previous Case Law and interpreting the consolidated text of the law on property transfer tax and stamp duty tax, concludes that the borrower is not the taxpayer of the latter tax in the deeds of mortgage-backed loans. But the entity that provides the corresponding loan. It considers that the transaction subject to registration is...

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Touristic housing to be controlled by Communities of owners

The communities of owners will be able to prohibit by a majority of three fifths the establishment of tourist apartments in their building, against the rule of unanimity which has been required until now. The Secretary of State for Tourism, Isabel Oliver, announced on Monday the modification of two key laws on housing to regulate this phenomenon. Oliver highlighted the intention to "separate short-term rentals and rentals for tourist use", and to giving communities of owners the power to decide on their properties and "what can be allowed". For this purpose, the urban lease law and the horizontal property law will be modified....

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On European Wills

On August 17 2015, a European Regulation on inheritance law came into force. This regulation, allows European citizens to choose for their inheritance to be regulated by either country of residence or country of nationality. Therefore if you are currently a Spanish resident, but you have a different nationality that will provide you with better conditions for your heirs, you can choose this by simply stating it in your will. This came into effect in 2015 along with the European Certificate of Succession (ECS). This document has been designed to make international probate procedures easier in Spain as it will be a...

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Q&A on Tourism Rentals in Spain

The rules that as owner you have to follow to rent your property to tourists in Spain are a complete hieroglyph today. What is the law that regulates tourist rental? Currently, there are 43 different Tourism regulations in the Spanish national territory. The City Councils can also add requirements from the competences they have in planning matters. Can the Community of Owners prohibit tourist rental? The Community of owners does not have the power to limit the owner's rights, among which is to rent the property. They can regulate and enforce the statutes that regulate the use of common elements of the...

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Refusal of property keys back by the Bank

What if the Bank refuses to accept my property keys back? Not the end of the story: Monitor and oppose if: (a) Your mortgage deeds have abusive clauses which can stop or void the repossession: anticipated maturity clause, lack of communication of the sale of the mortgage debt to a vulture fund, floor clause, IRPH… (b) The enforcement procedure is being according to Law (c) Value given to the property for auction is correct, mainly if Banks are respecting the minimums established by Law as a barrier for them not to bargain with mortgage debtor rights. In most cases, your pending debt is below the value...

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Starting a business in Spain? Choosing between Limited and Autónomo

There are different economic, legal or images sake reasons in order to choose between one or other form of trading. You need to choose the legal form that best suits your needs. Disclaimer: In the case of a self-employed, the liability is unlimited while limited liability companies´ liability is limited to the capital. Thus, when a limited company goes bankrupt, only respond with his possessions, and never will with the properties of their owners. Financial requirements: A limited requires a minimum capital of € 3006.00. Taxes: Self-employed individual can obtain directly the benefits of their business and be taxed in the...

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Is your property being repossessed?

Read the below legal tips  by CostaLuz Lawyers: • Any notification to the debtor must have been practised by the courts after investigation of different possibilities. It is not enough if the Court just tries the foreign address in Spain which was mentioned on the deeds. • Action taken cannot be based on an illegal or abusive clause (floor clause, early expiry clause, debtors’ interests’ clause…) • Law has imposed Bank a minimum value (50% of auction value of the property) for the event of repossession by them after an auction with no bidders. If your debt is below that minimum     ...

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Can Ryanair deny compensation?

European regulation EC 261/2004 establishes a series of automatic compensations in the event that a flight is cancelled. One of them is that users can claim economic compensation, an alternative transport and the refund of the ticket. Likewise, they may receive compensation for material and moral damages, as well as the right to receive assistance. In the case of Ryanair, when it comes to short and medium distance journeys, the compensation will vary between 250 Euros, if the journey is less than 1,500 kilometres or 400 Euros, in the case of flights between 1,500 and 3,000 kilometres. In case an alternative...

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The European Commission says the Supreme Court Sentence on IRPH violates Community legislation

The European Commission has recently issued a report on IRPH clauses in Spain, which leaves Spain’s Supreme Court in a compromising situation. The effects could be of similar proportions to the cancellation of the ground clauses of the mortgages, although we will still have to wait for the response of the Court of Justice of the European Union (CJEU) to a question submitted by a court in Barcelona. In November 2017, Spain’s Supreme Court ruled that mortgage contracts linked to the IRPH are not abusive because this index, being official, already offers guarantees of transparency. But now the legal section of...

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