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News 2014

by Andrea Lechtape

Deadline: December 31, 2014: Property comes with the obligation to pay taxes

Actually, persons who acquire property in Spain should already have been informed at the time of purchase about all the obligations resulting from it. In this article, we are referring only to real estate acquired in Spain by foreign citizens, and which are not rented out.

Foreign owners who acquire a holiday property often assume that all obligations are met as long as they pay taxes and waste disposal fees to the municipality (Impuesto de bienes inmuebles IBI y basura).

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by Andrea Lechtape

Mortgage Clause in Spain, Minimum Interest Rates Invalid

The most recent judgment by the Supreme Court on the subject of MINIMUM INTEREST RATES in mortgage contracts could have advantages for many consumers.

Over the last ten to fifteen years, in their mortgage contracts concluded with private individuals, many banks in Spain have incorporated a clause that has created upper and lower limits for the mortgage interest rate.

This clause has become known as the "bottom clause" and has the effect that the borrowers involved cannot profit from the clear decrease of EURIBOR.

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by Andrea Lechtape

Attention: Labour Inspection

As the Labour Inspection Office has informed us, a monitoring campaign of a very special kind will soon be underway on the Canary Islands. The target will be companies employing people on a part-time basis.

Often the number of working hours specified in the employment contract does not coincide with the hours actually worked. In plain language, this means that some of the wages are paid illegally, thus cheating the social insurance system out of contributions.

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by Andrea Lechtape

The end of lump-sum taxation, known as MODULO in Spain?

Almost!!! The new tax reform being prepared now by the government for 2014 does not (yet) provide for the abolition of lump-sum taxation, but further restrictions are said to be coming.

For example, it is planned that only those taxpayers can file their tax return in that form who are billing only final consumers. This reform would affect mainly small trades whose customers include other trades or companies.

Gastronomy, retail and hairdressers would not be affected for the time being. There were already restrictions in 2013 for trades such as bricklayers and cabinet makers who bill more than 50,000 € a year and send less than half their invoices to final consumers. We will inform you about all further developments concerning this reform.