Early on in my career, I was making small talk with a notary. He told me his daughter had just graduated in Law and already had three job offers. The first one was at a prestigious law firm where they offered her a respectable €2,000/month. The second job was at a leading bank where they offered her a superb €3,000/month. And finally, she was offered by an NGO a whopping €5,000/month.

Unsurprisingly, she chose the NGO as her first job. To put this into perspective, the best student in my class, studying a joint degree in Law and Economics in Madrid, got offered that same wage working for a top US consulting firm.

In other words, the NGO was grossly overpaying a newly graduated student aged 22.

Moving on, on the 29^th of October 2024 Valencia was struck by tragedy. Devastating flash floods led to the deaths of hundreds of people, including half a dozen children. This tragedy brought out the best in people but also the worst.

Spanish people, of all walks in life, are very generous by nature. Understandably people sought to contribute to the thousands of afflicted by gifting food, warm clothing and water. Spain’s Red Cross is the country's number one NGO by a long shot, with over half a billion euros in public budget granted by the government. It remains, in most cases, as the first choice to contribute. Alas, giftors were shocked to find out the Red Cross flat out refused any food, clothes or water and would only accept money (?). This odd behaviour prompted an investigation by some inquisitive journalists.

As a result, the newspaper Gaceta.es published on the 7^th of November 2024 a scathing exposé which revealed that Spain’s Red Cross allocated over 92% of its 2023 public budget to pay staff wages, including an uber generous €4mn wage packet to its top brass! To put this into perspective, that’s more than what CEOs of medium banks get paid in Spain!

In plain English, 9 out of 10 euros given to the Spanish Red Cross by the Spanish government ended up in the pockets of its staff and (very) well-paid executives during 2023. With less than 0.80 cents actually reaching those in need. In 2023, 475 million euros (out of a €514mn public budget), or 92% of its public budget, went straight to pay their 'workforce'.

Now I don't know about you, but those numbers don't look right to me. Maybe I'm just naive, but I'd reasonably expect over 90% of all donations made to the Red Cross to go towards their self-declared charitable goals (with a reasonable 10% spent in admin costs and overheads) not the other way around. Never in my wildest dreams would I expect them to pocket almost all the money generously gifted to them. Nor would I expect the top dogs of a charity to take home a paycheck of €4 million every year. That's just ludicrous.

My advise, knowing firsthand how some NGOs work in Spain, is that before you gift ANY money to an NGO is that you first do your research and check thoroughly their annual spending activity. Demand to see a full breakdown of their company accounts (which should be audited by an independent company). If they start with the Data Protection Act BS just move on to the next.

As my gran used to say: "It doesn’t matter what people say, what matters is what they do."

Call me old-fashioned, but back in my day, people that did volunteering expected nothing in return except the occasional warm smile from those bereft. Nowadays you have cynical people driving around town in posh German cars with kids enrolled in fancy British private schools working for NGOs for a sizeable monthly paycheck!

Something has to give.  

Marbella-based Larraín Nesbitt Lawyers has over 21 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 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 © 2024. Plagiarism will be criminally prosecuted.

15th of November 2024
By Raymundo Larrain

The Golden Visa program is now confirmed to be phased out as of January 2025.

We are on the last days to file a Golden Visa residency permit.

If you have not done so already, please contact us urgently.

There is still time to file your Golden Visa.  

LNA offers this blue ribbon visa service in under 3 weeks:

Golden Visa (investor visa)

LNA has a 100% track record of attaining Spanish residency

At Larrain Nesbitt Abogados, we have assisted hundreds of non-EU nationals, and their families, to successfully attain a Spanish residency permit since 2013.

Immigration & visa services available from Larraín Nesbitt Abogados:

• Golden Visa Service (Investor Visa)
• Non-Lucrative Visa (Pensioner’s Visa)
• Lucrative Visa (Business Visa)
• EU-Family Regroupment (Marriage Visa)
• Digital Nomad Visa (Tax-free visa)
• Non-Domiciled Tax Scheme (Beckham's Rule)
• Spanish Residency permit for EU nationals

At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 07543 838 218, Spanish line (+34) 952 19 22 88, or by completing our contact form to book an appointment.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.

I have taken almost 10 days to blow off some steam before writing anything on this matter.

In today’s blog post, I’m going to analyse the actions of two men, of two Spanish presidents from the same political party, with a similar tragedy striking, but with very different outcomes.

In 1983, tragedy struck at the heart of the Basque Country. A terrible flashflood swept Bilbao threatening the lives of thousands. The then president, Socialist Mr. Felipe Gonzalez Marquez, acted decisively, as befits a statesman, immediately declaring  a National Emergency (as it is the president's prerogative), and mobilized all national resources deploying within 48 hours 10,000 men (a further 3.000 men were added over the next days), 200 vehicles, and 50 heavy machinery to clear the roads and remove the debris. This tragedy resulted in 34 dead and 5 missing.

As a sidenote, Bilbao is the capital of the Basque region, which is a politically sentive area with active separatist movements. The fact Mr. Gonzalez boldly deployed the Spanish Army within speaks volumes. To take it into perspective at the time, it's akin to a UK Primer Minister sending in thousands of British paratroopers into the IRA stronghold in the 70's, even if for all the right reasons; it's an audacious and highly controversial political move. Truly, a president with cojones who takes on the mantle of responsibility.

Actions speak more than words.

The resolute action of Mr. Gonzalez resulted in saving hundreds, possibly thousands, of lives. This is what we expect from a leader, from a statesman. And this is one – of many reasons – why Mr. Gonzalez will pass on to history as one of the finest Spanish presidents of all time.

Right, let’s fast-forward 41 years, to the 29^th of October 2024.

The Spanish government ignored all flashflood warnings from the Met Office on the 29^th of October 2024 and did nothing, nada. The flashfllood swamped dozens of Valencian towns without any prior warning, and were all caught by surprise. They were woefully unprepared for what came next.

Disaster struck, and hundreds died (214 as of today), and 93 are still reported officially missing (initial reports estimated 1,900 people missing).

What happened next is that Spain’s government, led by the Socialist president Mr. Sanchez, did nothing – nada – for 5 (five) full days and nights, leaving it all to the regional authority of Valencia which was overwhelmed (ruled by an opposing political party). The central government did not declare a State of Alarm, nor send in the Army, nor any heavy machinery to assist and rescue the survivors. Moreover, it actively blocked and thwarted any help to the stricken region of Valencia resulting in even more deaths. The Spanish government’s inaction kills.

As a result, countless deaths followed which could have been easily averted had the central government stepped in and acted.

Hundreds of villages have been left to their own devises, and it is the neighbours themselves who are cleaning up the muck and debris, even with their bare hands.

After 5 days, Mr. Sanchez had the gall to show up in a Valencian town to be photographed (!) and was pelted by mud by the neighbours amid shouts too rude to reproduce here. Two official cars were damaged, and the president himself was hit with a stick hurled at him by the gathered crowd. The government attributes these attacks to “well-organised, radical ultra-right-wing movements”. Three people were detained on the following days, and all happened to have no affiliation to any political party whatsoever, and no previous criminal record; they were simply aggrieved townsfolk of the afflicted town Mr. Sanchez visited to take pictures of himself.

Mr. Sanchez still continues to this very day (ten days after) not to call a National Emergency on what’s happened in Valencia. He has also flat out refused all international help kindly offered by multiple countries (?). Moreover, instead of bending over to release government funds to assist all the people affected and rebuild the land, he’s blackmailing the opposition to approve his 2025 budget (which would cement his prower grip over Spain for the next years) in which he deviously included Valencia's relief funds. So, if the opposition does not yield and approve his budget, it will be them who will be made to look bad.

In effect, Mr. Sanchez is ruthlessly exploiting a human tragedy that has killed hundreds of innocents, including children, for his own political gain.

These are the facts.

And now onto my personal opinion.

I have long criticised Mr. Sanchez in multiple articles and blog posts over the years for all the things he’s done. Mr. Sanchez is widely accepted as the worst president in Spain’s young democracy, even surpassing the ineptitude of his colleague Mr. Zapatero (which is quite the feat).

But after what’s transpired in Valencia over the last week, he’s upped the ante and raised his game to a whole new level of depravation. He’s de facto now become the most hated man in all of Spain - by his own demerits.

All of these deaths, all of these losses, could have been averted, or greatly mitigated, if we had a real statesman in office.

And this is why Mr. Gonzalez will pass on to history and be fondly remembered as one of the finest statesmen Spain has ever had.

Ans this is why Mr. Sanchez will pass on to history as the worst, and most despised, spineless career politician of all time; a vile man.

The whole Spanish government must be judged, found guilty, and held accountable for one of the greatest derelictions of duty in history.

Anál nathrach, orth' bháis's bethad, do chél dénmha

Marbella-based Larraín Nesbitt Lawyers has over 21 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 successfully assisting expats all over Spain. You can review here our client’s testimonials.

Actually, it’s both.

In John Boorman’s 1981 Excalibur movie, there is a part of the dialogue between Merlin and King Arthur where Merlin explains he is a dream to some, a nightmare to others. This apparent ambivalence can also be predicated on Spain’s taxation system: a dream for some, a nightmare for others.

The nightmare

If you happen to be a tax resident in Spain, and you are classified as a high earner, you will be hit with a top marginal tax rate of 50%. Unlike in other countries, in Spain to be regarded as a high earner, you only need to be making €60,000 in gross annual earnings. As from this amount, you trigger the top tax rates.

The dream

However, foreigners are in for a treat as a whole different story applies to them. Both EU and non-EU nationals can greatly benefit from very lenient tax breaks on applying for different tax regimes. I will describe both below, but it should be noted they both offer identical tax advantages.

1. EU nationals – Beckham’s Rule

EU nationals may apply for what is known as Beckham’s Rule. Over 10,000 taxpayers have benefited from it. We attain this in under 4 weeks. It offers incredible tax benefits:

• Worldwide assets & income are tax-exempt. Spanish Tax Authorities only tax you on your income derived within Spanish territory. Meaning, any other source of worldwide income is tax-exempt (just like with the popular UKs non-domiciled tax regime). Needless to say, this unique tax advantage offers a hugely attractive prospect for those taxpayers with substantial earnings, assets, and interests overseas. The only exception is any income derived abroad from working.
• Spanish income tax is capped. The first €600,000 earned from a source within Spanish territory will be taxed at a flat rate of 24% (in lieu of the standard top marginal rate of 47%). As can be surmised, even for earnings whose source is derived exclusively in Spanish territory, the tax savings are huge.
• Exempt from submitting tax return 720
• Exempt from submitting Wealth Tax
• Five years plus one. It applies on the fiscal year of relocation and on the following five years (total six years).

2.   Non-EU nationals – Digital Nomad Visa

Non-EU nationals may apply for the new Digital Nomad Visa which was approved in 2023. Over 7,000 applicants are now paying very few taxes thanks to the DNV. This visa has associated identical tax advantages to the ones listed above for Beckham’s Rule. We can attain this visa in under 3 weeks.

Conclusion

Fortunately, you don’t need to be King Arthur to pull out Excalibur from an anvil to pay less taxes in Spain.

All you need is to call us today and apply for either Beckham’s Rule, or for a Digital Nomad Visa and you are all set; paying fewer taxes, or none at all.

If you don't want to pay high taxes, don't speak to Merlin, speak to Larrain. We'll work the magic. 

At LNA we offer you both services:

• Beckham’s Rule (Non-Domiciled tax regime)
• Digital Nomad Visa (tax-free visa)

LNA has a 100% track record of attaining Spanish residency

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience. We assist clients buying, selling, or renting properties in Spain. We are specialized in visas and taxation. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

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 will result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.

Raymundo Larraín looks at Malaga’s highlights as a place to live, visit, and invest.

16^th of September 2024

I continue today with my running series on top places to buy and live in Spain. You can find older entries on this series scrolling down below. These impromptu light-hearted guides are not meant to be exhaustive; they are just there as a lighthouse to shed light on an area’s main highlights and landmarks.

As a quick disclaimer, I need to disclose I was born in Malaga. Understandably, I’ll indulge in poetic licence in some sections.

Introduction

Malaka was founded in 770 BC as a Phoenician outpost by merchants originating from the fabled city of Tyre. Scholars think its name means ‘queen’, and it was dedicated to the Eastern deity Astarte (also known by the Babylonians as Ishtar, an Anunnaki Goddess of war and sexual love). The city was built on a bay, which offered natural shelter against the elements, making it an ideal spot to build a harbour and moor ships. The colony manufactured a popular fish sauce known as Garum (the ketchup of the ancient world) and minted coins dedicated to its goddess.

Centuries after, it would go on to be ruled by Carthage, and then by the Roman Republic in 218 BC which renamed it Malaca. After the fall of the Western Roman Empire, Visigoths took over. In the eighth century, Moors from across the strait invaded and M?laqah fell under Islamic rule over the next eight centuries. Malaga was ‘liberated’ in 1487 by the Catholic Kings forming part of the unified Kingdom of Spain until our present day.

Malaga is the second most populated city in Andalusia after Seville. It has become Andalusia’s economic powerhouse, and it is home to other well-known cities such as Marbella (Andalusia’s tourist flagship), Mijas, Fuengirola, Estepona, Ronda, Benahavis, Benalmadena, etc.

Malaga is the capital city of the region bearing its namesake and is the administrative centre of the Costa del Sol. Malagueños are popularly referred to as boquerones (a tiny fish).

Malaga, culture capital of the Costa del Sol

As can be surmised from the introduction, Malaga is an eclectic assortment of different Mediterranean cultures. Each of these civilisations left its unique footprint, building what they believed in, creating a vibrant city that exudes culture and inspires us all.

Its vast cultural heritage spans from the Picasso Museum, Pompidou Museum, Carmen Thyssen Museum, Saint Petersburg’s Russian Museum, the bullring to a slew of glam theatres, such as the trendy Teatro del Soho (run by Hollywood actor Antonio Banderas); all give it a lustre of a cosmopolitan city. But if we dig deeper into its historic roots, history buffs will get lost in its Roman and Carthaginian ruins, Augustus’ two-millennia-old open air amphitheatre, its imposing Moorish Citadel (Ciudadela) perched high atop the city walls with commanding views overlooking the bay and adjacent to sweetly scented gardens.

The magnificent architecture is spearheaded by its iconic lopsided cathedral (La Manquita), the only one in the world with only one tower. Malaga’s Town Hall and the Justice Palace are also worth noting for their beauty and magnificence. The scenic English merchant district (Paseo de Reding), with its elegant lavish nineteenth-century mansions and embellished doors, has been the mute witness of countless romances through time.

I’ve collated what I believe are the main museums, but there are in fact many more:

• Picasso Museum: It is altogether fitting and proper that Malaga hosts one of the largest art collections in the world dedicated to its most universal son, Picasso. Located in Buenavista Palace (a gorgeous 450 year-old palace), it exhibits 285 works from the artist generously donated by his family. The works cover his Pink and Blue Periods as well as the Cubist Movement.
• Carmen Thyssen Museum: Malaga-born ‘Tita’ Cervera, Patron of the Arts, generously donated a large number of paintings that drew from her husband’s vast art collection. It’s located in a nineteenth-century palace. In it, you will find a wide assortment of paintings, ranging from Old Masters to Spanish Masters, such as Zurbarán, Diego de Regoyos and Julio Romero de Torres. It also houses interesting temporary exhibits borrowed from other reputed museums.
• Saint Petersburg’s Museum: Located at the beautiful Royal Tobacco Factory, it’s the first Western offshoot of the much-revered Saint Peterburg’s Museum of the Russian Federation. It regularly borrows exhibits from its mother museum.
• Centre Pompidou Malaga: Is an offshoot of Paris’ George Pompidou art museum. It can be found in Malaga’s beautiful port. It features modern art exhibits which are rotated regularly.
• Malaga Museum: Located at the heart of Malaga, in another beautiful colonial-style palace (how many palaces does this city have?), it exhibits Phoenician artifacts, Roman relics and Moorish treasures. Its main highlights include beautifully preserved mosaics, intricate pottery, and a fascinating array of tools. Interactive elements and multimedia presentations allow visitors to actively engage with the past creating a personalised experience. Ideal for kids and history buffs.
• OXO Videogame Museum: Located in the old town centre, it occupies a building several storeys high, and mostly displays hardware. Its software exhibits are somewhat limited (hopefully they will be greatly expanded through donations). From retro games, such as 70’s Pong and the 80s Pac-Man, to modern classics such as Brian Reynolds’s Alpha Centauri (we must dissent) and Sid Meier’s Civilization (one more turn). Highly recommended for children and for, erm, adults young at heart.

Inset photo: Caesar Augustus’ well-preserved two-thousand-year-old amphitheatre, possibly the greatest Roman Emperor

The first recorded tourist: Hans Christian Andersen

Its first-ever recorded tourist was romantic Danish writer Hans Christian Andersen, who arrived by boat in October 1862 and quickly fell in love with its Moorish mystique. But rather than read my boring drivel on his exploits, let’s hear it from him:

“The stars were beginning to shine, the crowd increased beneath; the promenaders went under the trees on the level ground; riders and persons driving kept the paved road.  A band of musicians were playing airs from “Norma”; my thoughts turned into verse, on the sweet southern evening.”

To commemorate his visit, Malaga erected a statue in his honour that can now be visited at Plaza de la Marina, next to the beach. Andersen seems to be looking out towards the sea, mumbling something about a mermaid…

                                                         Say, is that a duckling poking out of Andersen’s briefcase?

Malaga, cradle of artists and intellectuals

During its twenty-eight hundred years of history, Malaga has been the birthplace of several renowned figures, ranging from artists to writers, and everything in between. I’ve greatly abridged the list to name the main ones.

To name a few, and in no particular order:

Antonio Banderas (Hollywood actor, producer, businessman, and city benefactor), Carmen ‘Tita’ Cervera (Baroness Thyssen-Bornemisza, socialite, Patron of the Arts, and city benefactor), Francisco Manuel de la Torre Prados (arguably Malaga’s best major who transformed the city and its port, paving the way for the future), José Barea Tejeiro (eminent economist, economics university professor at Madrid’s UAM), María Barranco (actress), Millie Bobby Brown (Hollywood actress), Terelu Campos (journalist, tv presenter, and showwoman), Antonio Cánovas del Castillo (politician and historian who fostered Spain’s first democracy), Francisco de Paula de Cea Bermúdez y Buzo (politician and diplomat), Remedios Cervantes (model, actress, and businesswoman), Abu El-Ola (Al-Andalus governor), María Eloy-García (poet), Ibn Gabirol (philosopher), Bernardo de Gálvez y Madrid (career soldier who distinguished himself in the US War of Independence), Victoria Kent (outstanding Republican lawyer and politician), Antonio Molina (singer and patriarch of an artistic family saga which spawned several renowned artists), Dani Rovira (actor), María Barranco (actress), Pepa Flores (artistic name Marisol, child prodigy, singer and actress), Amparo Muñoz (model and actress), Antonio Cánovas del Castillo (politician and historian), María Zambrano (distinguished philosopher and writer), and Pablo Ruiz Picasso (artist).

                                                                                                Remedios Cervantes, Miss Spain

Malaga’s Port

Ironically for a port city, one of the newest areas in town, which has undergone extensive changes over the last two decades, is precisely its port which had been long neglected. As in Andersen’s fairy tale, The Ugly Duckling, the port transformed from ugly (a dark, dirty and gritty industrial hub) to a beautiful swan. It is now one of Malaga’s highlights.

The place now has two walkways full of open-air restaurants and colourful terraces to chill out al fresco in good company. Large cruise ships, that sail all over the Mediterranean Sea, dock here and its passengers walk the gorgeous port boulevard. It also hosts the George Pompidou Museum which always has modern art and monthly exhibitions on display. Beautiful views of the moored ships and yachts are guaranteed at dusk. Lads, if you want to impress a lass, this is the place; you’re welcome.

Moorish Citadel – Alcazaba of Málaga

Nestled high in the Gibralfaro hill, overlooking the open bay below and the dashing blue waters, lies the Alcazaba (AL-qasbah, in Arabic fortification in a walled town). It is an impressive Moorish fortress that protects the city. In the event of a city raid, the citizens would flock to it and the doors would be shut. It also served a dual purpose as the residence of the Moorish governor. It’s worth your while to take a short trek (40 minutes) up the hill to take in those gorgeous city views that await you (the best in town). You will not be disappointed.

La Manquita – Malaga’s cathedral

Its construction spanned from the 16^th to the 18^th century. To finance its outrageous cost, a levy was imposed on each ship which docked and unloaded its cargo for over three hundred years! The cathedral was designed to have two majestic towers. However, as mentioned above, it only features one, hence its Spanish nickname. The people of Malaga decided to gift the money towards the second tower to thirteen struggling colonies in their War for Independence against a mighty empire. A very clever and resourceful envoy, by the name of Benjamin, managed to smooth talk and convince our townsfolk that it was in their best interests to divert the tower funds to his colonial cause. And so, to this very day, the cathedral remains with only one tower in remembrance of the solidarity and friendship with those fledgling overseas colonies which, over time, grew and did very well for themselves. A pungent reminder that freedom and independence come at a price, lest we forget.

Easter Week

Easter Week, Semana Santa in Spanish, is one of the city’s major highlights in the calendar. Religious fervour floods its streets and takes grip over its inhabitants. Balconies and main roads are decked up in red, men and women dress up in gala, processions abound, drums beat with a rhythmic pattern, and the sweet smell of burning incense gently drifts through the air of its alleyways taking us back in time. Special mention should be made to the Costaleros. These are group of devoted men who train together and carry in synchronicity the religious thrones dedicated to the Virgin Mary and our Lord Jesus. These often weigh in excess of 4 tonnes. Depending on the weight of the thrones, groups vary from 60 to as much as 250 men. They are divided into different associations (cofradias) and compete to outdo one another in their religious fervour. Women dress up in elegant mantillas (a shawl that covers head and shoulders). It’s quite the sight.

Mercado de Aterazanas

This market dates back to the 14^th century. It’s one of the most important shopping centres (not a modern one!) where visitors come in every day looking for tapas and fresh “pescaíto” (typical small fried fish). Its iconic architecture is from the nineteenth century. Fresh produce is brought in every day from all surrounding villages.

Alameda Principal

Commonly known as La Alameda, is the main avenue that runs through Malaga City. The avenue is flanked on both sides by centuries-old trees, whose exotic seeds were brought by sailors over the eras from all the far-flung corners of the Spanish Empire. These majestic trees, dot Malaga’s sprawling avenue and parks, providing shade with a lush green canopy encompassed by the soothing chirping of birds.

Tapas, restaurants, and food

Honestly, I don’t really like giving publicity in these articles to privately owned businesses. However, as everyone always asks for a great and genuine place for tapas, I feel compelled to throw in some names. In no particular order, my favs would be El Pimpi, Picasso Bar Tapas, and Casa Lola. And for meat lovers, La Pampa grill.

Another place you should check out is the Casa del Turron 1880, which makes and sells turrones (a Spanish delicacy that is meant for Christmas).

Regarding drinking, given Malaga’s always warm temperatures, I recommend trying out local beers, such as Victoria and San Miguel.  Your best allies against a sweltering heat.

And to close, you cannot leave town without trying homemade almendras garrapiñadas (impossible to pronounce, they are candied almonds), featured in the photo below. You can thank me later.

Calle Marqués de Larios

Named after the marquis that made it possible, it is the shopping street for excellence with trendy designer boutiques. The street is always bustling with wide-eyed tourists, locals and live street performers. The street also doubles for major events, such as in Easter Week, when they close it down and deck it up in red for processions. It also happens to be the location with the nicest coffee shop in town (Lepanto) and homemade ice cream (Casa Miras). I recommend visiting the old city quarter, which is adjacent to the cathedral. There you will find many interesting and picturesque shops and sights. Malaga is a very safe place to wander about.

Parque Tecnológico de Málaga (PTA)

To close, I have written extensively about the city’s past, but I also wanted to mention a line or two about the bright future that lies ahead for Malaga, resting upon the shoulders of its youth. A symbol of Malaga’s technological ingenuity is its PTA, which is an impressive technology hub that is home to over 3,000 technological start-ups. Malaga’s university curates the PTA, supplying its small caps with a steady stream of highly qualified engineers, programmers, and IT designers. Some of the companies are becoming so prominent, they have drawn the attention of international foreign venture capitalists. For example, Swedish EQT Group recently bought for €300mn a Malaga technological startup (Freepik) that had created – all by itself – a market of over 40mn consumers! Some would even argue that Malaga is poised to become the California of Southern Europe.

Conclusion

Malaga is a crucible of cultures, a conflux that laces Western and Eastern influences, offering a rich tapestry of history and arts that shaped it as we know it. Malaga’s vast cultural heritage, spanning millennia, is a legacy of commingled cultures that attracts millions of tourists every year

Unlike some of its glitzier neighbour cities up and down the coast, which focus primarily on beach and sun tourism, Malaga lives and breathes for culture, standing the test of time.

Albeit what ultimately defines Malaga best, and makes it truly unique, are its people. Malagueños are welcoming people with a passion for life.

In a recent poll, Malaga was voted by expats as the world’s second-best city to live & work.

Malaga, passion for life.

Málaga, tierra de pasión

                                                                   Portrait of a young Picasso, arguably Spain’s most iconic artist

“La acción es la clave fundamental de todo éxito.” – Pablo Picasso.

Loosely translated as: “Action is the key to success“.

Pablo Ruiz Picasso (1881 – 1973). Málaga-born, he was a passionate Spanish painter, sculptor, printmaker, ceramicist, stage designer, poet, and playwright who spent most of his adult life in France. He was an outspoken Communist with strong political views who self-exiled to France as he did not want to live under the yoke of Franco’s dictatorship. Regarded as one of the most influential artists of the 20th century, he is credited for co-founding the Cubist movement. A child prodigy, Picasso was a multifaceted artist who achieved universal renown and immense fortune for his revolutionary artistic accomplishments, becoming one of the best-known figures in 20th-century art. He was a prolific artist who left behind thousands of works of art. Perhaps his most iconic piece was the 1937 Guernica painting which depicts the horrors of war and uncannily foreshadowed the dark days of WWII (exhibited in Madrid, Centro de Arte Reina Sofía). Picasso was one-of-a-kind; a towering artistic figure who cast a long shadow over every other artist that followed in his wake. Picasso is Malaga’s most universal son.

Other entries in this running series:

• Costa del Sol: your dream home in paradise – 8^th April 2022
• Sotogrande, the pearl of Cadiz – 3^rd June 2022
• Barcelona, the beautiful – 8^th November 2022
• Madrid, capital splendour – 21^st March 2023
• Mallorca: Heaven on Earth – 8^th June 2023
• Granada, the Last Kingdom – 12^th October 2023
• Seville, a dream city – 21^st March 2024
• Malaga, passion for life – 16^th September 2024

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. Ní neart go cur le chéile. Voluntas omnia vincit.

2.024 © Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 21 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 successfully assisting expats all over Spain. You can review here our client’s testimonials.

Back in 2021, in the midst of the global COVID pandemic, when many panicked and saw the market as lost, I saw an opportunity and published an article (Malaga, Europe's Southern California) where I ventured that after the pandemic a strong property boom would follow that would last several years. Particularly in the region of Malaga, we would witness a strong growth for all the reasons I collated in my article.

Four years on, we’ve witnessed an outstanding rise in property prices due to an unabated demand. Real estate is appreciating by two digits a year in major Spanish cities and selected coastal areas, such as Malaga.

In today’s El Mundo newspaper, we read an article featuring Spain’s ongoing property boom 4 years on.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience. We assist clients buying, selling, or renting properties in Spain. We are specialized in visas and residency permits. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

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 will result in criminal prosecution. Ní neart go cur le chéile. VOV.

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2024 © Raymundo Larraín Nesbitt. All Rights Reserved.

Lawyer Raymundo Larrain analyses the main points of Spain's new Housing Law.

Marbella-based Larraín Nesbitt Lawyers has over 21 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 successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2024. Plagiarism will be criminally prosecuted.

31^st of July 2024

This guide has been greatly abridged, collating only what I deem are the major changes and improvements upon existing housing regulations. I have purposely left out minor changes whose impact is negligible.

Several legal and financial concepts are assumed to be known by the reader, in the wake of previous rental and housing regulations dating back several decades.

It should be noted that several of the below changes heavily impact - and even reshape – our understanding of private property and a free market economy.

As multiple articles and blog posts explain, the Spanish government relentlessly pursues a lofty goal (reduce rental prices and increase the number of properties on offer to keep inflation in check). This self-declared goal pervades all housing and rental policies.

However, it does this at the expense of other people’s private property.

I. Major changes

• Rental updates are no longer tied to the Consumer Price Index (CPI).
• Stressed areas
• Large property owners
• Unrented property over a 5-year period.
• Rental renewals extended duration.
• Landlord to pay for agency fees and associated rental contractual expenses.
• Contractual exclusion of Housing Law is banned.
• Land earmarked for social development.
• Improvements on tenant evictions.

II. Improvements

1. Landlord tax incentives
2. ‘Mobilisation’ of empty housing.
3. Public housing

I. Major changes

• Rental updates are no longer tied to the Consumer Price Index (CPI). Traditionally, Spanish rental contracts were updated annually in line with the evolution of the CPI. Following this new law, this is no longer the case. The Spanish Government capped all rental increases during 2022 and 2023 to 2% and increased the cap to 3% during 2024 (until the 31^st of December 2024). As of 2025, the National Bureau of Statistics (INE) will devise and implement a new curated index which will become the new benchmark for all rental contracts, which will be well below the standard CPI. Again, to keep inflation at bay.
• Stressed areas (zonas tensionadas). The law defines certain areas as being under duress due to tight rental demand. Such areas (purportedly) warrant the protection (read price intervention) of tenants by way of capping rental prices so they do not get out of hand. Town halls will issue ‘curated’ rental price lists for these areas. In plain English, landlords are forced to rent at the price dictated by their town halls under threat of heavy fines for non-compliance.
• Large property owners (grandes tenedores). Under previous rental laws, great landlords were defined as those renting out 10 properties, or more. Now, under this new law, the number is reduced to 5 properties or with a built surface of 1,500 m². Being labelled as ‘great landlord’ has associated severe legal, regulatory, and financial consequences, besides additional red tape i.e. a specific rental update index is applied to great landlords, as opposed to the standard rental benchmark in force as of 2025.
• Unrented property over a 5-year period. In the case of properties which have remained unleased over the last 5 years, the new price index (of 2025) will be applied to them.
• Rental renewals extended duration.

This point takes for granted the reader fully understands the mechanics of silent renewals in long-term rental contracts.

1. Physical landlords: for vulnerable tenants, up to 9 years. For vulnerable tenants (in a stressed area) up to 11 years.
2. Legal landlords: for vulnerable tenants, up to 11 years. For vulnerable tenants (in a stressed area) up to 13 years.

• Landlord to pay for agency fees and associated rental contractual expenses. Under the previous regulation from March 2019, only legal persons acting as landlords had to pay for the real estate agency fees and all associated contract costs. However, under this new law, now ALL landlords (whether physical or legal persons) have to pay for the agent’s commission (which cannot be passed on to the tenant) plus the associated expenses to rent a property.
• Contractual exclusion of Housing Law is banned. In some particular aspects, parties were free to override the existing Tenancy Act of 29/1994 (LAU). This is no longer the case. Going forward, expenses (such as community fees, rubbish charges or local tax) cannot be used to increase the rental (to deviously circumvent the government-imposed 3% cap on rental updates, Heaven forbid).
• Land earmarked for social development. Under previous planning laws, 30% of developed land was allocated to subsidized housing. This has been increased to 40% on new developments (new builds) and from 10 to 20% on renovated land (resales).
• Improvements in tenant evictions. A host of new measures are enacted to protect tenants furthermore. I.e. 2-year extensions to vulnerable tenants or mortgage-related evictions are now banned until the 15^th of May 2028. Meaning lenders may no longer foreclose on a property when vulnerable borrowers fall into arrears. Regional Authorities can put in motion alternative accommodation for evicted tenants.

II. Improvements

1. Landlord tax incentives

Amendments to the IRPF (IRNR) and Corporate Tax (IS).

• Rentals in ‘stressed areas’: up to 90% tax allowances.
• Rentals to young tenants (aged 18 to 35): 70% tax allowance.
• Renovation works (i.e. EU Energy Performance Certificate compliant, refurbishments or extensions): 60% tax allowance providing the following points are met:

1. Renovation works are for 10%, or more, of property valuation
2. Renovation work undertaken over the previous 2 years

• Rental increase capped at 10% (as opposed to the standard 3% rental increase for 2024)

2. ‘Mobilisation’ of empty housing.

Town halls are now empowered to apply ‘tax incentives’ (read coercion) on owners to foster the rental of empty housing. This is done to alleviate the sharp increase in rental prices. It is hoped that on increasing the housing stock, it will bring down rental prices.

In plain English, it’s a stick-and-carrot housing policy; if you rent, you have nice tax allowances, if you do not, you get slapped with additional tax.

• Town halls may levy on a sliding scale up to 150% IBI surcharge on empty property over the previous 2 years for landlords with 4 properties.
• Town halls may levy on a sliding scale up to 100% IBI surcharge on empty property over the previous 3 years.
• Town halls may levy on a sliding scale up to 50% IBI surcharge for landlords with 2, or more, properties in the same municipality.

3. Public housing

Before, certain properties were earmarked as social housing (viviendas de protección official, or VPO). The procedure to remove this protected status - so they could be sold as freehold property after a number of years had elapsed - was winded and protracted (basically because a legal change to freehold translated into a great appreciation in value fuelling property speculation).

Going forward, this law bans the legal re-classification of subsidised property (meaning they will remain as social housing indefinitely) and in other specific cases, raises the protection up to 30 years. Spain’s stock of social housing is significantly under par (1.6%) by rapport to other neighbouring EU Member States (10%). The government wants to maintain, and even gradually increase, the stock of available public housing.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

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 will result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 21 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 successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2024. Plagiarism will be criminally prosecuted.

15^th of July 2024

IDEALISTA reports on its latest metrics that rentals on offer in Barcelona have plummeted by 14%. The same story applies to the remainder of the region of Catalonia.

We have repeatedly been warning since 2021, that the approval of Spain’s new Housing Law of 2023 was going to have the opposite effect that was sought by the Spanish government.

Instead of sharp falls in rental prices, landlords – afraid of the interventionism in the new housing law – massively pulled out their properties from the rental market causing a sharp spike in rental prices (fewer offers available and an ever-increasing demand results in higher rental prices).

This is exactly the opposite effect that was desired by lawmakers when they enacted the new Housing Act.

Unfortunately, as explained in multiple of our articles and blog posts, this was highly foreseeable.

In effect, Spain’s new Housing Law has devastated the rental market, driving rental prices sharply up to all-new highs to the detriment of weak social collectives that (desperately) crave protection from Authorities against unabating rental prices.

The road to hell is paved with good intentions.

Available services from LNA:

• Holiday Rental Accounting Service (HRAS)
• Rentals (contract drafting)
• Contracts (read & review)

At Larrain Nesbitt Abogados (LNA) we have over 21 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line  (+34) 952 19 22 88, or by completing our contact form to book an appointment.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.