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Government imposes night-time curfew until the 9th of May 2021

Raymundo Larraín Nesbitt, October, 26. 2020

Marbella-based Larraín Nesbitt Abogados has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
26th of October 2020

 

The Spanish government unilaterally approved yesterday a new six-month night-time curfew in a new bid to combat the spread of Covid-19. The curfew starts at 23:00 and extends until 06:00. The last day of the curfew is the 9th of May 2021. It has also banned gatherings of more than six people, unless they live together.

Strictly, from a legal point of view, this measure is unconstitutional. States of alarm cannot exceed 15 days and must be renewed. This requires a political consensus.

The main problem of this measure - besides being illegal - is that it may turn out to be the death knell for the hospitality sector, which had already greatly suffered since the last government-imposed lockdown from March, which lasted almost 4 months. Restaurants, cinemas, bars, discotheques, hotels will all suffer greatly to the point it will push many to the brink.

I cannot claim to be an expert on these matters, because I'm not, but I have pointed out repeatedly that these measures of lockdowns et al are killing the economy, and with it annihilating Spain's middle class. Millions of people are going to end up jobless unless our social-communist government does something to avoid it. The middle class is what gives countries financial strength and political stability. If you take it away, a country will yield to political instability, lose wealth and become polarized.

I can only hope these new draconian measures will help fight the virus, the real enemy.

 

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.

  

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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Motion of no confidence: Damned if you do and damned if you don’t

Raymundo Larraín Nesbitt, October, 21. 2020

Marbella-based Larraín Nesbitt Abogados has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21st of October 2020

Today in Spain Congress is going to debate a motion of no confidence sponsored by Spain’s far-right wing political group VOX. Although officially it is aimed at Spain’s Prime Minister, Mr. Pedro Sanchez, its main victim will be Mr. Pablo Casado, leader of the centre right-wing political group PP.

Mr. Casado has foolishly allowed himself to be cornered politically in a faux pas that may prove his political undoing and even perhaps the demise of the moderate centre-right-wing group he represents. Make no mistake, this motion was always doomed to fail as the numbers did not stack up. Mr. Sanchez in truth couldn’t be any happier at the clumsy political manoeuvre taking place today at Congress.

Mr. Casado is doomed, one way or another, and with him Spain’s moderate centre-right. If he votes yes, he would be seen as a sidekick of the far-right in Spain, giving way to justified flak from left-wing groups as it would be tantamount to acknowledge he's a lackey of the far right and there are much in the same political spectrum. Left-wingers will not lose this golden opportunity to pulverize the PP to no end on voting yes.

On the other hand, if he votes no or abstains, a large part of his disenfranchised electoral base is likely to desert him as they overwhelmingly want him to vote yes to oust Mr. Sanchez from power. In the next poll call it would lead to a great weakening of the PP who would likely be overtaken by far-right-wing VOX in an epic sorpasso. In effect, voting no will lead to a political polarization of Spain who would now have two distinct polarized fronts: extreme left-wingers and extreme right-wingers, with all the centre coalition melting away into oblivion.

Needless to say, this will lead the country to be polarized, giving way to a political instability which we have not witnessed in Spain since the dark days of 1936 that foreshadowed Spain’s fraticidal Civil War.

The only person to blame for this political checkmate is Mr. Casado himself, for his disturbing lack of political foresight. He was given the opportunity earlier on this year to call the motion himself – which would have also failed, mind you – but at least there would be no fallout from his alienated electorate, unlike now.

Today’s winners, of a motion doomed to fail, will be Mr. Sanchez, granted, but also Mr. Abascal, leader of far-right extremists VOX. The loser, who cannot blame anyone but himself, will be Spain’s moderate PP leader, Mr. Casado.

Albeit in truth the losers will be all of us, Democracy and Spanish society at large. As it would lead to the polarization of Spain’s politics and the disappearance of the moderate democratic political forces that have acted as the political glue binding together both radical extremes since the approval of Spain’s Constitution in 1978. Dark days ahead of us.

Damned if you do, damned if you don’t.

Those who cannot remember the past are condemned to repeat it.” George Santayana

Jorge Agustín Nicolás Ruiz de Santayana y Borrás (1863 –1952). Was a philosopher, essayist, poet, and novelist. Originally from Spain, Santayana was raised and educated in the US from the age of eight and identified himself as an American, although he always retained a valid Spanish passport. He wrote in English and is generally considered an American man of letters. At the age of 48, Santayana left his position at Harvard and returned to Europe permanently. Santayana is popularly known for his aphorisms, such as the one we quote above.

 

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.

  

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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Assault on the Judiciary

Raymundo Larraín Nesbitt, October, 16. 2020

Marbella-based Larraín Nesbitt Abogados has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

 

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
16th of October 2020

The speed at which legal events are unfolding in Spain as of late is making it increasingly hard to keep up with them. There have been two very serious events involving our Beloved Leaders (read social-communist government) that have transpired over the last 10 days, and in this blog post I am going to focus mainly on one of them.

The reason why artists, in general, depict Justice as a woman with a blindfold has nothing to do with a sexual innuendo from an E.L. James 50 Shades of Grey novella, it has to do with independence, with neutrality. Although judges are human, and therefore fallible, with preconceived ideas and notions, they must always strive for legal independence, with no bias on their rulings which safeguards our rights to a fair trial.

For a Democracy to be strong, the separation of the three powers must be clear: executive, legislative, and judiciary. The term “separation of powers" was coined by no other than Charles-Louis de Secondat, baron de La Brède et de Montesquieu, himself a judge. It is at the very core of a healthy democracy to keep all three powers mutually in check and balanced, otherwise we fall prey to corruption and manipulation. If the Western block has been historically strong and free, as opposed to other autocratic forms of government due East, it can be pinned down to their Democracies. There can be no strong economy and freedom unless democratic ideals are resolutely upheld.

It has always struck me as odd, and made me sick to the pit of my stomach, that Spanish politicians have the power to choose the 20 members that make Spain’s Consejo General del Poder Judicial (CGPJ, for short) which in turn appoints all judges. Perhaps I am being naïve, or a foolish idealistic, but I strongly believe that judges in Spain ought to be chosen by their peers, without ANY external influence, let alone politicians meddling.

Unfortunately, in Spain, we’ve had a system whereby these 20 members were appointed by a 3/5 majority by all political parties, spanning from left to right-wing. Not ideal, not perfect, but it somehow maintained the semblance of integrity and impartiality at least. As written, I personally loathe this system, and would much rather have judges choosing between themselves to keep the judiciary appointment clean and neutral, or at the very least as much as is humanly possible.

Spain’s ruling social-communist coalition, led by Pedro and Pablo, Pablo and Pedro, our Beloved Leaders, dynamited this 45-year-old democratic tradition in a totalitarian power grab this week that would even make Putin blush (and that’s a tough call). They announced the draft of a new law that would allow them to directly choose the 20 members of the CGPJ with a simple majority (50+1). In practice, this translates to our Beloved Leaders bypassing the political opposition and naming judges directly. In other words, the government, the executive, would have the unbridled power to directly choose which judges occupy their new stations.

This is a direct affront to Spain’s Constitution and to democratic ideals themselves.  This is a political move straight out of the playbook of Maduro in Venezuela. One day you go to bed in a Western Democracy, and on the following you wake up in Venezuela. This new law, if enacted, needs to be repealed at all levels, including before the European Union for its grave unconstitutionality and anti-democratic values. Borrowing from Montesquieu, “Pour qu'on ne puisse abuser du pouvoir, il faut que le pouvoir arrête le pouvoir.”

You may think this is a one-off, or perhaps a bluff to force the hand of the PP in Spain, well it is not. It is here to stay and must be stopped on its tracks for the good of the people.

The second dictatorial move I’ve witnessed over the last week has been Madrid’s unjustified lockdown. Our Beloved Leaders were hell-bent to seize power and control over the autonomous region of Madrid, under the power of PP, and declared unilaterally a lockdown on it arguing the number of Covid cases had spun out of control with over 450 cases per 100,000 inhabitants alleging it could no longer wait given the "alarming gravity" of the situation.

Curiously, the autonomous region of Navarre, which has over 811 reported cases per 100,000 inhabitants remains totally out of the government’s radar, they have done nada. But then Navarre is under the political control of the Basque Nationalists (read separatists) which are unconditional allies of our Beloved Leaders. You also have the case of Catalonia, also under the control of a separatist group, close political ally of our Beloved Leaders, which also happens to exceed Madrid’s cases with 500, but alas, they too remain free and without a lockdown. It is amazing to see how these government-imposed lockdowns appear to be arbitrary and would seem politically motivated, God forbid.

Lockdowns are killing businesses, people are losing their jobs by the thousands and should only be used as last resort as they OBLITERATE local economies. When the dust settles, we will see how the financial repercussions of the Covid-19 outbreak will far outstrip the health ones. Madrid is Spain’s economic engine, if you stall it, Spain’s economy will go downhill pronto with very nasty consequences for us all, least of all financial or health-related.

The President of the World Bank, Mr. David Malpass, has openly acknowledged in multiple interviews that we are living in a II Great Depression, which is what I’ve been banging on since March this year when it all began. Politicians need to step up their game and start acting like ‘real’ statesmen instead of being in denial mode and using the pandemic as an excuse to further their political agenda.

Unless we all work together - as one - and leave petty political differences aside, the virus will win us over. We are waging a war against it, anyone who doesn’t see this has already lost.

 

“Il n'y a point encore de liberté, si la puissance de juger n'est pas séparée de la puissance législative, et de l'exécutrice. Si elle était jointe à la puissance législative, le pouvoir sur la vie et la liberté des citoyens serait arbitraire; car le juge serait législateur.” –  Montesquieu

“If the legislative and executive authorities are one institution, there will be no freedom. There won't be freedom anyway if the judiciary body is not separated from the legislative and executive authorities and the freedom of citizens would be arbitrary, as the judge, in effect, would be the legislative.”

Charles-Louis de Secondat, Baron de La Brède et de Montesquieu (1689 – 1755). Was a French judge, man of letters, and political philosopher. He is the principal source of the theory of separation of powers, which is implemented in many constitutions throughout the world. His anonymously-published The Spirit of Law in 1748, which was received well in both Great Britain and the American colonies, influenced the Founding Fathers in drafting the United States Constitution.

 

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.

  

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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Marbella creates a special police task force to prevent squatting

Raymundo Larraín Nesbitt, October, 8. 2020

Marbella-based Larraín Nesbitt Abogados has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

Inset image: The beautiful La Concha mountain that majestically presides over Marbella and gives it its renowned microclimate

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
8th of October 2020

 

As we reported back in August, since the covid-19 outbreak began, squatters are overrunning Spanish properties. A new trend has emerged this year whereby they are specifically targeting empty expat overseas homes.

Despite what some frontline communist political leaders in Spain would have us believe, that only bank-owned unoccupied homes are squatted, the fact is that squatting has become an ubiquitous nightmare for foreigners in Spain, particularly in Catalonia, where it is out of control.

Spain’s Vice President and Communist leader, Mr. Pablo Iglesias, has made several remarks in the past downplaying the squatter problem and shrugging it all off as fake news. And I would likely agree too, if I were also protected by his 30-men praetorian squad that guards his luxury villa (sic) in a bourgeois Madrid urbanization 24-7 (resic). I guess the world does indeed look a little different and safer when highly-trained armed men guard your earthly possessions round the clock. So much for political congruence though.

Even Spain’s General Prosecutor, Ms Delgado, came out last September and was forced to do a lukewarm speech in defence of ownership rights and against squatters on the wake of a public outcry spurred by recent events in Madrid (Eurovillas).

Anyway, back in the real world, where elite armed men wearing balaclavas don’t guard people’s humble houses, the problem goes on. I had already collated in my previous post the underlying reasons for this explosive growth in squatting. The main issue is that the social-communist government that rules Spain contemplates this political movement with sympathetic eyes, openly abetting it, and in fact some of its hard-left brass (read communist) are very much pro-squatter having even been actively involved in the movement during their not-so-distant youth. The situation has gotten so out of control that even lawyers defending landlords are now being viciously targeted by such extremist movements, such as this week’s heinous attack on a law firm, it’s lawyers and workers in Valencia.

With all this going on, Marbella has decided to tackle the matter “pre-emptively” and has created its own special task force of 30 men committed in the ‘defence’ of ownership rights (sic). Marbella is Andalusia's tourism flagship, and it is no secret we have a lot of empty houses standing around owned by fellow expatriates. This is a very good measure, as it sends a clear message on whose side the local Authorities are on, so kudos to our Mayoress Mrs. Ángeles Muñoz and her team on their much-lauded initiative. You can read the full story in Diario Sur, by Héctor Barbotta: Marbella pondrá en marcha una unidad de la Policía Local para evitar ocupaciones de viviendas.

When the rule of law is no longer abided and private property ceases to be respected and enforced in society, and the powers that be are effectively working tirelessly to erode it, day in and day out, the very fabric of social stability is at stake bringing along social unrest and political instability. The perfect breeding ground for any self-respecting revolution that wishes to topple the establishment and has in its agenda to bring a new order.

 

If you have squatters occupying your property on the Costa del Sol (Malaga), contact us ASAP. We will get rid of them swiftly and put an end to your growing nightmare for a very reasonable fee. It’s very important you contact us within the first 48 hours of them breaking in.

 

 

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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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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Reminder - Q3 2020 Non-Resident Income Tax filing

Raymundo Larraín Nesbitt, September, 30. 2020

Marbella-based Larraín Nesbitt Lawyers has over 17 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.

Copyrighted © 2020. 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 2020 quarterly tax return now in October. You are being taxed on your rental income for the previous three months: July, August and September.

For 2020, 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 2021

 

Our cut-off date to accept filing Q3 2020 non-resident tax returns is Thursday the 15th of October 2020.

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 21% 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 100% 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 tax in Spain. If you overpay taxes, it is only because you want to.

 

Q3 2020 tax submission period

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

Related tax service

Holiday Rental Accounting Service (HRAS)

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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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Renting: be wary of signing ‘reservation’ contracts

Raymundo Larraín Nesbitt, September, 21. 2020

Marbella-based Larraín Nesbitt Abogados (LNA) has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21st of September 2020

Spain is a very open country that accommodates people from all walks of life. The friendliness of Spanish people, coupled with its gorgeous weather and active nightlife, makes it a very attractive proposition to spend time living and enjoying life in a liberal society. Most people will dip their toes by renting out property before committing to buying, which is a very sensible thing to do and we strongly advise it in all our conveyance articles. You should always rent out first in the area you fancy living in to see how it works out for you.

Last week I had to deal with a case in Barcelona that is a prime example of why you should be wary of signing reservation contracts on renting in Spain.

With the excuse the property was in a highly sought-after location, and someone else could snag it, the tenants were forced to pay a non-refundable deposit equivalent to one month’s rental to strike the property off the market for the next 30 days.

The problem was that the tenants had not seen the final contract itself, only this pre-contract reserving the property which was only a few paragraphs long and didn’t go into any details. Once signed, a few days later they emailed them a copy of the proposed rental contract, which I reviewed.

The second (and final) contract was a prime example of abusive clauses. Not only did the landlord force the tenants to pay for all the normal expenses (i.e. water, gas and electricity) but also for the community of owner’s fees, local taxes (even garbage collection), and also for the annual maintenance of the (worn out) heater! On top of this abuse, they also made the tenants responsible for any and all damages to water pipes, electrical grid, rooftop, drainage and gutters! This is a problem, because as the property was fairly old, it was highly likely there were hidden issues not apparent to the naked eye the tenant was unaware of.

Needless to say, the contract was a total rip off. The problem was that as they had already signed a ‘pre-contract’ with the estate agency, and it specifically stated the reservation deposit was non-refundable; if they did not sign the lease, they would forfeit a whole month’s deposit, which was a lot of money. Although a sizeable loss, it was always better than getting into a long-term contract (five years plus) with such abusive one-sided conditions that could prove most onerous on the long run.

On negotiating, you always have leverage until you part with your money. Don’t fall for the drivel of blindly signing pre-contracts, or reservation contracts, only because you are being railroaded into signing them. It’s just standard sales pitch, and it’s poppycock.

Although this proved to be an expensive experience for them, we can glean a valuable lesson that is useful to legions of other would-be tenants, particularly in large cities such as Madrid and Barcelona. The lesson one takes from this is that you NEVER pay a penny unless you are first shown the wording of the final rental contract

"Every pound is a prisoner.” Margaret Nesbitt

 

Larraín Nesbitt Abogados, small on fees, big on service

LNA is a law firm specialized in conveyancing, taxation, residency, 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. 

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Article originally published at IDEALISTA: Renting: be wary of signing ‘reservation’ contracts

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.

2.020 © Raymundo Larraín Nesbitt. All Rights Reserved.

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Huge bargains available in long-term rentals in Spain

Raymundo Larraín Nesbitt, September, 11. 2020

Marbella-based Larraín Nesbitt Abogados (LNA) has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
11th of September 2020

 

Although I’m guilty as anyone of reporting the negative impact of Covid-19 in the Spanish real estate market, the fact is that it has also opened up a slew of new opportunities well-worth looking into.

I had already reported at large in previous articles how the virus outbreak has created a number of singular buying opportunities for savvy investors with steep discounts (understatement).

Likewise, it has also created unique opportunities on renting out in Spain, specifically long term. In today’s blog I’m going to expand on how the pandemic has opened up new opportunities on renting out long term in Spain.

Before the epidemic hit Spain, long term lets were hard to come by and were largely overpriced. This is because landlords were focused instead on the hugely profitable holiday rental market. However, due to the ongoing pandemic, holidaymakers shunned Spain this summer mainly because of the pesky quarantine requirements back in their home countries. Now that the new reality has sunk in, landlords have swiftly shifted gears and are viewing long term rentals with renewed love & interest.

There is a huge untapped latent demand for long term rentals. Which goes on to explain why landlords have flipped over en masse to long term instead. This huge influx in supply of long term rentals has (greatly) impacted the market, dragging down prices significantly. As Spanish daily El Mundo reported this week, lets have dropped by 50% in Ibiza.

Shrewd tenants can now bag themselves a two-digit discounted rental in prime locations in Spain i.e. Marbella and Balearics. This is nothing to scoff about, as when you sign a long term lease - by law - you can remain up to five or seven years in a property (even eight or ten years, depending on whether the landlord is a physical or legal person and also if a silent renewal is triggered).

Securing a lease contract at a huge bargain price on a prime location for an extended period of time almost sounds too good to be true, but it’s happening right now. This is one of many untold positive consequences of the virus outbreak in our real estate market. I dare say it really is a once-in-a-lifetime opportunity.

The pandemic will be over in a year or two, confidence will return, and the market will rebound strongly, as it always does when it overreacts. The pent-up demand for rentals in Spain cannot be overstated enough.

And when all is said and done, and the dust has settled, your rental contract will continue to go on unfettered for many more years after the epidemic is over, at a huge discount; well-below its true market value.

This (unique) market opportunity is of particular interest to:

 

As the Chinese say, “Crisis is an opportunity.”

If this is not a great market opportunity, then frankly, I don’t know what is.

 

 

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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Article originally published in Spanish Property Insight: Good news: Huge bargains available in long-term rentals 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.

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POSSESSION: why you should never allow a seller to remain in a property AFTER completion

Raymundo Larraín Nesbitt, September, 1. 2020

Marbella-based Larraín Nesbitt Abogados (LNA) has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

This blog post is the second of a two-part series dealing on possession. First part is: Possession: why you should never hand over your house keys BEFORE completion – 21st August 2020.

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
1st of September 2020

 

Congratulations, you finally bought a house in Spain and you are all giddy at the thought! It is an exciting moment for a buyer. However, some devious sellers take advantage of a buyer’s good faith at this moment of weakness requesting to remain in the property post-completion only “for a few days” until they sort out some matters.

If you are buying property in Spain, you should never allow a seller to remain in the property after you complete at a Notary - ever.

The excuses given are all assorted (preferably tear-shedding ones that build rapport appealing to lofty values, which always work best on gentle souls):

  • “It is now the summertime season and for the life of me I cannot find affordable alternative accommodation” (I’m skint and homeless, have pity on me).
  • “I’m elderly and only need a couple of days to sort out some admin paperwork and I will be off in a jiffy” (I could be your father, you know).
  • “My pet Bungo can’t stand hotels. My vet says he needs fresh grass and sunlight for a few more days until I book my flight back to the UK” (you do care for animals, yes?)
  • “I’m undergoing medical treatment; I need more time before I can move out” (I’m old and sick, have pity on me)
  • Other.

 

The fact is that some shrewd cookies, after selling a property, have no intention whatsoever of leaving the property they have just sold you. And why would they? It is all advantages for them to (over) stay in it:

  • They have just been paid for the property, so they are sitting on a pile of cash. It’s not as if they are cash-strapped.
  • They don’t need to pay a rental, because they ALREADY have the possession of the property, YOUR property.
  • They don’t need to move in their ‘stuff’, it is already there.
  • Any unpaid taxes or bills, they will not be responsible for, it is the new owner who is liable for them.
  • And God forbid the new owner stops paying the taxes, changes the locks or shuts off the utilities as he may find himself being criminally prosecuted by the vendor (coercion and/or illegal trespassing).

 

Some vendors abuse their position, and besides cashing in on the property, they get a free pass on a free rental, all scot-free.

Buyers naively think they can just waltz in and change the locks to the property or shut off the utilities. Well, they are in for a rude awakening on how law works in Spain. The vendor can file a police report (denuncia) and the naïve buyer can be remanded into custody for illegal trespassing and or coercion. This is because the vendor only handed over the title to the property, NOT the possession.

If a buyer wants to vacate an abusive vendor, he will be forced to hire a litigation lawyer and go through a full-blown eviction procedure at his own cost. These, on average, are taking 6 to 9 months in Spain. So, for the next 6 to 9 months the vendor avails himself with free rental and his lifestyle continues just the same as it was (well, with a few extra zeros in the bank and without having to pay any bills or taxes). Not bad, eh? Win-win.

Bottom line, don’t be a muppet, never allow a vendor to stay in a property post-completion, ever. Always demand possession on completing before a Notary Public. No house keys, no completion, period.

It all boils down to possession.

Pro-tip: NEVER allow a seller to remain in a property after you sign the Title deed at a Notary Public. Ever. You must always DEMAND the house keys and full possession at the time of completion before a notary. Settle for nothing less.

You're welcome.

Possession is nine-tenths of the law.”  Scottish expression.

 

At LNA we assist you buying, selling, or renting for a very competitive fee.

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

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

Related services available from Larraín Nesbitt Abogados

 

 Selling property-related articles

 

Article originally published at IDEALISTA: Possession: why you should never allow a seller to remain in a property post-completion

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.

2.020 © Raymundo Larraín Nesbitt. All Rights Reserved.

... Read more

POSSESSION: why you should never hand over the house keys BEFORE completion

Raymundo Larraín Nesbitt, August, 21. 2020

Marbella-based Larraín Nesbitt Abogados (LNA) has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

This blog post is the first of a two-part series dealing on possession. The second part is: POSSESSION: why you should never allow a seller to remain inthe house AFTER completion - 1st September 2020

 

By Raymundo Larraín Nesbitt
Lawyer - Abogado
21st of August 2020

Congratulations, you have found a buyer for your Spanish property! You should now instruct a lawyer to represent you in the sale, particularly if you are non-resident in Spain.

It is an exciting moment for sellers who are giddy after having waited for years on end to sell. However, some devious buyers take advantage of seller’s good faith at this moment of weakness requesting the house keys ahead of completion at the Notary. These buyers have only paid a small deposit (normally 10%), giving you all sort of plausible reasons to access the property before paying the balance.

The excuses given are all assorted (preferably tear-shedding ones that build rapport appealing to lofty values, which always work best on gentle souls):

  • “I am a single parent with young children. I need time to complete the move all by my own” (You care for young children, yes?).
  • “I only need a couple of days to move my stuff in, you can trust me, I’m best friends with so and so, you know him/her” (You can trust a friend-of-a-friend).
  • “I start a new job on Monday, I can only make the move this weekend” (I’m all stressed out, have pity on me)
  • Other.

 

The fact is that when you hand over your keys to someone, you are handing them possession over your property. This has serious legal repercussions. It awards them an array of legal rights that basically shuts you out of your own home. In order to regain access, you will have to go through a law court.

But what’s worse, they have only paid you, so far, a fraction of the sales price; they never completed things at the Notary! It could take several years of protracted litigation to have them physically evicted by bailiffs from your property. In the meantime, you’ve spent a lot of money in lawyers and legal proceedings, lost countless opportunities to sell to other legitimate buyers and your place has probably been trashed by your would-be buyer. Let alone all the stress and aggravation this has brought you and your partner.

It all boils down to possession.

Pro-tip: you should NEVER hand over the keys to your property before you sign on the dotted line of a sales deed witnessed by a Public Notary and are handed a big fat banker’s draft for the full sales price. Ever.

You are welcome.

Possession is nine-tenths of the law.”  Scottish expression.

At LNA we assist you buying, selling, or renting for a very competitive fee.

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

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

Related services available from Larraín Nesbitt Abogados

 

 Selling property related articles

 

Article originally published at IDEALISTA: Possession: why you should never hand over your house keys before completion

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.

2.020 © Raymundo Larraín Nesbitt. All Rights Reserved.

... Read more

Dual residency and hogwash

Raymundo Larraín Nesbitt, August, 11. 2020

Marbella-based Larraín Nesbitt Abogados (LNA) has over 17 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 © 2020. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Lawyer - Abogado
11th of August 2020

 

Speaking with colleagues this week on residency, the topic on dual residency came up. It would seem some financial advisers, with vested interests, are peddling the idea that UK nationals can attain the best of both worlds: dual residency.

The idea behind this is that you should sign up for Spanish residency, before the end of the Brexit Transition period, and at the same time you would continue to live and pay taxes in the United Kingdom as normal. It's the best of both worlds, as in theory you only pay tax in the UK but you override all the pesky post-Brexit passport and immigration controls into the Union.

Unfortunately, back in the real world, things don’t work out like this. Although in theory admin residency and tax residency are two separate legal concepts, in practice they go hand in hand; when you apply for Spanish (admin) residency you eventually become a Spanish tax resident, whether you want it or not. You will be taxed on your worldwide income and assets, including those in the UK.

What few people realize is that Spanish Immigration Authorities proactively monitor all successful applicants, meaning they ensure applicants continue to meet the conditions even after they have been granted residency. The implication of this is that if you file for Spanish residency, and then fly back to the UK and resume your life there, your residency permit in Spain may be withdrawn. If you no longer meet the conditions for residency and are found wanting, they will strip it off from you.

Anyone who thinks they can land a Spanish residency and then march off back to the UK and continue about their lives there as if nothing had changed is being delusional.

Bottom line, if you don’t fancy becoming tax resident in Spain, don’t sign up for Spanish residency. Attaining residency implies you live in Spain all year round, not just when it's convenient for you. And the tax implication of living in Spain all year round is that you are now regarded as tax resident.

You can’t always get what you want (well, unless you're Mick Jagger).

 

LNA has a 100% track record attaining Spanish residency.

 

At LNA we assist UK nationals to apply for Spanish residency for the first time, or renewals, for a very competitive fee. You will be assigned an in-house specialist to deal with your matter. Call or email us free of compromise. We only deal with residency permits on the Costa del Sol (Malaga province).

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

Larraín Nesbitt Abogados is a law firm specialized in residency, 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.

Immigration & Residency services available from Larraín Nesbitt Abogados

 

 Residency-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.

2.020 © Raymundo Larraín Nesbitt. All Rights Reserved.

... Read more
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