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Non-Resident Imputed Income Tax end-of-year reminder (NRIIT)

Raymundo Larraín Nesbitt, December, 1. 2019

The clock is ticking. If you are non-resident, and you own property in Spain, this is your last chance to file your Non-Resident Imputed Income Tax for year 2019. Even if you do not rent it out, you need to file this end-of-year tax. We file taxes online all over Spain.

Marbella-based Larrain Nesbitt Lawyers has over 16 year’s taxation & conveyancing experience at your service. 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.

Blog post copyrighted © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer – Abogado
1st of December 2019

 

The end of 2019 fast approaches.

One of our last blog posts for this year, is a gentle tax reminder.

All non-residents, who own property in Spain, need to file by the end of this year a tax called Non-Resident Imputed Income Tax (NRIIT, for short), even if you do not rent out your Spanish property. You are taxed on the previous year (2018).

We offer the following taxation service for a flat fee of 100 euros plus VAT/year.

We file your tax online within 24 hours.

Our last day to file this tax in 2019 is Friday the 20th of December.

 

We offer the most competitive fees in the market.

Non-Resident Imputed Income Tax (Fiscal Representation Service) €100/year

We are specialized in taxation

 

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

Larraín Nesbitt Lawyers is a law firm specialized in taxation, conveyancing, 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.

Legal & tax services available from Larraín Nesbitt Lawyers:

 

Holiday lettings taxation-related articles

 

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.

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Sotheby’s, our most illustrious plagiarist (to date)

Raymundo Larraín Nesbitt, November, 18. 2019

Marbella-based Larraín Nesbitt Lawyers has over 16 year’s taxation & conveyancing experience, offering you 40 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 © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21st of November 2019

 

Before publishing this post, Sotheby’s International Realty was contacted multiple times to no avail. They declined to comment, much less issue an apology, to any of our communication attempts.

It is with much surprise we learnt that a prestigious company as Sotheby’s, established in 1744, with an annual turnover of over $1bn, with over 1,600 employees, would stoop to plagiarize ad verbatim a 1,378 word copyrighted article from a small humble law firm as ours.

Our article was used to peddle their multi-million pound Golden Visa service marketed to affluent clients (service starts at 500,000). The only thing different was they removed my name, and company name, and replaced it with Sotheby’s company logo. When I worked in the United Kingdom for several years, plagiarism was frowned upon; perhaps times have moved on and standards have dropped since.

Our article was copyrighted on the 14th November 2013, it was one of the first articles published on Spain’s then newly approved Golden Visa law which garnered much attention. Sotheby’s International Realty (Gran Canary) plagiarized our article in 2018 offering it to their clients as a fact sheet on their Golden Visa service. Of the nine pages this Sotheby’s document has, five are word-for-word our copyrighted article. The initial 4 pages just give a general description of the Canary Islands and why you should invest there.

 

In other words, the core of Sotheby’s International Realty Golden Visa fact sheet hinges on our copyrighted work, which was lifted from our law firm’s website without our permission.

With well over 300 tax & legal articles written since 2004 in multiple languages and published in several hundred websites, magazines and newspapers, we’ve caught over 1,415 individuals and companies plagiarizing us over the years. Every week we catch an average of two. Every article and blog post we write is painstakingly registered for copyright before it’s published (such as this one); any discussion over authorship rights ends before it even begins.

Anyone can use our articles as long as we are duly credited, is this too much to ask for?

 

Plagiarism: Spot the Differences

Spoiler: no differences!

 

 

Sotheby’s article

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Our article

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Sotheby’s article

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Our article

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Sotheby’s article

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Our article

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Sotheby’s article

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Our article

 

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Sotheby’s article

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Our article

 

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Sotheby’s article

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Our article

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Plagio related articles:

Plagiarism: Flattery or Just Plain Stealing? – 7th May 2010

Plagiarism: Flattery or Just Plain Theft? – 8th October 2016

 

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 or finance 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.

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Of Palm Trees and Plumbing

Raymundo Larraín Nesbitt, November, 11. 2019

Marbella-based Larrain Nesbitt Lawyers has over 16 year’s taxation & conveyancing experience at your service. 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 © 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
11th of November 2019

 

Today Saint Martin’s day (AKA as the Old Halloween), I thought I would write on a recent client inquiry we had.

Our American client wished to rent long term a villa perched atop a hill, which had commanding sea views, nestled in the beautiful peaceful town of Benahavis (Malaga). He approached us because he had gnawing doubts on a great lease deal he had found on internet. The monthly rental was incredibly well priced (read well-below the market value) considering the luxury location, the size of the plot and the lavish villa which boasted its own mature garden. Wary of something that sounded too good to be true he hired our rentals read & review service.

At a first glance the lease agreement seemed fine, except of course for the remarkable low monthly rental. However, upon closer inspection a couple of clauses caught my attention.

The first one was a clause on garden maintenance. It all seemed standard given how he was renting after all a luxury villa with a lush mature garden. But I focused on a line that mentioned the tenant would be liable to prune all palm trees in the property. I went back to my client and asked him if the property had many palm trees. As it turned out the property had several dozen. My non-resident client was unaware that pruning tall old palm trees could fetch several hundred euros, per tree. All in all, you were easily looking at over 20,000 euros in pruning expenses, only in palm trees, let alone other garden maintenance.

The second clause which caught my attention, because it was unusual, was that a tenant also undertook the responsibility of repairing and replacing all the plumbing and piping of this old property. As this was a villa that was decades old there was a huge risk that, unbeknown to him, there were lurking problems not apparent to the naked eye. Unless you hired a chartered surveyor beforehand to review the plumbing, you simply could not know if the landlord was trying to pull a fast one on my client. Plumbing of established properties can easily be in the dozens of thousands of euros if workers need to dig up the house and replace the expensive tiling. By law, tenants are liable for all normal wear & tear. Plumbing should be excluded, unless you specifically agree to it in a lease agreement – in which case it becomes binding.

You could surmise the conniving landlord was all too aware of both issues and regularly baited gullible tenants with a very low monthly rental as an enticing hook. The landlord would then request to be paid upfront a sizeable deposit in guarantee the tenant fulfilled his ‘contractual duties’. If a tenant refused, he would simply pocket the large deposit as a breach of contract on non-performance.

Bottom line, what a tenant saved himself in monthly let, he would overpay by way of pruning the huge collection of mature palm trees and repairing (or replacing) the faulty decades-old piping system. Signing this contract will set you back by at least thirty thousand euros. When you factored in these two items, in balance, you concluded the rental was in fact grossly overpriced. A classic case of clickbait.

 

You can hire our rental read & service from only €121 (VAT inclusive): Rentals (read & review)

All lease agreements reviewed within 24 working hours, as from payment. Be proactive, talk to a lawyer. We can make it happen.

'If it sounds too good to be true, it probably is.' – Old adage

 

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

Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, 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 952 19 22 88 or by completing our contact form to book an appointment.

 

Legal services Larraín Nesbitt Lawyers can offer you

 

Rental-related articles

 

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.

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Did you know? Borrowers have a right to appoint a surveyor on mortgage-backed loans

Raymundo Larraín Nesbitt, November, 5. 2019

Marbella-based Larrain Nesbitt Lawyers has over 16 year’s taxation & conveyancing experience at your service. 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 © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer - Abogado
5th of November 2019

 

Most borrowers meekly accept the mortgage surveyor appointed by their lender. Probably because they do not know any better. But did you know that, following new laws, borrowers have the right to appoint their own surveyors for a mortgage loan? Interested?

Law 1/2013 of 14th of May amended Spain’s Mortgage Act from 1981 in its art 4:

“Las entidades de crédito, incluso aquellas que dispongan de servicios propios de tasación, estarán obligadas a aceptar cualquier tasación de un bien aportada por el cliente, siempre que, sea certificada por un tasador homologado de conformidad con lo previsto en la presente Ley…”

This article now reads that lenders are forced – by law – to accept any surveyor proposed by a client (borrower) as long as this surveyor is duly registered and homologated by the Bank of Spain.

You may be asking yourself, why on earth would you go into all the trouble of appointing your own surveyor instead of a lender’s? The answer is simple, lenders post-crash do very conservative property appraisals in mortgage loans (read 30 to 40% under the ‘real’ market value) to the point that more than one deal has gone under because of it. This benefits lenders, not borrowers (I know, shocking). The reason on why lenders would do this are explained in much detail in our in-depth article: Bank Valuations vs Market Value.

Next time you want to ask for a mortgage-backed loan in Spain, don’t be a sheep. Now you know you have a right to appoint your own property surveyor and your lender is forced to accept him/her (as long as homologated and registered with the Bank of Spain).

Either way, you will end up paying for a surveyor; you may as well choose someone that actually looks out for your interests and not the lenders'.

You are welcome.

 

We offer the most competitive fees in the market.

Conveyancing – Buying

We are specialized in conveyancing

 

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

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, inheritance, taxation and litigation. 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.

 

Legal services Larraín Nesbitt Lawyers can offer you

 

Mortgage-related articles

 

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. No sheep was harmed on writing this post. VOV.

2.019 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Happy Halloween!

Raymundo Larraín Nesbitt, October, 31. 2019

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Brexit checklist: it’s the final countdown

Raymundo Larraín Nesbitt, October, 10. 2019

Lawyer Raymond Nesbitt briefly reviews the Brexit checklist for expats living in Spain.

Article copyrighted © 2019. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
10th of October 2019

 

Well, it’s finally happening. Brexit is upon us.

We are on the run-up to the breakup of the Union, as we know it.

If you are an expat living in Spain, you’d do well to follow the rundown below:

  1. Apply for residency. 
  2. Attain a NIE number. 
  3. Enrol in your town hall census.
  4. Ensure you have access to healthcare in Spain.
  5. Exchange your UK driving licence for a Spanish one.

 

For up to date information on all Brexit matters, please browse HM Government webpage:

gov.uk/guidance/living-in-spain

 

 

 

 

“There is a remedy which ... would in a few years make all Europe ... free and ... happy. It is to re-create the European family, or as much of it as we can, and to provide it with a structure under which it can dwell in peace, in safety and in freedom. We must build a kind of United States of Europe... for those who will, for those who care.” – Sir Winston Churchill, University of Zurich speech, 1946.

 

Sir Winston Leonard Spencer-Churchill (1874 – 1965). Born into a privileged aristocratic family,  he was an eminent British career officer, artist, historian, delicious eccentric and laureate writer – awarded the Nobel Prize in Literature in 1953 “for his mastery of historical and biographical description as well as for brilliant oratory in defending exalted human values.” With dogged single-minded determination he defied alone, and managed to stave off, the tyrannical Nazi wave in WWII, unwaveringly assisted by our American cousins, which threatened to swallow whole the United Kingdom; as it had already overrun most of Europe. He resolutely led the country out of its darkest times, restored Europe's freedom and laid the groundwork for peace and prosperity which all future generations have come to enjoy since and taken for granted, or so it would seem. As a keen-eyed historian, in line with fellow Founding Fathers Schuman and Monnet, he was quick to grasp and understand the importance of a united Europe to avoid repeat past mistakes which had resulted in two world wars that ravaged the continent. Consequently, he became a staunch defender of the idea of creating a single supranational political and economic entity which reconciled old foes and would act as guarantor of peace & prosperity in the continent (in his own words, a “United States of Europe”); in time, this European fellowship would be known to us as the European Union. Churchill was instrumental, and the key driving force, behind the creation of the Council of Europe, a forerunner of what is now the European Union. He is credited as one of eleven Founding Fathers of the Union. Churchill incarnated like no other the best of British values. A child of the House of Commons, he was a proud servant of the State, never its master. A true statesman that would always put ahead of any consideration the best interests of his people, semper fidelis to Lincoln's Gettysburg ideals, by tearing down divisive walls and fostering at every opportunity union. Simply put, he’s likely the finest British politician ever to grace 10 Downing Street.

 

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

Larraín Nesbitt Lawyers is a law firm specialized in taxation, inheritance, conveyancing, 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 952 19 22 88 or by completing our contact form.

 

Related legal services

 

Brexit-related articles

 

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 secessionist politician was harmed on writing this article. VOV.

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Reminder - Q3 2019 Non-Resident Income Tax filing

Raymundo Larraín Nesbitt, October, 1. 2019

Marbella-based Larraín Nesbitt Lawyers has over 16 years' taxation & conveyancing experience at your service. We offer a wide range of 40 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.

Copyrighted © 2019. Plagiarism will be criminally prosecuted.

 

Just a gentle reminder to all non-residents, who own property in Spain and rent it out (whether long or short-term i.e. holiday home); you must file your Q3 2019 quarterly tax return now in October. You are being taxed on your rental income for the previous three months: July, August and September.

For 2019, the non-resident tax calendar is as follows:

  • Q1 January – March. Filed on the first 15 days of April.
  • Q2 April – June. Filed on the first 15 days of July.
  • Q3 July – September. Filed on the first 15 days of October.
  • Q4 October – December. Filed on the first 15 days of January 2020.

 

Our cut-off date to accept filing Q3 2019 non-resident tax returns is Tuesday the 15th of October 2019.

Please do not wait until the last moment to submit your quarterly tax return. We file this tax online all over Spain within 24 working hours.

We can offer you this tax service for a very competitive fee: 125 euros plus VAT.

The quoted fee is per property and per tax quarter, it includes up to two joint owners i.e. husband & wife.

Our fees are tax-deductible from the tax to pay.

The main highlight of this tax service is that we reduce your rental income tax by 70%, or more, on applying for landlord tax relief on all your property-related expenses.

Contact us and pay less taxes in Spain. If you overpay taxes, it is only because you want to.

 

Q3 2019 tax submission period

From the 1st of October to the 20th of October 2019.

Related tax service

Holiday Rental Accounting Service (HRAS)

Related taxation articles

 

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.

2.019 © Raymundo Larraín Nesbitt. All rights reserved.

 

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Planning AMNESTY in Andalusia

Raymundo Larraín Nesbitt, September, 27. 2019

Marbella-based Larraín Nesbitt Lawyers has over 16 year’s taxation & conveyancing experience, offering you 40 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 © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
25th of September 2019

Yesterday Tuesday the 24th of September 2019, the Junta de Andalucía passed a new law which effectively paves the way to legalizing over 327,000 illegal properties in the region of Andalusia. EDIT: The new law was published in Andalusia’s Official Law Gazette (BOJA):

Decreto-ley 3/2019, de 24 de septiembre, de medidas urgentes para la adecuación ambiental y territorial de las edificaciones irregulares en la Comunidad Autónoma de Andalucía.

In PDF format: link.

I must point out that the law itself, and the Junta by extension, are very careful to go out of their way to not label it as a ‘planning amnesty’. I stress that (officially) this is NOT an amnesty.

Silly me, being a country boy, I cannot help but think of a popular quote I’ll borrow from James Whitcombe Riley:

“If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.”

So, although this unprecedented law has the impact and the hallmark of a large scale amnesty, please bear with me if I clumsily label it as an ‘amnesty’, because according to all official sources it ‘clearly’ is not, capisce? Semantics.

The former Socialist Government, that was in power in Andalusia for almost 40 years, managed to regularize a whopping 1,500 illegal properties in all this time. This new law slashes the Gordian knot and opens the way for hundreds of thousands of property owners, mostly rural ones, to see their illegal properties regularized once and for all. This will have an incredibly positive impact on the market and it was a much needed measure. Needless to say, it will make the job of selling rural properties a breeze compared to the nightmare thousands of expats having been facing over selling their AFO’s.

The law looks particularly at grouped houses or urbanizaciones. The onus falls on the owner to kickstart the legalization procedure. The great breakthrough this law brings to the table is that, unlike before, these legalizations are not tied to the approval of each municipal Master Urban Plan (Plan General de Ordenación Urbana, popularly dubbed as PGOU). This greatly pushed back the procedure by several years, if at all.

To my mind this is an amnesty in all but name. This is yet another brazen step in the right direction for the Junta de Andalucía. Again, kudos to them for breaking this nightmarish gridlock that has kept thousands of expat families worried sick for countless years. It is very refreshing to see politicians doing their job.

Watch this space for more updates on this.

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Conveyancing – Buying fees on application

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

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, inheritance, taxation and litigation. 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.

Blog post originally published in Spanish Property Insight: Planning AMNESTY in Andalusia

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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.

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The (non) importance of a Spanish Title deed

Raymundo Larraín Nesbitt, September, 21. 2019

Marbella-based Larraín Nesbitt Lawyers has over 16 years' taxation & conveyancing experience at your service. We offer a wide range of 40 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 © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21st September 2019

 

I was talking the other idea with some clients and the conversation left me reeling; it made me realize the importance of a common mistake foreigners make, particularly British. A simple honest mistake that can lead you to lose your house.

It turns out a family member had not paid for several years the Community of Owners nor the local taxes to the town hall (IBI tax) where the property was located. They requested from us a nota simple. The nota simple revealed they had two legal embargoes against the property and that two property proceedings were under way to impound it.

I talked with my clients letting them know it was imperative they cleared up the arrears or else they risked losing the property ownership to their creditors. Their smug reply stunned me. They told me not to worry, as the property transfer was not possible so long as they held the original Title deed stored in a safe in England! I was gobsmacked.

Frankly, I did not even know where to begin to explain how wrong they were. It would seem some friendly agent told them a load of tosh. This poppycock will lead them to lose their house.

This small anecdote paved the way for this short blog post explaining that an original Title deed in Spain is in truth not that important, unlike in other countries in which transfer of ownership is not possible without it.

Personally, I much prefer using original Title deeds in conveyancing because they have all the useful seals and extra information from the tax office and from the Land Registry. However, in Spain if your original property deed gets lost, burnt or vandalized by a toddler it really bears no importance. You can always request a simple copy or else an authorized copy from the Notary before which it was signed. If you do not have the Notary details, or have forgotten them, they are always available in the nota simple, which can easily be requested from us in under 24 hours.

Back to my original story, it goes without saying that a creditor pursuing a loan in Spain against a property can take lawful possession of it through the law courts without having access to the ‘original’ Title deed. Anyone telling you the opposite, doesn't know what they are talking about.

 

We offer the most competitive fees in the market.

Conveyancing – Buying

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

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, inheritance, taxation and litigation. 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.

 

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Related articles

 

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.

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IRPH mortgage loan benchmark index in the line of fire

Raymundo Larraín Nesbitt, September, 11. 2019

Marbella-based Larraín Nesbitt Lawyers has over 16 years' taxation & conveyancing experience at your service. We offer a wide range of 40 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 © 2019. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer - Abogado
11th of September 2019

 

 

The ECJ's Attorney General passed yesterday a formal opinion on the latest scandal that engulfs the Spanish banking sector: IRPH index in mortgage-backed loans.

Although his opinion is not binding, the fact is that the ECJ normally follows his legal opinions and acts upon them. The ECJ will rule next January 2020 on this clause which affects over one million mortgage loans in Spain.

His opinion basically was that the elaboration of this index, which dates from 1994, is convoluted and your average layman has no hope in hell in understanding how it is calculated and how it works. Shocking, who would have guessed?

Spanish banks allegedly may exert a ‘certain’ degree of control over the IRPH (which happens to be calculated in Spain), as opposed to the EURIBOR (which is calculated at a supranational level, European-wide). The fact is the IRPH has remained stubbornly higher (significantly so) than the EURIBOR rate by at least 100 basic points, no less. Needless to say, this surprising deviation (given the QE policy of the ECB to flood the money markets with cheap money in an attempt to stave off a severe Great Recession) favours lenders greatly which just may go on to explain why Spanish lenders have proven so very keen over the last decade to push and reference all new mortgage loans to the IRPH index in lieu of the EURIBOR. But that’s just idle speculation on my part, who knows?

As a result of the formal opinion of this ECJ high-ranking lawyer, it is highly likely the ECJ will rule next January against the IRPH, considering it an abusive clause. Needless to say, this will open the floodgates to yet another tidal wave of litigation against the beleaguered Spanish bank sector which already struggles to remain afloat in the wake of hundreds of thousands of lawsuits lost. Experts estimate the compensation due to borrowers starts at 4 billion and may go as high as 44 billion euros, depending on the retroactivity of cases.  

Logically, when the news broke out, it triggered a massive stock slide which resulted in the banking sector being mauled.

Fun fact: Spain’s Supreme Court ruled back in 2018 (in favour of banks, surprise!) that the IRPH index was in fact transparent and legal and quashed all consumer cases on grounds of an abusive clause.

It will be most interesting to read next January the ECJ’s ruling on this matter which, in all likelihood, will neatly overrule Spain’s Supreme Court criteria - yet again - in favour of consumers, borrowers and struggling families at large. Ah, déjà vu.

My heart goes out to lenders, bless their warm hearts.

 

We offer the most competitive fees in the market.

Conveyancing – Buying

We are specialized in conveyancing

 

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

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, inheritance, taxation and litigation. 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.

 

Legal services Larraín Nesbitt Lawyers can offer you

 

Mortgage-related articles

 

 

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. No banker was harmed on writing this post. VOV.

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