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.