A RESIDENT IN SPAIN ASKS: COULD I BE EXEMPT FROM PAYING ANNUAL TAXES?

Numerous residents will remember that since they first bought their residence in Spain, they were advised to submit annual tax declarations. Most have dutifully paid these taxes, which were seemingly due for years. If you are one of the lucky few who had received correct advice, you will be aware that you do not in fact due to pay these duties. Those who have been paying resident tax should make a thorough investigation on the matter.

The general rule is that, pensioners, whose Spanish homes are their habitual and only abode, earn a pension not exceeding approximately twenty thousand euros a year and have no savings should be exempt. There are of course exclusions to this rule. One of these exceptions appears to be treating some pensioner’s unfairly. If your pension for example; does not exceed fifteen thousand a year but is obtained from two sources you will be liable to pay the annual resident tax.

I suggest that you do not use the above as a general rule as each person’s circumstances differ. For pensioners especially it is important that if you have not done so, that you should complete and submit one tax declaration to see if you are exempt. If this is the case, make sure you obtain a certificate from your tax office stating that you are a tax resident. Not doing so will complicate matters when either selling your property or on the death of a spouse. The regional government will retain funds on the sale of your property or charge a higher percentage of inheritance tax on the demise of a partner.

SPEEDING FINES

A couple from the UK, who hired a vehicle to visit a sick son in Spain, have incurred over 2.000 euros in speeding fines. The demand for the money was received at their UK address. The problem occurred when they lent the vehicle to a friend who did not respect the speed limits.

Please take note that if you consider loaning your vehicle to a third party, that you will be responsible for any fines or accidents perpetrated by the person you may have trusted to drive your vehicle. You will only be exempt from the responsibility of accidents if the person driving is mentioned on your insurance certificate.

British and non Spanish registered vehicles considered as abandoned, are being towed away

You will no longer be able to leave your British registered vehicle parked in a public place when you leave the country. Nonresident property owners are under the illusion that they can drive their British registered cars on visits to Spain. Unless you have a garage or private parking in a gated community, you are at risk of losing your vehicle. Contrary to the belief of property owners, numerous urbanization's do not necessarily have private parking. The police do not contact owners of foreign plated cars before they are confiscated. A vehicle will be considered as abandoned, after it has been stationed in the same place for longer than one month. If the vehicle is not been reclaimed within thirty days, it is likely to be crushed

Costa Advice Bureau would also like to bring to your attention the law relating to nonresident vehicles. THE LAW STATES THAT RESIDENT AND NONRESIDENT ALIKE WILL NO LONGER BE PERMITTED TO DRIVE A FOREIGN PLATED CAR IN SPAIN; But genuine holidaymakers ARE entitled to drive a non-Spanish vehicle. The police will be stopping vehicles to assure that the law is being adhered to. Property owners driving a foreign plated vehicle, could be fined and possibly have their car impounded.

Spain, Is Everyday Living Becoming More Expensive?

The above title tells of the type of issue which concerns the expatriate retired and employed community.

The governments, who are in need of topping up their reserves, are increasing costs on anything they can.  This includes the recent increase in the cost of our electricity supply. The order allowing the increase is dated the first of April.  Purchase taxes on second hand properties have also gone up, thus ensuring that the sale of such properties becomes ever more expensive. Many expatriates are concerned with the possibility of losing some health care facilities, 

The tax authorities are looking in-depth at both residents and nonresidents alike, who are not carrying out their obligation and presenting their annual tax declarations. Countless restaurants are increasing the prices on their menus. Petrol prices have been at their highest yet and IVA went up increasing everything we have bought; this includes the price of all our services.   

With the removal of subsidies from almost five hundred common prescription medicines, it may be time to look for alternatives. Talk to your doctor about using tee tree oil to alleviate mosquito and insect bites. A fantastic natural remedy for thousands of skin ailments including athlete’s foot and fungi types of skin complaints.

It is time to watch our pennies.  Start searching out the bargains.  It can be cheaper to travel long distances by coach instead of driving, at the same time taking the strain off the journey and allowing you to enjoy the vistas. Now may be the time to take a trip up the coast and take advantage of the many bargains available in the larger towns.  For those lucky enough to have their ‘sixty five card’ check on the internet, and find the free or specially priced entries into museums art galleries and theatres.

Call up the government controlled Paradors and see what they are offering.  Some of these hotels are located in beautiful castles or listed buildings.  Those who receive their pension in sterling have further advantages. An occasional trip to shop in Gibraltar, treating yourself to that British product you swore you had given up when you went native.  Use your credit card instead of cash if your earnings are in euros. This way you will get the best exchange rate.  Petrol and diesel is still a little cheaper and as you are there anyway.  The queues appear to be back to normal after the aftermath of the skirmishes brought on by royal visits and fishermen’s rights. 

Make sure that you are availing yourself of the reductions offered to residents on their annual rates (IBI) bills. Talk to your town hall and find out about free classes and anything else available as a ‘freebie’  If you are over sixty,  call into the ‘Gabinete Geriatrico’ and you will discover that there are numerous free health checks available to the over sixties.  Still have the old water heaters?  Pay to have your gas supply revised. It is surprising how much you can save due to the correction of leaky connectors, not to mention the dangers of these faulty fittings.

How long have you had a contract with the same mobile phone company?  Check your points and with these, either treat yourself to one of the free latest models now available, with almost everything you need; your emails, camera, internet browsing, and free messaging.  Talk to other service providers who offer you not only new phones but cheaper tariffs to get your business.  It may be wise to go to a shop to enquire what is on offer.  Check that you are being told the truth, no hidden charges etc.

Have a morning going to all your local banks and see if you can get a better deal. For example many banks offer ‘no charge’ accounts. That is if you either pay your self employed contribution via their branch or have your pension transferred to the same. Are there many expatriates living in your community?  Ask to have a communal satellite for all English language channels.

Pay a small sum to obtain tax advice.  You may be paying more than is due because you are used to having your tax returns mimicking anterior years. Are you told to provide pension certificates and also receipts for all types of expenditure during the previous years?

Pensioners, please remember that you are entitled to cheaper electricity consumption charges and telephone rental costs at literally a few euros. Scour through local newspapers for bargains

Today I had an anxious call from a family of holiday makers who found that their car was not where it was parked. They had parked with two wheels on the kerb. This is illegal. If it had not been a rental car, they may have escaped being towed away. They could not make themselves understood so called me. I located their vehicle. Took them to the location where the vehicle was impounded. Cost to them for the tow truck, sixty eight euro (luckily avoiding a fine)

On a lighter note, summer is here and you may consider showering on the beach. Don’t use your shampoo and soap, as you may find yourself in hot water!

Relocating to Spain. Contact the experts at: Costa Advice Bureau

Contact the Experts

CAB is the established English language advisory office located on the Costa del Sol. Our experienced bilingual team provides an extensive range of services in mainland Spain and the Canary Islands.

We are dedicated to supporting the expatriate communities who live, work, invest or are relocating to Spain and theCanary Islands, ensuring you and your family peace of mind. 

We pride ourselves on providing our clients with a high quality and personal service. This means taking time to listen.
We will work with you every step of the way to make sure that you achieve the results you desire. Our business is client orientated and we maintain strict confidentiality.

Spain is an emergent European state where regulations are continually changing. Our inimitable insight and many years of experience in dealing with complex procedures, matched with our invaluable assistance, will assure you of success when negotiating in a country whose legislation may be unfamiliar. Using our services will ensure that you avoid the multiple problems that are all too often experienced by our community. 

Our team have all the expertise necessary for completing the complicated paperwork required to conclude the many obligatory and diverse commitments when living in Spain.

We will provide you with impartial, independent and confidential advice and assistance. Our team is recognised for providing an effective, efficient and economic service. We will make sure that our negotiations will find solutions to all your legal, business, personal problems and issues.

Myra, the founder of the bureau, has an extraordinary ability as a mediator which has concluded in significant and successful results for our clients. She also provides up to date information in her monthly column published in anEnglish language newspaper.

Are you thinking of purchasing a property? You may also avail yourself of our knowledge and expertise in order to guide you through the complex process of the purchase or sale of a Spanish property. Our conveyance fees are cost effective. 

We also offer services to advise and assist you with investments or establishing a business venture. Please continue to browse the site where you will find a list of the many issues we can assist you with in order to facilitate a relaxed and comfortable stay in Spain.

SPAIN’S POLICE UNIONS ACTION, MAY MEAN AN END TO EVICTIONS

The general secretary of SUP (the police union in Spain) José Manuel Sánchez Fornet, has assured the forces that they will support any policeman, who refuses to take part in any evictions ordered by the courts for the banks. They are also offering to assist the officers with the expenses for any legal cases which may be brought against them for refusal to act out the order, whether or not they are members of the said union.

Any member of the police force, who is a conscientious objector, against the increasing number of ejections, only has to speak up, and he or she will be supported. The secretary added that he hopes that this extraordinary action by the union will assist in putting an end to scenes of despairing families being put out onto the streets.

José Manuel went on to say that though this has been a topic of discussion for a while now. He noted the statements coming out from the European Union that the law in Spain on evictions is flawed, had a strong influence in the final decision.

Obviously swayed by the bad press the government is being subjected to and with the two recent suicides of homeowners, who were about to be evicted, the government is also looking at amending the law so that banks can give vulnerable mortgage debtors options to stay in their homes.

Numerous of these evictions are occurring to retired couples who have paid off their own homes but stood as guarantee for their children. This was a common way for youngsters, to be eligible for a home loan.

ROSALINDA POWELL FOX. DAUGHTER OF THE RAJ AND SPAIN

A woman has not lived, unless she has been loved and hated, envied and talked about

Japanese proverb 

I have been lucky enough to have spent many hours talking, asking questions and passing many a warm afternoon in the shade of the flower scented patio, at the home of this great aristocratic and beautiful woman, who passed away at the enviable age of ninety six.

Rosalinda daughter of the Raj spent most of her youth in India where she married at the tender age of 16.   After given birth to her only child Jonny, she developed bovine tuberculosis. Diagnosed as incurable her husband lost interest in his ailing wife and with a pension of 30 pounds a month she rejoined her family in Britain.  Her mother and sisters concerned for her feeble health sent her to Switzerland to be treated by a family friend and well known doctor.

 Strapped to her bed with her small son by her side and a typewriter gently resting on her chest, she began to write her enchanting book later to be published under the title “The Grass and the Asphalt” Bored and jaded Rosalinda called her medic and posed the question about her life expectancy.  ‘Seven to eight years if you stay in bed’  ‘Bring me my clothes she ordered’ and in 1935 headed to warmer climates.  Spain and Portugal would be more beneficial for her delicate health.  With the intimidation of her mortality always present she began her mysterious adventures.

Whilst attending the German Olympics in 1936 she met the then Spanish military attaché in Berlin, Colonel Juan Luis Beigbeder who would later become her lover and subsequently minister for the exterior in the Government of Francisco Franco.  Her relationship with this interesting man, many years her senior was to have serious repercussions on Rosalinda’s life.  During World War II Franco suspected her of spying for the British.  Britain took the opposing view and she was refused entry into Gibraltar.  Undeniably she had a great influence on Col. Beigbeder, one of the motives for which Franco had Beigbeder put under house arrest in Ronda. Rumour has it that Churchill stated ‘the war might have taken a very different course where it not for Rosalinda’ Spain had courted the Axis powers during Franco’s rule. 

Rosalinda was also arrested in Morocco by the French when she alleged that she was an unwilling witness to the French army’s intention to invade the Spanish zone. It leaves little to the imagination as to why this robust voyager had driven miles to the French area on a road hardly fit for donkeys.

This most unusual and valiant lady was indeed a bizarre sight driving around Spain in a Rolls Royce. She also spent time in the famous cafes of Madrid frequented by members of Franco’s government and high society.    She travelled to Portugal when it became too dangerous for anyone implicated with the regime to stay in Spain. There she was known to have collaborated with the American intelligence services.

With the end of the war, Rosalinda headed to Guadarranque where she bought a property to await the release of her cherished Juan. Here he would live out the rest of his life enjoying the views across the bay to his much beloved Africa.  Their personal house was built and the interior refurbished with exquisite carved wood from their residence in Tetuan. It had been rather painful for me to have learnt that the present habitants of the property have removed some of these wooden panels.                     

On the shore of the bay of Gibraltar, this little haven comprised of several chozas (huts) where few locals resided. Rosalinda immediately ordered the building of brick houses, which to this day have the British bulldog above their entrances.  She also had a small wall erected to prevent the river flooding the village and planted many trees. This articulate personality planned and spoke about her plans for a book about her existence in this locality.   Unfortunately she was never to write the book and to this day the facts relating to her life and properties, in what is still a small hamlet are obscured by intrigue and mystery. But this is another story

NOTARY'S RESPONSE TO A RESIDENCY CERTIFICATE

My clients, who are residents, purchased a property in Andalucía. When drawing up the purchase contract (escritura de compraventa) in a notary, the clerk was at first not willing to inscribe in the document that they were residents in Spain. As far as he was concerned he had no proof of resident status. He made the point that the A4 size green document which has replaced the previous resident card, (and even though accompanied by passports) was not proof enough.

He did have a point. If they had been selling a property they would have been considered as nonresidents. This would result in the rule of ‘nonresident tax’ being applied.
Consequently; three percent of the total sale price would be legally withheld at source. The dues would then be forwarded to the tax authority.
The new document states, “La persona que a continuación se indica, ha solicitado y obtenido su inscripción en el Regisgtro Central de Extranjeros de la Dirección de la Policía y de la Guardia Civil, como residente comunitario en España” (The person indicated below, has sought and obtained registration in the Central Registry of Foreigners, of the address of the Police and of the Civil Guard; as a community resident in Spain) Translate and take this statement as you will, but there is no doubt, that there is conflicting and controversial recognition of resident status at present. For this reason it is important to take further action to authenticate your resident status.

PROTECT YOURSELF FROM THE INCREASE IN THEFT FROM VEHICLES AS THE CHRISTMAS PERIOD APPROACHES

In a recent article, I had advised about the ever increasing thefts from rental cars. This was specifically targeted at holidaymakers and second homeowners.

One cannot forget the hundreds of thousands of residents who, having made their home here, may feel less vulnerable in their Spanish plated vehicles. We must also make an effort to be extra vigilant, whilst going about our daily business.

Just as we can have become quite proficient at noticing the differences, between a local and a member of the expatriate community, so have the thieves. The old myth that northern Europeans are in the main wealthier, motivate these criminals to pick on us. 

Supermarket car parks are prime targets. Most do not have security cameras.

Some useful do’s and don’ts: 

1.    Remove all belongings from the interior of the car. This includes coats and jackets as they obviously have pockets.

2.    Empty bags and other articles, may be worthless to you, but could result in a broken window or lock.

3.    Do not presume your boot is safe. Most vehicles are hatchbacks with easy access to the boot via the back seats.

4.    Never, leave in your vehicle anything that YO, may consider worthless. Empty bags, camera or mobile phone cases are examples.

5.     Never lock your car and then put valuables in the boot whilst out. Do this at home and NEVER, in a car park. Thieves are particularly on the lookout for this sort of action. That briefcase may only obtain a few papers but offenders do not know that.

6.    It may be a bore, but, do not return to your vehicle to offload some of your purchases such as Christmas presents and then return to continue shopping.

7.    Ladies. Never leave your bag on the car seats until you are safely in the vehicle with doors looked until you move off (It is not wise do drive with locked doors in case of an accident. Someone may need access to you if you were incapacitated)

8.    Each time you open the car boot, you are exposing whatever you have in the inside. Leave anything you do not need for road safety at home.

9.    Take your belongings off trolleys whilst packing up your purchases.

10.  Do not be distracted by anyone for any reason. This may mean turning down an offer of help from someone.

11.  If you are feeling secure because you do not own a hatchback. Remember, it only takes seconds to pick the lock from a saloon car.

GOODBYE SPAIN. IS IT A WILLING DEPARTURE OR A SUBLIMINAL INDUCEMENT?

There are a variety of reasons why numerous members of the expatriate community, have decided to leave Spain, and return home. The exodus in the last few years has been gaining momentum and noticed at least by the non-Spanish community.

The town halls seem to be unaware of what could be the start of a mass exodus. Unfortunate homeowners with mortgages have not been able to sell their properties, at any price, are now feeling the pinch. Their monthly repayments are at an all-time high and all costs related to living in Spain is on the increase. Everything from electricity charges, cost of gas and the purchase of most essential products including foodstuff and medicine has multiplied. This in part is due to the increase in taxes on all products and the continual hike in petrol prices will do nothing to decrease costs. A cutback in the health care system is affecting everyone, including Spain’s immigrants, who were in the past treated for free.

The government who are continually talking about their austerity measures (this is in the main affecting the working classes and the poor) appear to have no clear plans and cannot show any conclusive evidence that their strategy is working. They are choosing to ignore their ineptitude and are basically spreading misinformation to the Spanish population, about the true extent of the deficit. The foreign press is probably the media who, are aware and have deduced the truth about Spain’s impending gloom.

Last year, all residents of Spain enjoyed a beautiful sunny and relatively warm winter. October of 2012 has shown us a cold front, heavy showers and flooding. Should this type of weather continue, concluding in the fact, that we lose the privilege of enjoying the pleasures of walking in the country or promenade, under a warm withers sun.. Many more families may decide to pack up and leave.

With all the doom and gloom on the economic front. It may be worth considering, that a thorough culling, of a population who cannot presently contribute to an ailing system may actually be a blessing to Spain’s powers. Just as Spanish families are being forced to emigrate, as they did in the lean fifties and sixties. Consider that the leaders of the present governing party may not be too disappointed, to say goodbye to some of its adopted Europeans

.www.askspain.co

WHY PROBATE, NEED NOT BE AN EXPENSIVE LENGTHY PROCESS

Lack of understanding, of the word ‘probate’ has meant (in certain cases) that heir’s, confronted with a British will, have accepted that the implementing of this procedure, will be an expensive and long drawn out process, enabling them to inherit a property or assets in Spain. The usual practice is to pay for the services of a legal representative here, who would also pay the fees of a lawyer in their country of origin. 

Probate simply means. ‘The validation of a will’ Looking at it in this simple way, you may begin to wonder why, taking a will to probate (as it is often described) is such an expensive process. T

he expatriate usual way of thinking, is conditioned into believing that Spain has complex laws, that one must employ a legal representative for the simplest of duties. Obtaining an electricity supply and telephone service. The completion and submission of your annual tax declarations or drawing up a will. These are only a few, of the services expatriates are willing to pay in excess for. 

Unless residents and non residents alike can afford to take these measures, we should begin to gain knowledge of the specifics. This will enable us to carry out numerous duties, for a substantially reduced fee.

SPAIN’S DEFICIT, INFLUENCES THE GOVERNMENTS DECISION TO INCREASE TAXES FOR RESIDENTS

Decree-Law 20/2011, dated 30 December 2011 

We are being advised, that these new emergency measures,  will only pertain to  2012 and 2013. Taxes are rarely lowered. Therefore we can only presume that, the new rate will not be abolished in the coming years.

The law is to include taxes on all income. Many residents will see an increase in payments in their annual tax declaration.

There are to be proportionate tax increases on wages. The percentage applied will be on top of the figures in use to date to calculate your taxes.

The new taxes will also apply to savings. The more you have the higher the taxes. The increase will be applied according to the figures below:

1.       

 2%  increase on the benefits on  savings of  up to 6.000 euro

2.       4%  increase on the benefits on savings of up to 24.000 euro’s

3.       6%   increase on the benefits on savings of over 24.000 euro’s

Is the Spanish government not aware that many expatriates may well choose to take their savings elsewhere?

For a review of your individual tax obligations, it would be wise to contact your tax advisor.

COSTA ADVICE BUREAU AND ASK SPAIN?

I have a new venture, which I am building up on the back of my Established business. Costa Advice Bureau.  Ask Spain? 

The website will soon be very visible on google (already appearing) 

This page will enable visitors to the site, which will include resident s, nonresidents holidaymakers and would be home purchasers to pose their questions relating to all topics relating to Spain. I personally will deal with all legal and bureaucratic questions

The page will also enable our expat businesses to use as a vehicle to promote their particular trades. This can be achieved simply, all you have to do is be on our list of experts.. (There is no charge at all and answer any questions relating to your field of expertise.

Interested? Please visit our website, fill in the contact form with details including an email to which we can forwarded prospective clients.

Thank you for taking the time to read this.

Kind regards,

Myra.

www.askspain.co

SPAIN IS KILLING THE GOOSE THAT LAYS THE GOLDEN EGG

 Does Spain want foreign investments? You would think  that especially with its huge deficits the answer would be yes. This is hard to believe when one looks at the huge hike in costs when purchasing a property or carrying out any transaction.

The costs for purchasing a property have risen. This included the rise of the seven percent transmission tax on second hand properties to eight percent for properties under the four hundred thousand price and above that the tax is increased a further percent to nine percent and so on.

Notary costs increase in line and of course, not to mention the recent increase in IVA taxes.

When buying a holiday home at a bargain price.  You receive notification, or not, you may just find the money is taken from your bank account for a  (complimentaria ) Putting it plainly. An unexpected extra tax bill, months or a year later. You had already declared the price you paid at the notary and paid the relevant taxes. Unbeknownst to you, the state decides that this tax should be paid on the value THEY have put on your purchase.

There may be no incentive to invest in Spain as there are not discounts available on the nonresident annual tax declarations, no discount on rates. Then there is the penalization when it comes to Inheritance tax.  There is no possibility of availing of any of the discounts here.

The icing on the cake must be, the new rule which have been in place for a while. Most people know that you need NIE number for all legal and other transactions in Spain. Anyone who is not a resident will have to renew this document themselves, paying the tax of course or pay for the services of a legal representative with the added cost of obtaining a power of attorney.

A LUCRATIVE BUSINESS FOR BANKS. LINKING INSURANCES TO LOANS

It is not a legal requisite. Yet it is a common practice for financial institutions to include a condition, obliging the borrower to take out insurance policies, when agreeing to loan you the funds for the purchase of a property. The types of insurances linked to the loan are usually; home, contents, health, invalidity, risk of unemployment and life insurances.

These contractual conditions which are imposed on the borrower, are not only unfair but are beneficial exclusively to the lender. This becomes evident in the case of claiming compensation. The loan institutions have underwritten the clauses in favour of the financier.

This is an abusive practice because it imposes procurement of unsolicited goods and services, therefore unfairly enriching the credit institutions as the insurances they offer are usually more expensive.

To justify these actions the banks use the wording of the ‘Circular 8/1990 of the Bank of Spain’ It can be said that the banks interpret the law as they see fit.

Having a life insurance with the same entity from which the loan was obtained can cause renewal problems for the heirs in case of death of the insured.

The only way these disgraceful practices can be halted is for us the public not to accept them. This is easier said than done, when one is anxious to obtain the mortgage loan.

AL FRESCO DINING. DOES SPAIN LACK SMOKE FREE AREAS?

Most tourists come to Spain for diverse reasons.  One of the essentials is that Spain’s renowned beautiful weather accompanies us during our visit.

 

For expatriate residents and visitors alike, it is customary to enjoy sitting outside on the numerous terraced areas, partaking of a meal or sipping a cool drink,  enjoying both the summer sun or winter warmth and the fresh sea air. The latter is no longer a fact.

There is now a blanket ban on smoking in restaurants and public places. Even so, many nonsmokers now find that they no longer have choices. It is impossible to avoid the tobacco smoke which drifts from the tables that surround them.

Restaurant and bar owners seem to be oblivious to the discomfort of many of their clients, including children and young babies. it may be a good idea to provide smoking areas with some type of transparent plastic partitions. If this does not become common practice, nonsmokers will no longer enjoy the Spanish tradition of open air dining.

DO YOU HAVE A SPANISH MORTGAGE ON YOUR HOME. IT IS HIGHLY LIKELY THAT THE BANK OWES YOU MONEY

You are likely to have a minimum interest rate clause in your Spanish mortgage contract? Are you aware that this could be costing you approximately €1,000 annually?

Throughout 2012 the Mercantile Court in Málaga has dictated 7 sentences ordering three banks to pay back considerable sums of money which they were illegally charging their clients through what is called “minimum interest rate clause” stipulated in their mortgage contracts.

The truth is that in this mortgage contracts it is established that at no point in time can the variable rate be inferior to a minimum rate fixed by the bank – this tends to be between 3 and 5%, whilst on the other hand the maximum limit is unrealistic – in the majority of cases this is between 7 and 15%.

The clause is detrimental  to the consumer when the Euribor descends below the minimum rate stipulated in the mortgage contract – particularly at this moment in time seeming as the Euribor has descended below 1%  - and the client has to continue paying as if it were at 3 or 5% because of the “minimum interest rate clause” imposed by the bank.  However, the maximum rate will never be reached meaning that the consumer will never benefit from it and the only beneficiary will only be the bank.

This banking practice trespasses on the very fundamental principles of contractual good faith and provokes a substantial and unjustified imbalance of contractual obligations, generating a loss in the economy of Spanish consumers at the same time.  In fact this same minimum interest rate clause has been mainly responsible for the progressive decline of the Euribor; (this being the main variable mortgage reference rate) not having led to a widespread drop in monthly payments.

Because of this, a group of professions lawyers experienced in this field, are offering you their service in demanding the annulment of the minimum interest rate clause and legally claiming back the difference between the amount which should have been paid if the clause had not existed in the first place, and the amount which has been paid up until now.

Their fees for handling this judicial procedure amounts to €1,000 plus IVA.

Ask Spain?

Costa Advice Bureau, is often inundated with calls and visits asking for advice and information. We cover all subjects and specialise in legal and law matters. We are often asked "how to" and so on. We do not charge our expatriates, either resident or nonresident and persons from the UK for advice or for responding to their questions. You can now save on your phone calls and receive the answers to your questions in a written format. Businesses in Spain may answers questions in their field of expertise enabling them of free promotions.

To avail of this free assistance, go directly to our Ask Spain website.http://askspain.co/

Thank you for taking the time to read this information.