Spain’s new Housing Act

Raymundo Larraín Nesbitt, November, 5. 2021

Lawyer Raymundo Larraín does a quick rundown on the major highlights this new bill introduces.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8th of November 2021

Introduction

Spain’s social-communist government is in the last legislative stages of enacting a new housing bill that will create ripples across the real estate industry. A bill that has not been exempt from controversy, ruffling the feathers of all those involved in the industry. No doubt, a new feat of our beloved communist government.

As I can only review a draft bill at this stage, albeit a final draft with few changes to be expected, please be aware alterations may be introduced.

The lofty goal of this law is to stop speculation on housing and reduce rental prices, making them more affordable for vulnerable collectives, such as despondent youngsters.

To reach a wider audience, I will shy away from esoterics, and go the good old-fashioned way of listing the major highlights in bullet points in no particular order.

Housing bill’s major highlights

  • Housing earmarked as public is banned from being sold to investment funds to avoid speculation of a good of first necessity.
  • Landlords who leave housing empty for over two years may be faced with higher municipal tax rates (of up to 150% surcharge on IBI tax). Some communist regional governments, such as the Balearics, have already made public they will levy the maximum penalty as soon as the law allows it. This is done to avoid speculation and free up the housing to those in need. The question arises with second residencies, such as those held by fellow expats.
  • Creates new mechanisms to draw out (sic) non-paying tenant evictions (particularly longer for legal persons acting as landlords). We actually need the opposite in Spain to foster a robust rental market, but whatever.
  • The new law will cap rental prices in earmarked areas where demand is stressed out with a view to curb rampant speculation.
  • The law forces property developers to reserve 30% of all developed land for social housing.
  • Tenants may apply for forced renewals on periods lasting from one to three years, forcing the hand of landlords.
  • A new concept is created, the ‘great’ landlord. Defined as someone (legal or physical person) who has more than ten properties or who has a built surface of 1.500 m2 on rental.
  • Great landlords are now forced to offer rentals at a price set by Authorities, under huge penalties.
  • Great landlords cannot update the rental price year-to-year (as currently) and must remain frozen for a period of up to 10 years
  • Physical landlords will rent at a fixed price determined by Authorities in areas under ‘rental duress’ (zonas tensionadas, in Spanish).
  • Sliding tax breaks will be introduced for landlords who lease properties to tenants within the age group of 18 to 35 y.o.
  • Reduction or suppression of 85% tax breaks for great landlords.
  • Creation of landlord tax breaks of 60% when improvements over the previous three years exceed a 6-month rental.

 

Potential negative repercussions of this new law

We already glossed over them in detail in previous articles: Government to introduce rental control in 2021 – 28th October 2020.

  • Sharp rise of off-the-books rental agreements
  • Sharp increase of rental prices (as offer will foreseeably retract following these changes)
  • End of buy-to-let boom as we know it
  • Introduction of legal insecurity on creating several undefined legal concepts 
  • Artificial creation of ‘guettos’ in large cities with long waiting lists
  • Rise of unemployment in a sector that was thriving (we are in a property boom!)
  • Restriction in offer. Sharp decrease in offer as landlords, on learning the government will fix at what price they can rent, will cease renting
  • Introduction of price market distortions. Huge price distortions with new and old rental prices, creating ‘privileged’ rentals
  • New problems: What happens to existing signed rentals?
  • New problems: What happens to signed contracts under this new law if it is found unconstitutional and is repealed (as is likely under a new government)?
  • On reserving 30% for social housing on all developments, how are you going to market (and sell) a luxury development?
  • Landlord tax break on long term tenancies reduced from 60% to 50%
  • Longer tenant-eviction procedures (effect pursued on purpose)
  • Sharp tax rise (IBI) for some landlords

 

Personal opinion

To sum up, lofty ideals with other people’s estates.

This law introduces a plethora of undefined legal concepts left for ulterior regulation to develop, listing but a few:

  • Areas under ‘rental duress’
  • Empty homes
  • Fixed sliding rental scale set by Authorities

 

A golden rule is never to create a legal text with undefined legal concepts that can be construed in any manner of ways. Needless to say, this creates legal insecurity for investors. This is not what investors want to hear. This is exactly the type of regulation they abhor and move away from.

Spain has huge potential to attract foreign investments, creating jobs and wealth on its wake.  We see this actively happening in Madrid and in Andalusia which are in a property boom. But clumsy laws such as this one, which openly favour market interventionism over a free market economy, in a move straight out of the playbook from Maduro’s Venezuela, are counterproductive. Spain is not a planned economy. Spain's economic potential is held back by laws such as this one. Investors will invest elsewhere. The Spanish government should stop demonizing foreign investors which are key to our economy.

This piece of legislation is the latest in a long string that further undermines the rights of property owners. Spain’s social-communist government is hell-bent on curtailing ownership rights as much as they can, and then some.

We don’t need a nanny state that dictates at what prices we can rent out or not. I was under the impression we lived in a free market economy in a democratic country, silly me.

Conclusion

This law (unfortunately) will likely fracture Spain further into regions which are investment-friendly and those which are not. This introduces pernicious market asymmetries which stifle competition.

Regional governments in Spain have devolved competencies in housing matters. It can be reasonably expected that regions under moderate right-wing control will implement this law lightly, or not at all, in sharp contrast to left-wing regions. This is a very important nuance and the reason why I write this law will directly contribute to fracture the country and introduce market asymmetries. 

Free-market regions, with ultra-low taxation which enshrine personal and business freedom as core civic values, such as Madrid and Andalusia, not only will ignore it, but vehemently fight it. Much to the disgust of our beloved social-communist government.

Whereas regions under left-wing control, such as the Balearics and Catalonia, can be expected to implement the new housing bill stringently, imposing immediately the 150% surcharge of IBI on empty houses.

Honest to God, the last thing Spain needs right now is to exacerbate social or regional polarization further, thank you very much.

There is also the matter of housing affordability. As I mentioned in the article's introduction, the aim of this new regulation is to make housing more affordable, particularly rentals, for vulnerable collectives such as young people on low and precarious McJobs. Whilst the government's goal is certainly commendable, no doubt, the way it is trying to achieve this may backfire, at least to my mind. As I have collated above as possible negative effects, it is foreseeable that landlords (offer) will remove from the market properties given the stringent conditions that are now government-imposed (i.e. Authorities set rental prices in areas under rental duress, no updating of rental price in 10 years, taxes on empty property, temporal expropriation of empty properties to be rented out, 30% of all new developments earmarked for social housing, etc). These effects are far-reaching and greatly affect landlords and developers who will likely pull out their units from the property market. When offer retracts but demand remains steady, following the laws of demand and supply, the price of an asset undergoes a rise. This is why I write that all these new changes enacted through this law - as commendable as they are - will likely impact on the market and translate into a general rise of all rental prices as there will be fewer properties on offer to chase after. This, in a context of a sharp rise in inflation, is very negative as it affects precisely the vulnerable collectives this law attempts to protect and assist.   

If there is a change in government in 2023 (highly likely) this new bill will be top on the list to be repealed. Key laws – ideally – should be consensuated, reconciling both political sides, and agreeing to a common text that can be upheld regardless on who wins on poll day. Otherwise, laws are short-lived and last what a 4-year legislature lasts (or even less), which is daft, unproductive and fosters widespread legal insecurity which deters foreign investments in Spain. You can expect this new Housing Bill to last a year. Smart money is risk-averse, the market rules need to be fair, clear and long-lasting.

Spain’s social-communist government unconcealed goal with this housing bill is to win the hearts and minds of a disenfranchised youth, mired by record-high levels of unemployment, the highest in any OECD country, wooing their vote in the upcoming election of early 2023. 

God willing, these changes will be for the better.

"I commend thee to Almighty God. He is the source of all good. Do the Will of God, which is the Way of Peace. Beware of bloodshed; de not trust in that, for spilled blood never sleeps. Strive to gain the hearts of thy subjects and watch over all of their interests, for thou art appointed by God and by me to look after their welfare. I have become as great as I am because I have won the hearts of men by gentleness and kindness. Never nourish ill feeling toward any man, for Death spares none. Be prudent in thyself. God will pardon the penitent, for He is gracious.– Saladin’s parting words to his son, al-Zahir.

Al-Nasir Salah al-Din Yusuf ibn Ayyub (1137 - 1193). From humble Kurdish origins, Saladin displayed from an early youth a series of unique traits which distinguished him from his peers, allowing him to quickly climb through the ranks and elevate him to commander of all Muslim armies (over 70,000 men). He became the first sultan of both Egypt and Syria, founding the Ayyubid dynasty. As a master chess player, he developed an uncanny ability, almost preternatural, to ‘read’ opposing Christian commanders’ minds to the point he could effortlessly anticipate their every move; much in line with Alexander’s prescient ability. He would regularly inflict huge losses to armies who vastly outnumbered him and – in theory – were better equipped (with superior European manufactured gear). As a master tactician, he would cleverly deploy his troops in such a manner to always take advantage of the surrounding terrain paying great care to logistics. His unmatched military prowess and gallantry would garner him great admiration, not only from within his own ranks, but from his enemies alike, most notably from Richard the Lionheart, King of England. Through his strategic campaigns, in a tour de force, he would eventually wrestle the control of Jerusalem from Crusaders, which had held onto it for over 88 years. When Saladin recaptured the city, there was no killing and no desecration of holy places, and Christian pilgrims were allowed free access to their places of worship (unlike the first Crusaders who took the city in 1099, murdering thousands, including women and children). He encouraged the establishment of institutes of higher learning in Cairo, Damascus, and Jerusalem. He also set up courts of law. Unlike other potentates, before and since, Saladin did not set himself above the law. But more importantly, he displayed a rare acumen that singled him out and made him human and relatable to all, even his foes. He showed great compassion and piety and would refrain from any unnecessary bloodshed. In Saladin’s possession at the time of his death were one piece of gold and forty pieces of silver. He had given away his huge wealth to his poor subjects, leaving nothing to pay for his funeral. Ironically, Saladin incarnated like no other man the best of chivalric qualities making him a true knight in all but name. Salah al-Din is likely the greatest Muslim commander of all time bar none.  

At Larrain Nesbitt Abogados we can assist you buying & selling property in Spain and deal with its taxation. Ask us.

Larraín Nesbitt Lawyers, small on fees, BIG on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyance, taxation, inheritance, residency and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

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Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Andalusia: now is the right time to buy (or sell) property!

Raymundo Larraín Nesbitt, October, 1. 2021

Lawyer Raymundo Larraín briefs us on Spain’s ongoing property bull market.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years' taxation & conveyancing experience at your service. We offer a wide range of over 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8th of October 2021

Plain and simple, now is the right time to buy (or sell) in Andalusia, period.

Feel free to skip the rest of my article below.

Introduction

2021 was poised to be one of the worst years on record in Spanish real estate sales. The virus’ financial aftermath proved devastating, nothing seemed to withstand its relentless wake.

And that’s when – least expected of all – politicians stepped in saving the day.

Andalusia’s regional government took the bull by its horns and approved in April of this year a taxpayer’s aggressive relief package to combat the adverse consequences brought about by Covid-19. These included, amongst many others, drastic tax cuts on buying property, both off-plan and resale.

We published a detailed article in SPI:  Andalusia lowers taxes including Property Transfer Tax and Stamp Duty in move that will boost the market – 28th April 2021

Little did we know at the time of publishing it that it would give way to one of the best performing years on real estate sales ever.

Six months later, we have witnessed one of the strongest bull markets to date in the Spanish real estate market. We have published several articles during this time to reflect this:

 

Spain’s National Bureau of Statistics (INE) published in August the hard figures on this bull market. INE reports a record-breaking 267,700 properties sold during the first 6 months of this year. We need to look back 13 years, all the way back to Spain’s property boom heyday, to see such strong sale figures.

You can see it in a graph here: House sales in Spain in 2021 (first six months of 2021)

In June ’21 alone, over 48,000 properties were sold, which is an 73.5% interannual increase. This is hands down the best performing June in real estate history. This confirms the unabated trend that we are witnessing the best sale figures in real estate in over 13 years. The property market has been nothing short of spectacular from March of this year.

There are several underlying factors that help to explain this spectacular property rebound (huge liquidity, new covid-induced consumer trends, drastic property tax cuts, ultra-low interest rates, sharp inflation spike, underperformance of bonds and other financial assets, etc) which we’ve collated in the above-mentioned articles. But to avoid beating about the bush, hands down it is the spectacular tax breaks now in place in Andalusia which have fostered the bull market we are in.

Even El Mundo (newspaper daily) reports how the buying frenzy is slashing the available stock of real estate in large cities in Spain.

Long story short, if you were ever expecting someone to tip you off when was the right time to buy real estate again in Andalusia, the time is now. If you’re thinking of buying (or selling) property in Andalusia, you should most certainly take advantage of the ultra-lenient tax breaks this regional government has on offer (for a limited time only):

  • Off Plan: 20% discount on Stamp Duty Tax
  • Resale: tax savings ranging from 12.5% to 30% (or more) on Property Transfer Tax, hinging on the sales price

 

Of particular interest are the tax cuts in resale property. The gist is that the higher the sales price, the more tax a buyer stands to save.

With numbers:

  • On a €500,000 sale price, the tax savings are 15%.
  • On a €3,000,000 sale price, the tax savings are 27%, and so forth.

 

In short, simply spectacular for high-end property. This has prompted a tidal wave of villa sales, the press reports 573 villas are selling a day in Spain! This is the highest figure on record since 2007, in the midst of Spain’s property boom.

As El Pais (newspaper daily) reports in August ’21, the capital appreciation of real estate in coastal areas has surged by 8.4% in 2021, as compiled by property surveyor TINSA (Spain’s largest surveyor). We hadn’t seen such capital appreciation figures since the early 2000’s.

Spanish financial newspaper The Economist reports today how some property hotspots in Spain have increased the asking price by over 20% year-on-year, particularly in coastal areas.

Undeniably, there is an upwards sales trend in Spain going on since March, but it is more prominent in coastal areas.

Bottom line, now is as good time as any to invest in real estate in Andalusia and take advantage of its time-gated tax breaks. In plain English, we’ve never had such low taxes on buying property in Andalusia – ever. ’Nuff said!

This is of particular interest to some fellow European investors, such as Dutch, who now face negative interest rates on their bank deposits (that is, you need to pay the bank to deposit your money)!  Ha ha ha. Excuse me, cheeky buggers!

It’s booming y’all! Are you gonna miss out?

 

At Larrain Nesbitt Abogados we can assist you buying & selling property in Spain and deal with its taxation. Ask us.

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyance, taxation, inheritance, residency and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

 

"We human beings become what we dream as children and during our youth.” Manuel Patarroyo

Manuel Elkin Patarroyo (1946, Colombia). Reading comics as a young boy on Mr. Louis Pasteur, Father of Immunology, would inspire him to heed his calling in life as an immunologist and save (millions) of lives. He is a Colombian Professor of Pathology and Immunology who developed, under precarious third-world conditions, the world’s first synthetic vaccine against a severe strain of malaria, a disease which kills 1.5 million people per year. The man was offered a fortune by leading US Pharmaceuticals for his patent (rumoured at over 1bn US Dollars). Anyone would have accepted such a generous offer; anyone but him. He altruistically donated his patent to Humankind, and as a result the prices charged for his vaccine are ultra-low, because anyone can mass produce it without having to pay royalties brutally reducing the costs of the development pipeline. It is estimated his work saves two million lives every year. Much like his childhood hero, M. Pasteur, he too would one day grow up to become a real-life hero.

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Article originally published in Spanish Property Insight: Andalusia’s hot property market means it’s a good time to buy (or sell) property!

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

 

 

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10 fun outdoor activities with kids on the Costa del Sol

Raymundo Larraín Nesbitt, August, 26. 2021

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
8th of September 2021

Please excuse me this month for not writing up a legal article, I’m still busy playing catch up after the long holiday break.

I was stunned to overhear a tourist conversation claiming there wasn’t much to do on the Costa del Sol with kids besides going to the beach. So, I took it upon myself to write a brief article on the matter.

The following list (collated in no particular order) is recommended for young children mainly on the basis of doing an outdoor activity, but also to nurture in them the love and need for wildlife preservation.

 

  1. Selwo Aventura

In Estepona, you will find this nature wild reserve. From ferocious lions to gentle elephants, and everything in between. Personally, I loved Margarita and Florian, a couple of hippopotamuses that loved showing off their teeth to tourists (someone needs a dentist appointment btw). One of the major highlights is the bird show, where you will have the opportunity to see several majestic birds. You will be taught valuable lessons such as not to poison the food chain as this kills birds and allows harmful critters to multiply unchecked becoming a health hazard. There is also a zipline which takes you across a huge lake which is great fun!

Info: Selwo Aventura

  1. Selwo Marina (Delfinarium)

In Benalmadena, you will find this marine park which is the home of orcs, dolphins, seals and several other marine creatures. The major highlight for me is the dolphin show and especially when the little ones get the opportunity to interact with dolphins (additional fees apply); it is well worth it.

Info: Selwo Marina

  1. Bioparc

In Fuengirola, you will find nestled in the middle of the city a self-contained nature reserve that is the home of hundreds of creatures. The animal enclosures are built to the last detail to carefully mimic the animal’s natural habitat. A far cry from Fuengirola’s 80’s zoo which I visited back in the day and made me cringe at how bad animals were mistreated. One of the major highlights is the Baobab tree replica which is the home of several species of Lemurs and Meerkats. You also can't miss out on the bird show, those parrots will steal your heart! Bioparc is hands down a personal favourite of mine and whenever time allows it, we pay it a visit with the family.

Info: Bioparc Fuengirola

  1. Mariposarium (Butterfly park)

Have you ever fancied being surrounded by huge beautiful butterflies? Well, look no further. In Benalmadena you will find this amazing place that harbours hundreds of different species. This will be the delight of the wee ones.

Info: Butterfly park

  1. Orchidarium

In Estepona, the garden city, you will find in the middle of the town this unique place that is home to hundreds of different types of orchids. The whole place resembles a Noah’s Ark devoted to orchid care. For a moment there, I felt a bit like Rod Taylor venturing in the classic 60’s H.G. Wells' The Time Machine movie (fortunately for us, no Morlocks). The major highlight for me was the huge waterfall at its heart, with its impressive fishpond, where you could close your eyes and feel for one waking moment being transported far away to some wild jungle in South America.

Info: Orchidarium

  1. Fort Naguelle’s

Who hasn’t imagined as a kid defending a besieged cowboy fort against a ferocious Indian attack? Well, you now get the chance to relive your childhood fantasies with your kids at Marbella’s Naguelles Fort, surrounded by a beautiful pine forest which is a natural preserve. It’s a real size replica of a U.S. West Fort that has it all (well, less the Indians). It’s free.

Info: Fuerte de Nagüeles

  1. Tivoli World

Benalmadena’s theme park is a classic of the Costa del Sol. Only its name brings back fond childhood memories. It’s the perfect place to spend a family day and have your kids ride all the attractions. I assure you that when you get back home for the evening, they are going to fall asleep fast and you’ll have a wonderful night’s sleep! Guaranteed or your money back!

Info: Tivoli World

  1. Aquamijas

In Mijas you will find arguably one of the best and most fun water parks I’ve visited. It’s the perfect place to take the young ones and explore with them all the wild water rides. I guarantee you will be exhausted by the day's end!

Info: Aquamijas

  1. Aventura Amazonia

Do you like Indiana Jone’s movies? Well, then this is the right place for you. In Marbella, you will be able to find this unique treetop zipline themed park for kids and for those of us who are still kids at heart. Only the dauntless may apply!

Info: Aventura Amazonia Marbella

  1. Wolf Park

Well, not strictly on the Costa del Sol granted, but close enough. In Antequera, only an hour’s drive away, you can find this unique place in all of Spain (and Europe) that offers you the unique opportunity to visit wolves. Have you ever fancied dancing amongst wolves (property exhibitions aside)? Well, now you get the chance! You will have a guided visit that will explain how wolves live and just how unfair humans have been to them, from fairy tales to hunting them down to nigh annihilation.

Info: Lobo park

 

"Me ha bastado pensar que la naturaleza pertenece a los niños para reanudar mi batalla encaminada a la conservación de la fauna.” — Félix Rodríguez de la Fuente

“I need only remind myself that Nature belongs to our children’s morrow, to give me strength in the battles to come in defence of wildlife preservation.”

 

Félix Samuel Rodríguez de la Fuente (1928 – 1980). Decades before the BBC's brilliant Planet Earth, narrated by Sir David Attenborough, there existed Félix. He was a Spanish precursor of what is now branded as ‘ecologist.’ The son of a reputed Notary, he was expected to dutifully fall in line and follow on the wake of his father’s footsteps. But following social conventionalisms were not his cup of tea. After graduating in medicine, he heeded his calling and would go on to become a naturalist and broadcaster defending what he thought mattered most - Nature and the endangered wildlife. He would become world-renowned for his much-acclaimed tv series El Hombre y la Tierra (1975 – 1980). His calm, collected demeanour and rugged commanding voice, coupled with powerful images of an unleashed Nature the likes viewers had never witnessed, bewitched Spaniards and other nationalities, for decades to come. His enduring legacy would be to imbue and imprint on younger generations his indelible passion and love in defence of Mother Nature. This constitutes all unto itself a wondrous feat, given how Félix managed single-handedly to change the whole country's mindset, which was not particularly renowned for its love and protection of wildlife at the time (seventies). He had a soft spot for wolves, which had been driven by Authorities to the brink of total annihilation. Decades on after his death, young generations of Spanish ecologists and eco-activists, who grew up watching his show, took the torch and would follow on the path laid by him, steadily bringing back wolf packs into a land which was once their rightful domain. He would tragically meet an untimely death in a plane crash aged only 52. No accolade can honour enough what this man achieved in benefit of us all. Almost four decades on after his tragic death, he is still mourned and is credited as the father of Spanish environmentalism. There isn’t a single town in Spain who does not pride itself in having a street or plaza named after him. So much for adhering to social conventionalisms, eh?

 

At Larrain Nesbitt Abogados we have over 18 years’ experience assisting clients buying & selling property in Spain and dealing with its taxation.

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, taxation, inheritance, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

 

Article also published at Spanish Property Insight: 10 fun outdoor activities with kids on the Costa del Sol

 

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely on websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. No wolves or Eloi were harmed on writing this article. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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The padron certificate explained

Raymundo Larraín Nesbitt, August, 3. 2021

Lawyer Raymundo Larrain briefly explains to us why and how to register with your town hall’s census, this is known as empadronamiento in Spanish.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

 

 

 

 

 

 

 

 

Inset photo: redacted padron certificate

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8th of August 2021

What is a certificado de empadronamiento?

A certificado de empadronamiento is a certificate that confirms you are registered at your local town hall census. It is often referred to in Spanish as Padrón. To register oneself is called empadronarse, in Spanish.

What’s its purpose?

It’s basically used to keep tabs on demographic data, which enables the state to allocate more efficiently public resources to different cities and towns based on its registered population. The more citizens registered in a census, the more resources and money the town is allocated by the government.

For example, this translates into a larger number of ambulances, firemen, police officers, street cleaners, etc.

Who needs a Padrón?

It is normally used on applying for Spanish residency, either individually or collectively. But it is also required on a number of other cases, as collated below.

Padrón uses

  • Vote
  • Apply/renew your residency permit
  • Apply for a public health insurance card
  • Entitles to free vaccination during the pandemic (Covid-19 jab, etc)
  • To apply for a mortgage loan or any kind of loan (required for tax reasons)
  • Get married
  • Enrol children in local schools
  • Buy/sell a car
  • To claim benefits
  • To attain subsidies

 

Documents required to enrol yourself

This changes from one town hall to the next, and also depending on your own personal circumstances, so I will not be listing any.

Conclusion

Much like a NIE number, a padron certificate is just one of those documents you will constantly need in Spain in your day-to-day life. You should apply for one as soon as possible to save yourself much aggravation.

You can hire our padron service for a very competitive fee: (Costa del Sol & Sotogrande only):

Empadronamiento

 

At Larrain Nesbitt Abogados we have over 18 years’ experience assisting clients buying & selling property in Spain and dealing with its taxation.

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, taxation, inheritance, and litigation. We will be very pleased to discuss your matter with you. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form to book an appointment.

Legal services available from Larraín Nesbitt Abogados:

 

Property related articles:

 

Article originally published at Spanish Property Insight: The Padron certificate explained

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely on websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

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Tenant eviction in Spain

Raymundo Larraín Nesbitt, June, 29. 2021

Lawyer Raymundo Larraín walks us through a tenant eviction procedure.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

 

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
8th of July 2021

It doesn’t escape anyone that the ongoing Covid-19 pandemic has had adverse effects on us all. The virus - and its unending family of mutant strains - has wreaked havoc in the world’s economy exacerbating tenant’s financial woes. As a result of the ongoing onslaught, many tenants are finding themselves in dire straits and struggle to continue paying their rental.

However, every story has two sides to it. On the other side, you also have landlords, often with young families, who are also struggling themselves to stay afloat, many have been laid off from work, many have fallen sick, a majority of them rely on the monthly rental to repay the mortgage loan.

The bottom line is that the virus - like death - is a great equalizer and affects us all, both landlords and tenants. As a result of this we have seen a huge jump in client enquiries over the last year demanding our litigation services. In today’s article we are going to briefly gloss over on what a tenant eviction procedure entails in Spain, keeping it simple, cutting out the esoterics.

The non-paying tenant problem

Non-paying tenants have become a real problem for landlords who rent out their Spanish property, a problem which seems to have been aggravated by repeated government-imposed lockdowns that have caused companies to close and have increased unemployment levels, already at a record high.

While the first thought of a distressed landlord is to lock his tenant out, or shut off the utilities, this is considered illegal by the Spanish Authorities and may lead the landlord to face criminal charges for coercion or harassment, or both. A landlord can be remanded into custody on doing this.

If trying to reach an amicable settlement with a tenant fails, the only feasible option left to a landlord is to start an eviction process through a Spanish Court of Justice.

The loss of rental income during this period of time can leave landlords in a bad financial shape, and things may turn uglier if the rental is partly being used to service a mortgage loan: if the monthly payments are not met in time, the lender could even repossess the property. A horror story that many a landlord may be faced with.

What to do?

The first sign of warning is triggered when your tenant falls in arrears one, or more months. With no delay, the first step should be to instruct a Spanish lawyer who will serve legal notice by recorded delivery giving your tenant a reasonable deadline to pay the rental due (two weeks suffices).

Trying to reach an amicable agreement

We are still in the early stages where we are trying to reach an amicable agreement, as starting an eviction process through a Spanish court of justice should only be really used as a last resort. Eviction processes take long, and the tenant can remain (and will probably do so) in the property until the eviction order is issued.

Landlords, therefore, should note that reaching an amicable agreement is in the best of their interest, even though this may involve, in many cases, relinquishing a few months’ rent. Not many landlords are happy with doing this, but it should be noted that the debt is rarely recovered (tenants usually declare themselves bankrupt after an eviction process), and the longer the tenant remains in the property, the bigger the financial loss is going to be and more chances of them trashing your property.

Some unscrupulous tenants even request from the landlord an amount of money in order to vacate the property, which in our opinion is outrageous and tantamount to blackmail.

If reaching an amicable agreement fails, there’s no other option other than to instigate an eviction procedure through the courts.

Can’t I just lock them out or shut-off the utilities and force them out this way?

No. As written previously, your tenant can report you to the police and criminal charges will be filed against you with very serious consequences that may even land you in a Spanish jail.

This is not a recommended option.

The eviction process

If you have failed to reach an amicable settlement, you will have to hire a lawyer and initiate what is known as a ‘juicio de desahucio’, or simply put, an eviction process. The lawyer will have to wait in some cases a few months of unpaid rental before being able to file a lawsuit.

An eviction process requires both a solicitor and the assistance of a procurador (court agent), who acts as a conveyor belt between the lawyer in charge of the matter and the law court. On litigation matters it is compulsory to employ the services of a procurador. A lawyer will typically charge you a minimum of €1,500 in legal fees, plus a further €500  in procurador fees. Other costs involved are a locksmith to change the locks (circa 200 euros).

The lawsuit is filed by your lawyer in a court where your property is located.

The Debt

The priority of a landlord should be foremost to recover possession of the property and vacate the tenant, not to recover the arrears.

A landlord can withhold the compulsory one-month deposit on long term lets, but may additionally ask for other (additional) guarantees on top.

How can I rent out my property safely?

The widespread fear of landlords not being able to vacate swiftly their defaulting tenants is justified. This helps to explain why there is a huge pool of empty properties in Spain which would be let if only the laws were addressed by those who wield power. For the good of the rental market, and a disenfranchised youth, swift tenant eviction laws should be enacted and enforced by our Authorities. This would immediately unclog supply, releasing millions of properties into the open market, bringing down prices. The overprotectionism of (non-paying) tenants by our lawmakers causes tensions on supply as landlords remain fearful to rent driving prices up which further exacerbates and compounds the problem.

The rental sluggishness in Spain can largely be pinned down to landlords being afraid of renting out properties given how biased historically (tenancy) laws are in favour of (non-paying) tenants. This is the crux of the problem – fix it and you are halfway there to pave the way to a robust rental market. But this requires a kind of long-term commitment and backbone our politicians’ lack.

I’ll keep on dreaming.

In the meantime, the onus falls on landlords to avoid non-payment issues. That is why it is most advisable that on renting out property in Spain, landlords should put in motion a series of measures to screen prospective tenants and weed off unsuitable candidates pre-empting non-paying tenants. More on this in our article: Letting in Spain: The Safe Way – 10th of October 2012

Court ruling

Following the hearing, a judge will set a date for the tenant's eviction.

Eviction & lock change

Depending on whether the tenant remains inside, the bailiffs may need to request the support of armed police who will forcefully remove from the property any tenant that still remains inside.

The locksmith, who will have been patiently waiting all this time, will now proceed to change the locks and hand the keys over to the landlord, or his appointed representative.

This puts an end to many a landlord’s nightmare.

How long does an eviction procedure take from start to finish?

In Malaga, it’s taking 3 to 6 months.

See what our clients have to say about our tenant-eviction service:

We have collated our most recent testimonials on our litigation tenant-eviction service:

"Larraín Nesbitt Abogados has been extremely helpful I do not know what I could have done without Raymond and his team. They have been my continued support throughout this process and I have learnt so much from Raymond with the laws and regulation in Spain. Unfortunately, I was challenged with a very awkward, sneaky tenant who was in fact an estate agent, so be aware and do not even trust so called professionals living in your property in Spain. Raymond communications has been nothing but outstanding, he has always been there when I needed him, replies instantly and explain in terms that we can understand with no legal jargon. The tenant eviction was successful and although it was challenging at times it especially with the Covid situation. Raymond and his team have been an immense support. I could not recommend this firm enough, and to not only help with a non-paying tenant but for all other legal requirements even if it's just for information they are knowledgeable and they say it how it is. Thank you Raymond and the team! FA"

FA, England, United Kingdom. April 2021

"I have been faced with a difficult problem to solve concerning eviction of a tenant’s partner for non-payment of rent for over a year. It has been exacerbated by my not being able to visit Spain and have face-to-face meetings, nor to take care of my business for myself. I greatly appreciate the work which you have done for me in this matter, including introduction to a suitable representative to have a Power of Attorney in the matter. While it has been a long drawn out and expensive process, I much appreciate your clear advice and guidance with respect to the law in Spain, and in the successful conclusion of a court case and sentence for eviction which has now been completed. Thank you for your work for me. I look forward to continuing to using your services whenever I need them again."

Kelso Riddell, Scotland, United Kingdom. May 2021

I’m very happy with Lorrain Nesbitt Lawyers. I’ve worked with a few different lawyers in the south of Spain and Raymundo and his team outshone all with their ability to carve a path through the often obscure and slow mechanics of the legal system. A complex and protracted tenant eviction was resolved in a couple of months once Raymundo took on the case. An outstanding victory. Well done.

RD, England, United Kingdom. June 2021 

Do you have a tenant you need to evict from your property?

According to statistics, landlords take an average of 7 months to start an eviction process. Don’t wait any longer. Act now, call us! 

Please note this service is only available in Malaga region (Costa del Sol).

 

Imagine no possessions, I wonder if you can.” – John Lennon

John Winston Lennon (1940 – 1980).  Was an English singer, songwriter, musician, and peace activist who achieved worldwide fame as the founder, co-lead vocalist, and rhythm guitarist of the Beatles. His songwriting partnership with Paul McCartney remains the most successful in music history. As a dreamer, he imagined a better world, where we’d be as one.

 

Larraín Nesbitt Abogados, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in litigation, conveyancing, residency, inheritance, and taxation. You can contact us by e-mail at info@larrainnesbitt.com, by completing our contact form, or by telephone on (+34) 952 19 22 88.

Litigation services available from LNA

 

Litigation related articles

 

Article also published at Spanish Property Insight: Tenant eviction in Spain

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

 

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Spanish Income & Wealth tax reminder

Raymundo Larraín Nesbitt, June, 2. 2021

Lawyer Raymundo Larraín gives us a gentle reminder on the tax obligations that residents in Spain must face (and in some cases, even non-residents).

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
8th of June 2021

I have written this short article as a gentle reminder for all taxpayers resident in Spain.

 

1. IRPF or personal income tax

 

Tax residents need to file income tax (IRPF, in Spanish) before the end of this month on their worldwide income & assets.

You are deemed tax resident in Spain if you meet one, or more, of the following points:

  • You spend more than 183 days in a calendar year in Spanish territory.
  • Your centre of financial interests is located in Spain.
  • Your spouse and/or underage children live in Spain.

 

If you meet any of the above criteria, you should be filing taxes in Spain.

Scores of expatriates have filed for Spanish residency over the last two years, and now need to meet their newly-acquired tax obligations derived from their new tax status.

Deadline to file this tax is end of June 2021.

 

2. Wealth tax

 

In addition to the above tax obligation, affluent residents may need to file as well for wealth tax in Spain. As there is devolved competencies on this matter, I won’t go into details as each region is empowered to enact their own laws on this – please seek tax advice from us if it affects you.

Additionally, even if you are non-resident in Spain, but happen to hold a sizeable estate in Spain, you must file wealth tax in Spain.

In other words, and for the avoidance of doubt, wealth tax is paid by both residents and non-residents alike. The difference are the tax allowances at play.

The deadline to submit this tax is also by the end of June 2021.

 

“The income tax has made liars out of more Americans than golf.” Will Rogers

William Penn Adair Rogers (1879 – 1935). Was an American stage and film actor, vaudeville performer, entertainer, cowboy, humorist, newspaper columnist, and social commentator from Oklahoma. He was a Cherokee citizen born in the Cherokee Nation, Indian Territory.

Larraín Nesbitt Abogados, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, residency, inheritance, taxation, and litigation. You can contact us by e-mail at info@larrainnesbitt.com, by completing our contact form, or by telephone on (+34) 952 19 22 88.

Taxation services available from LNA

 

Related tax articles

 

Article originally published at Spanish Property Insight: Spanish Income & Wealth tax reminder

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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How to stay in Spain over 90 days – Residency visa overview

Raymundo Larraín Nesbitt, May, 22. 2021

Solicitor Raymond Nesbitt gives us a sweeping overview on how to legally bypass the pesky 90/180-day rule that now affects all UK nationals post-Brexit.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists has a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
21st of May 2021

After 47 years, the United Kingdom will no longer be a Member State of the Union. The United Kingdom officially left the Union on the 31st January 2020, after both Westminster and the European Parliament ratified the Withdrawal Agreement.

As most UK nationals are already aware by now, you may not spend more than 90 consecutive days in Spain post-Brexit. This pesky limitation is known as the 90/180-day rule. It should be noted that, within a calendar year, you may stay up to 90 days within every rolling six-month period. In plain English, you may remain in two separate stays of up to 90 days each within every calendar year (without visa). A visa is only required when you want to spend over 90 consecutive days in Spain.

Over the course of the previous five months, we have painstakingly published detailed in-depth articles that explained the different legal ways to circumvent the 90/180-day rule. In today’s article we are going to gloss over the four main legal options. Please be advised the point of this article is not to go into every nook and cranny, albeit to skim over the surface light-heartedly and collate all the different legal options open to UK nationals, acting as a repository. If a reader wants to delve in deeper, we advise you follow the links supplied below (just click on them), or simply contact us – one of our friendly staff will be delighted to have a chat with you.

For full disclosure, we should point out there are other visas you can apply for, besides the listed four, but because the majority of our clients never demand them, we have purposely chosen to exclude them i.e. student visa, work visa, etc.

The four listed visas below allow its successful applicants, and dependants, to remain in Spain for more than 90 consecutive days within a calendar year; moreover, you may stay all year round if it pleases you. As an additional advantage, it gives its visa holders unfettered access to the Schengen Area (26 European countries). Basically, you will be treated on equal footing to a Spanish national on entering & exiting the country without all the pesky border & customs hassle that aggravates us so.

Regarding taxation, none of them automatically make you tax resident in Spain on attainment. However, if you spend over 183 days/year in Spain you will be deemed tax resident. On applying for a visa renewal, you will have to provide proof you are living in Spain long term, which may trigger tax residency.

All the below-listed visas have in common the following requirements:

  1. Non-EU national.
  2. Hire private health insurance.
  3. Clean criminal record (previous 5 years)
  4. Be self-supporting (you will not claim benefits)
  5. Not be already in Spain illegally at the time of making the application.

1. Golden Visa Investor visa

The investor visa is thought for affluent applicants. It is popularly known as a ‘Golden Visa’. It’s a blue-ribbon visa that basically rolls out the red rug for its privileged holders that neatly cuts through all the red tape. Its purpose is to foster foreign investments in Spain. Whilst there are many different ways to attain a GV, the most popular (and least expensive) is by investing in Spanish real estate. This requires investing €500,000 in property. We should point out that it applies retrospectively; meaning that any UK national (or any other non-EU) that bought a property in Spain for over 500k on or after the 28th of September 2013 may qualify. Unlike the other three visas listed below, renewals are not subject to proving you live in Spain all year round. They are based on keeping the investment. This ability to override the 90/180-day rule and not being ‘forced’ to live in Spain make it one-of-a-kind and explains why it is so coveted.

Suitable for:

  • Affluent property buyers
  • Investors, developers
  • High-flyers

 

Further reading:

Investor Guide to Spain’s Golden Visa Law – 8th November 2013
Spanish Golden Visa for British investors after Brexit
Spanish Golden Visa for British, it’s retroactive!

2. Marriage visa – EU Family regroupment

It’s intended for families or couples that have been separated, in and out of the EU. It seeks to reunite them in an expedited manner within the EU. So, although this type of visa is popularly dubbed as ‘marriage visa,’ it would be rather more appropriate to refer to it as ‘family visa’, as its scope goes well beyond a married couple. It ought to be understood in broader terms, as in family reunion. As its own name implies, couples must be married (including same-sex partners).

Suitable for:

  • Separated family members that wish to reunite within the EU
  • Married couples

 

Further reading:  EU-family regrouping (marriage visa)

3. Business visa – Lucrative Visa

As its own name implies, this permit allows the applicant to work in Spain as you will be self-employed. This residency applies to someone who is looking to set up his own business in Spain. Typically, you will be acting as director or company administrator. Needless to say, one of the key requirements is that you will have enough means to be self-supporting both for yourself and your family for one year. The catch, besides a cast-iron motivation, is that you need in the ballpark of €80,000 to €100,000 in savings to open & run a business.

Suitable for:

  • Applicants (families) wishing to set up and run a business in Spain
  • Self-employed
  • Entrepreneurs

 

Further reading:  Lucrative residency permit (business visa)

4. Pensioner visa – Non-lucrative visa

As its own name implies, this visa allows the applicant to live, but not to work, in Spain. The applicant will be expected to be self-supporting and will be required to prove he or she has enough savings for at least two years. This visa is ideal for retirees who wish to spend extended periods of time in Spain – without working – enjoying the finer things in life. However, it should be noted that other applicants, who are not of pensioner age, are also welcome to apply. This visa is also a good option for those who want to test the waters and are considering living in Spain long term. The catch is that you need to prove you have an income of at least €27,000/year.

Suitable for:

  • Pensioners
  • Would-be buyers, long-term tenants
  • Bon vivants

 

Further reading: The Spanish Non-Lucrative Visa Explained

 

 

I refuse to join any club that would have me as a member.” – Groucho Marx

Julius HenryGrouchoMarx (1890 – 1977).  Was born to Jewish immigrants who fled from the terrors of Europe (Germany and France) and would be welcomed with open arms by a young US, terre d’accueil. He was an American comedian, actor, writer, stage, film, radio, and television star. He is generally considered to have been a master of quick wit and one of America’s greatest comedians. Along with his five siblings, they shot 13 movies. They are commonly referred to as the Marx Brothers (Chico – Leonard, Harpo – Adolph, Groucho – Julius, Gummo – Milton, and Zeppo – Herbert).

LNA has a 100% track record attaining Spanish residency

 

Larraín Nesbitt Lawyers, small on fees, big on service.

At Larrain Nesbitt Abogados, we have assisted hundreds of EU and non-EU nationals to successfully attain a Spanish residency permit.

Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most. Your family’s success is only one call away: (+34) 952 19 22 88.

Residency services available from LNA

 

Related visa articles

 

Article originally published at Spanish Property Insight: How to spend over 90 days in Spain – Residency visa overview

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. No delusional separatist politician was harmed on writing this article. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Non-Lucrative Visa Explained

Raymundo Larraín Nesbitt, April, 29. 2021

Solicitor Raymond Nesbitt explains to us one of four legal ways to bypass the pesky 90/180-day rule that now affects all UK nationals post-Brexit.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
8th of May 2021

As its own name implies, this visa allows the applicant to live, but not to work, in Spain. The applicant will be expected to be self-supporting and will be required to prove he or she has enough savings for at least two years. This visa is ideal for retirees who wish to spend extended periods of time in Spain – without working – enjoying the finer things in life. But other applicants, who are not of pensioner age, are also welcome to apply i.e. students. This visa is also a good option for those who want to test the waters and are considering living in Spain long term.

The non-lucrative residency permit allows you to stay in Spain for a period of 1 or 2 years (as it is a temporary residency authorization), plus renewals. Initially, for one year and then on two renewals of two years each. At the time of applying for a third one, you may apply for long-term residency in Spain. In case you apply for long-term residency, you should renew it every 5 years.

As it has a non-profit nature, I stress again it does not allow you to engage in any professional activity or employment. You are required to be self-supporting, relying on your own means to live. If you are able to prove that you have enough funds to this end, and that your stay in the country won’t induce government aid, you will qualify for this visa.

Attaining Spanish residency indirectly implies you will eventually become a Spanish tax resident. Please note this visa service is only open to non-EU residents. Once you attain it, you also have the advantage of moving unfettered through the Schengen Area (access to 26 countries), besides Spain.

Requirements

  • Not be already in Spain illegally.
  • Not be banned from entering Spain.
  • Clean criminal record (previous 5 years).
  • You must have your own health or medical insurance, with full coverage in Spain (must be under 75 y.o. to hire one).
  • At least €27,000 annually for the main applicant. For each dependant a further €7,000.
  • You must not suffer from any of the diseases that can have serious public health repercussions.

 

Frequently asked questions

 

  1. Will my family be included in this visa?

Yes, as dependents.

  1. How long does this work visa last?

One or two years, then on renewals. After you have completed five years you may apply for a permanent residency card.

  1. How much money do I need to invest?

Nil, this visa does not have attached any investment requirements in Spain unlike other visas.

  1. Do I need to hire private health insurance?

Yes, this is a core requirement.

  1. Do I need a medical certificate?

Yes. You will need to provide a certificate from your GP with a specific wording we will provide you with, don’t worry.

  1. Do I need to live in Spain all year round?

No, not at all. This visa allows you to stay in Spain all year round, yes, on bypassing the pesky 90/180-day rule. But you are not ‘forced’ to remain in the country for any period of time, it’s up to you really. The bottom line is that you are free to come and go as you please from Spain.

  1. How much savings do I need?

At least 27k/year. The ability to categorically prove you are self-supporting is a core requirement.

  1. Can I study in Spain with this visa?

Yes, you may. Because studying is classified as a non-lucrative activity. However, we have specific study visas. You may also apply for internships in companies.

  1. Do I need to prove my source of income?

Yes. You will be asked to supply copies of your home countries bank statements over the last 12 months to verify your source of income. In a way, Immigration Authorities are monitoring where exactly you derive your income over an extended period of time. Their goal is to verify you are indeed self-supporting and will not claim benefits when in Spain to make ends meet.

  1. How long does a non-lucrative visa take to arrange?

On average, 3 to 4 months through us.

 

LNA offers the following visa service for non-EU nationals: Non-lucrative visa

 

LNA has a 100% track record attaining Spanish residency

Larraín Nesbitt Lawyers, small on fees, big on service.

At Larrain Nesbitt Abogados, we have assisted hundreds of EU and non-EU nationals to successfully attain a Spanish residency permit.

Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most. Your family’s success is only one call away: (+34) 952 19 22 88.

Residency services available from LNA

 

Related visa articles

 

Article also published at Spanish Property Insight: The Spanish Non-Lucrative Visa Explained

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

... Read more

Lucrative visa explained (business visa)

Raymundo Larraín Nesbitt, April, 1. 2021

Lawyer Raymundo Larrain explains to us one of four ways to legally bypass the pesky 90/180-day rule that now affects all UK nationals post-Brexit.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
8th of April 2021

As its own name implies, this permit allows the applicant to work in Spain as you will be self-employed. This residency applies to someone who is looking to set up his own business in Spain. Typically, you will be acting as director or company administrator. Needless to say, one of the key requirements is that you will have enough means to be self-supporting both for yourself and your family for one year.

Outlining and submitting a sound business plan is required by the Spanish Authorities. You will be required to work in the business plan which is submitted. You can either set up a new business or else take over an existing business. Renewals of this type of permit are guaranteed so long as the business is making a profit and money is not owed to either the Social Security or the Spanish Tax Office.

As stressed, devising a professional business plan is paramount to the success of this application; LNA can assist you both in devising one, to meet their stringent expectations, as well as attaining the residency permit itself.

This residency permit allows the investor’s family to live, and study in Spain.

Frequently asked questions

 

  1. Will my family be included in this visa?

Yes, your spouse and underaged children are regarded as dependants and will be included in the visa.

  1. How long does this work visa last for?

Initially one year, then on two-year renewals. After you have completed five years you may apply for a permanent residency card.

  1. How much money do I need to invest?

The figure varies, depending on the business, but we advise a minimum of between €80,000 to €100,000.

  1. Do I need to hire private health insurance?

No, unless you want to. When you work in Spain, you must be enrolled in Social Security which follows a monthly pay-in scheme. This already covers all your medical needs, both for yourself and your family.

  1. Do I need to live in Spain all year round?

If you want to be eligible for renewals, you need to spend more than six months within a calendar year in Spain (which automatically makes you tax resident).

  1. Is a business plan required?

Yes, we would take care of that. We work with registered economists who would draft you a professional plan and submit it to Spanish Immigration Authorities for approval.

  1. What type of business are we talking of?

There are no restrictions (other than your own qualifications to run a business). Most clients choose a business in line with their expertise that does not demand a formal qualification such as a boutique hotel, a bed&breakfast, a restaurant, retail outlets, import-export business, etc. You can also take over a going concern (existing business).

  1. How long does a work visa take to arrange?

On average, 3 to 4 months.

 

LNA offers the following residency service for non-EU nationals: Lucrative visa (self-employed)

LNA has a 100% track record attaining Spanish residency

Larraín Nesbitt Lawyers, small on fees, big on service.

At Larrain Nesbitt Abogados, we have assisted hundreds of EU and non-EU nationals to successfully attain a Spanish residency permit.

Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most. Your family’s success is only one call away: (+34) 952 19 22 88.

Residency services available from LNA

 

Related residency articles

 

Article originally published at Spanish Property Insight: Lucrative residency permit

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

 

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EU-Family Regrouping (marriage visa)

Raymundo Larraín Nesbitt, March, 1. 2021

Lawyer Raymundo Larrain explains to us one of four ways to legally bypass the pesky 90/180-day rule that now affects all UK nationals post-Brexit.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 18 years’ taxation & conveyancing experience at your service. We offer a wide range of 50 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2021. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
1st of March 2021

 

The 90-day rule

Post-Brexit, all UK nationals are subject to the 90/180 rule, both in Spain and in the Union. Basically, this means you cannot stay in Spain (or the Union) for more than 90 days within every rolling 6-month period. This has become a real nuisance for Britons who own property in Spain (or Europe), or who simply like to spend long periods of time enjoying its gorgeous weather.

I keep getting asked, almost every day, how to bypass the 90/180 rule. There are in fact four legal ways, and in this article, I will be covering the fourth one.

I’m going to keep this article short & simple, avoiding unnecessary legalities.

Who is this service for?

It’s intended for families or couples that have been separated, in and out of the EU. It seeks to reunite them in an expedite manner within the EU. So, although this type of visa is popularly dubbed as ‘marriage visa,’ it would be rather more appropriate to refer to it as ‘family visa’, as its scope goes well beyond a married couple. It ought to be understood in broader terms, as in family reunion. But yes, ‘marriage visa’ certainly does have more of a ring to it, I get it.

EU-Family Reunification

All those UK nationals married to a partner who hold a passport of a member state of the Union, may apply for this residency permit.

The catch is that the EU national must already reside, or plan to reside, in the Union.

As Great Britain is after all a nation of nations, we all have commingled blood. It is not uncommon for Britons to trace back in their family tree some distant Irish relative. If one of the partners secures an Irish passport, for example, this would automatically qualify them both for a EU-family regrouping. The Republic of Ireland remains a member state of the Union. This would allow a British couple to formally attain a Spanish residency permit, allowing them to neatly circumvent the 90/180-day pesky limitation. They would no longer be subject to this rule, being able to come and go as they please from Spain.

However, if both partners have no real intention of relocating their residency over to the Union (i.e. because they both wish to remain UK residents), this permit is not an option.

Marriage

One of the core requirements (for couples) is that they need to be lawfully married (not separated). An updated marriage certificate needs to be produced, as part of the application procedure. This is why it's popularly known as a 'marriage visa.'

Requirements

  • Married.
  • One of them is an EU national, or has attained permanent residency in Spain.
  • Both need to relocate & live in Spain.

 

Advantages over other residency options

 

The advantages offered by EU family reunification compared to the other three residency options are countless; in fact, so much so, that in my opinion it even beats a Golden Visa hands down, which is widely regarded as the golden standard (excuse the pun).

Pros

  • Unlike a Golden Visa, you are not required to make a large investment in Spain. In fact, you are not required to make any investment in Spain!
  • Unlike a non-lucrative visa, this permit allows its holders to work in Spain, either as self-employed or employed.
  • Unlike a lucrative visa, you are not expected to make circa 30,000 euros a year. In fact, it has attached no minimum annual income requirements!
  • It allows you unlimited access & stay to Spain, not being constrained by the 90/180 rule.
  • Moreover, it allows you unfettered access to Spain and the Union (27 countries). The time spent in Spain does not count towards the EUs 90/180 rule. This is most interesting to businesspeople, as they can smartly combine time periods to (over)stay in the EU effectively overriding the 90/180 rule, on business trips and such.
  • Same-sex marriages are accepted.
  • Because of the intrinsic nature of reuniting separated families, the procedure is actually fast-tracked compared to other residency alternatives, as uniting separated families is an admin priority. In plain English, you attain it much faster than following the other three options.
  • Legal fees for this residency service are in fact lower than the other three alternatives.
  • By its own nature, it is meant to be a fast-tracked procedure, meaning you are required to submit much less paperwork to comply. In other words, it greatly streamlines the residency procedure cutting through all the red tape. Additionally, it also cuts down in expenses on sworn translations, apostilles and all assorted legalia. Every penny counts.

Cons

  • You actually need to relocate and live in Spain.
  • You actually do need to get married. Eh well, nothing is perfect.

 

Tax residency

As always, administrative residency and tax residency are two separate legal concepts. The fact that you apply for a residency permit, does not make you tax resident in Spain.

However, that said, both concepts do go hand in hand, and eventually overlap; if you live all year round in Spain, you will eventually become tax resident in Spain.

Conclusion

An EU family regrouping is one of four legal ways to bypass the pesky 90/180-day rule that now applies to all UK nationals in a post-Brexit world.

If you are considering this route, it is advisable you take legal advice beforehand on how this option may impact you taxwise.

An EU family regrouping is as good as it gets; it’s a win-win and has no strings attached (well, other than the getting married part).

 

“Life is short, but marriage is long... so drink up, and it will make it go a hell of a lot faster.” Quote from the movie “Rumour Has It…”

 

LNA has a 100% track record attaining Spanish residency

Larraín Nesbitt Lawyers, small on fees, big on service.

At Larrain Nesbitt Abogados, we have assisted hundreds of EU and non-EU nationals to successfully attain a Spanish residency permit.

Interested? Come and speak to Larraín Nesbitt Abogados’ friendly staff who will be pleased to guide you through the different residency options, choosing the one that appeals to you most. Your family’s success is only one call away: (+34) 952 19 22 88.

 

Residency services available from LNA

 

Golden Visa related articles

 

Article also published at Spanish Property Insight: EU-family regrouping

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.

2.021 © Raymundo Larraín Nesbitt. All Rights Reserved.

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