This is the LEXLAND team who led the operation: Natalia Iturbe, Cristina Campo and John Fegan.

If you feel familiar with any of the above,  you should know that the Supreme Court has ruled in your favor by establishing jurisprudence in this regard. The judgment of the Supreme Court obliges banks to refund their customers the total amount of money paid, plus its interests for property deposit concept, which is all deposits received for those properties bought off plan that were not built nor delivered. Banks can not avoid their responsibility of safeguarding the deposits received from the property developers.

Banks are Obliged to Execute the Property Deposit Refund

The Court’s ruling fails in favor of the buyers of non-built or undelivered real estate developments who have initiated or will initiate legal action against banks for their responsibility for property developers.  The Law that came into effect obliges both banks and property developers to assume their responsibility for the loss of all deposits given as payment for the purchase of an off plan property.

The new Law protects buyers and penalizes banks and property developers that had previously been discharged of their responsibility, on the money given for the purchasing not only flats but also duplex, villas, and houses, especially during the real estate bubble. During that period, many property developers filed for bankruptcy, leaving buyers exposed. Those disadvantaged buyers had to start claims that took long periods of time, therefore; many gave up. Now you can claim against the bank related to the property developer and get your property deposit refund.

At Lexland we have a team of experts specialized in this matter. If you have filed a claim against property developers for undelivered properties unsuccessfully or if you wish to start a claim in this regard, we can assist you. We can go through your case completely free of charge. If your case is eligible for the claim, we offer our “No Win, No Fee” rate.

Imposing a tax over a transaction where there has been no profit is ILLEGAL.

You can start claiming the plusvalia tax refund now!

Until now, the vendor had to pay the plusvalia tax, even though the sale of the property resulted in a loss. The loss occurred because the sale value of the property was lower than the purchase price of it. The reason why the vendor irrespective of the selling price has had to pay this tax is that for tax calculations purposes the councils have considered the cadastral value of the property or dwelling tax (IBI), which is calculated over the value of the plot, instead of the market value of the property.

For example, before the court ruling, let’s assume that in 2005 Mary bought a property located in Madrid and paid 150.000€ for it. In 2017, Mary has sold that property for 120.000€. In addition, the cadastral value of the property is 80.000€. Although Mary has lost 30.000€ in the transaction, because the city council sets the plusvalia tax based on the cadastral value of the property, the years of ownership multiplied by two coefficients, she must pay approximately 7.500€ of plusvalia tax to the city council of Madrid.

A total of 550,000 properties could be affected. Yours could be one of them!

The judgment of the court only extends to the habitual dwellings. In addition, individuals who have been affected by donations payments and foreclosures of mortgages can also claim the refunding of the plusvalia tax. Furthermore, a “technical test” shall be carried out by an independent expert demonstrating the loss in the value of the property.

What are the requirements for claiming the plusvalia tax refund?

There are some requirements that you must meet to claim the refund of the plusvalia tax:

• The vendor must have lost money in the transaction, meaning that the selling price was lower than the purchasing price.
• It has not been more than four years since the transmission, otherwise, it will be prescribed.
• The settlement of the tax should not be final.

 What are the steps for claiming the plusvalia tax refund?

1. After the payment of the plusvalia tax, a letter requesting for rectification and refund of undue income must be filed to the city council that has collected the tax, stating the amount paid.
2. In the case of refusal, an appeal must be made for a replacement and then an economic-administrative complaint.
3. The last step is to initiate the judicial procedure. The deadline for response is two months.

At Lexland Lawyers we have a team of experts in this area. Are you an affected? If you have paid the municipal plusvalia tax in spite of having lost money in the sale of your property, we can help you to get your money refunded. We will study your case completely free of charge. If your case is eligible to start the legal process we offer our “no win, no fee” fee, with which you will only have to pay when we win your case.

Starting on Monday, 23^rd January 2017, consumers can address floor clause claims to their banks. “Once received, the bank must send the consumer the calculation of the amount to be returned including the interest, or alternatively the reasons for considering the claim not appropriate. After receiving the bank communication, the consumer must express his/her agreement with the calculation for the bank to return the money back. The entire process will be done in a maximum period of three months.

Can I address a legal claim to the bank if my mortgage had a floor clause but is amortized?

Yes. Even if the mortgage is already fully paid, the Decree-Law allows consumers who had an abusive floor clause to address a legal claim. The term of the statute of limitations is 15 years, although each case should be consulted.

If I have been paid the floor clause since May 2013, can I claim it from 2009?

Yes, but the Government admits that it is the bank that decides whether or not to return what has been collected.

The bank notifies me that I have a floor clause. Does that mean I will receive my money back?

No. The Government obliges all banks to “ensure that the system is known by all consumers with floor clauses in their contracts”. However, it clarifies that the calculation of the amount to be returned will be done only for those consumers considered eligible.  As for the rest of consumers, banks will notify the existence of the floor clause and “the reasons for considering the complaint not appropriate”.

If the bank is not returning my money back, should it provide me with the calculation of how much I have been charged with the floor clause?

No. The latest Decree-Law wording establishes that if the bank is not going to return the money back, it is not obliged to make the calculation of what was collected with the floor clause. The bank should only explain why it considers the clause is not opaque.

What are the consequences of initiating a legal claim to the bank?

According to the Decree, “the consumer may decide to go to court directly, but once the extrajudicial proceeding has been initiated and until it has been resolved, the parties may not exercise any alternative judicial or extrajudicial action in relation to the same claim”.

A Spanish Supreme Court judgment made last year means that for those who lost their deposits on off plan property they can now make a claim for the lost money in full.

Way back in the late 1960s Spain was changing, people were moving from villages and towns to the cities in search of better jobs and a higher standard of living. The villages and towns ran on a rural economy, with farming the most popular and fruitful work, but as the population began to increase there was a demand for more jobs and better conditions. Villagers therefore began moving to the bigger cities in vast numbers.

If you lost your deposit in these circumstances, then you can make a claim for the full amount of the deposit

To cope with this there was a mini construction boom financed mostly by buyers who paid a deposit on properties which were still in the planning stages, hence “off plan”. The government at the time passed a law to protect buyers by requiring developers and banks to protect the deposits in escrow, or protected accounts. The idea was that the buyer paid the developer, who put the money in an escrow account, against which the bank would lend funds to build the property.

Once completed the money in escrow should be transferred to the bank, if the property was not completed the buyer’s deposits were to be returned by the bank. This reduced any risk of the developer going bust and losing the deposits. In effect the Bank, should by law, guarantee the buyers deposit.

Regrettably in many cases this law was either studiously ignored, or simply not honoured by the banks. This was the same until 2015 when the case was looked at again by the Spanish Supreme Court, when it was asked to clarify the position. The Courts judgment was that Developers and Banks are jointly and severally liable to protect deposits paid on un built projects. The developers, said the court, are obliged to protect the full amount of the deposit and even if they fail to do so, the bank must.

For consumers and especially those who lost their money, this is the green light not just to make a claim, but to recover the deposits.

I lost my deposit on an off-plan property in Spain, what should I do?

At Lexland we have a team of experts ready to assist with this matter, once we have examined your case and documents for free, we can offer a “No Win, No Fee” arrangement on claiming you back your deposit. We will organise a free initial consultation so your questions can be answered, and give you access to our team of specialists, to ensure that your claim is in the best hands.

 The necessary requirements to comply with the new law are as follow:

It is vitally important that paperwork relating to guests staying is stored and available upon request by the inspection team if required. Owners must also submit the details of their guests to the Guardia Civil, normally within 24-48 hours of check in. The Owner of the property is responsible for implementing and continuing to meet the standards set out in the Law.

1.      Holiday Property Registration

In order to start with the registration, you will need the following documentation:

• Licence of First Occupation
• NIE

 What if I don’t have my licence of first occupation?

A licence of first occupation was given when your house was first built, if you do not have a copy you should speak with the Ayuntamiento in your local area. Lexland Lawyers can help with this so please contact us.

New holiday rental law in Andalucía

2. Getting the Property Ready

Ensure Licence, Unique Reference Number and Rules are clearly displayed along with emergency contact telephone for host and rules of the house, including information about pets, check in and check out times. You should have a First Aid Kit, with the location clearly displayed.

 Cleaning Service

You must have a cleaning service, you or a cleaner that cleans the house before and after each guest´s stay. You should also offer a cleaning service for during the guests stay, but can request

a charge for this. We recommend a weekly cleaning schedule to show how regularly this is done.

Bedrooms

Ensure each bedroom has direct outside patio or ventilation and shutters/curtains or blinds which darken the room. Ensure each bedroom is also equipped with fixed air, capable of cooling the room between May and September, and heaters between September and May. You must have a minimum of two sets of clean bed linen per guest.

Kitchen

Ensure the kitchen is fully equipped with a cooker, sink, hot water, cooking utensils and enough bowls, plates, cups, glasses, and cutlery for your maximum amount of guests. We suggest you always add extra. The Kitchen should have a fire extinguisher or a fire blanket, and the house should also have one additional one.

3. Procedure when receiving guests – New rental property registration

You must take a copy of the Identification Document of each guest over 16 years old. A copy of the document must be signed by the guest and submitted to the Local Guardia Civil within 48 hours. It must also be held on site for at least one year in case of inspection.

Guests must have a copy of the booking contract and an invoice.

Registering with the Local Guardia Civil

A copy of the identification and the cover sheet must be delivered to the Local Guardia Civil usually within 48 hours of the Guests arrival, but you should check with your local Guardia when you register there.

Contacting You

The guest must have a number on which he can reach you or your representative 24 hours a day during his stay. This must be displayed clearly in the house, and given to the guests on arrival.

Your Booking Contract

You must provide each guest with a booking contract that contains the details of both parties, contact details, the price of the stay, the dates of the stay, and the payment methods used. You must also show how any deposit was received.

Your advertised price, must be all inclusive of water, electricity, cleaning and bedding. If guests book your accommodation through the Internet, then the booking terms will be whichever you have chosen with your agent.

More questions about how to register your holiday property in Junta de Andalucia? Contact Lexland Lawyers, our experts will be more than happy to help.

At present, it is estimated that around 2,500,000 people affected by floor rate clauses that could fall under the concept of unfair terms and lack of transparency under 9th May 2013 Supreme Court ruling interpretation. Given the statistics, from the 2.5 million affected, approximately 200,000 are foreigners, the majority of whom are nationals of Sweden, France and the UK. Those affected foreigners have the right to not only claim the money back, but also get a reduction on their mortgage interest.

The Spanish banks are now offering their clients the chance to eliminate the floor clause too, however, once the client has voluntarily removed it, he will not be eligible to reclaim the overpaid amounts anymore which means they would lose the opportunity to recover an average of €15,000 compensation rate.

If you think you may be a victim of the unfair clause, you should not hesitate to contact Lexland Lawyers to revise your mortgage loan agreement for free in order to identify the mentioned clause.

In case you are entitled to compensation, we could formalize the claim against the bank at no cost for you.  With a 99% success rate, we can say with some certainty that you will be in good hands to claim back every euro you have overpaid.

Most of the mortgages taken out before 2013 contain several abusive clauses, like for example, the so-called floor clause.

WHAT EXACTLY HAPPENED?

First of all, the Spanish Supreme Court has ruled that the interest rate floor clause can be declared abusive if the client/consumer was not duly informed about its content and implications, in a clear, transparent and comprehensive way, before signing the mortgage contract at the Notary.

In September 2013, the Supreme Court clarified a judgment delivered in May 2013, declaring floor clauses null and void if they breach the levels of transparency demanded by the European Consumer Directive. The problem is that if the floor clause is too high and the Euribor rate goes down, no matter how low the Euribor might be, the mortgage payments will never go down below the threshold of the floor clause.

HOW TO PROCEED?

To find out if your mortgage contains an abusive clause (floor clause or similar) you will need to ask your bank for a copy of the mortgage contract (mortgage deed) signed before the Notary. If the bank refuses to give a copy to you, remember that you can actually ask for a certified copy or a “copia simple” directly from the Notary where you signed the Title Deed for acquisition of the house. Once that you have obtained the copy, please forward it to us and we will review the mortgage for free.

LEXLAND CAN HELP

In conclusion, if you think that your mortgage might be affected by abusive null and void clauses, as a preliminary step, please do not hesitate to contact us for further advice. Never sign any new novation agreement or a brand new mortgage with the bank without consulting with a legal professional expert like Lexland. A simple consultation will save you from a lot of hazardous legal problems later on!

All the updates introduced for the 2015 income tax return are applicable by the most recent tax reform of Law 26/2014 of 27 November, amending the Income Tax of Individuals, except the provisions for subscription rights and shares of listed companies, whose direct taxation as capital gain is deferred to January 1, 2017.

In the declaration of income tax for 2015 one can find new sections for the capital gains due to the change of residency outside of Spanish territory (Exit Tax) and for the capital gains for reinvestment in annuities.

When should I present the income tax return for 2015?

Below we indicate the most important dates for the annual income tax declaration for 2015:

• From 6^th of April until 30^th of June, 2016: The taxpayers are able to obtain the draft return and/or tax information. This may be done electronically, either via the Internet or by telephone from aforementioned date. Furthermore, it is also possible to electronically submit the tax return -Model 100 – via the Internet (Start of online draft/return.)
• From 10^th of May until 30^th of June, 2016: the start of the campaign delayed if the draft is confirmed, or the tax return is filed, by other means other than the electronic.
• From 4^th until 29^th of May, 2016: Possibility to make an appointment for the drawing of the 2015 income tax return.
• The final date will be 25^th of June, 2016, not 30^th of June, 2016: This will be the last day to declare tax returns and process the payment via direct debit, except if you only domicile the second term (the second term will be paid November 7th, 2016), in which case you may submit the draft or filing of the income tax until 30 June 2016.
• From 6^th of April until 30^th of June, 2016, both included: The electronic declaration of the Wealth Tax for 2015 – Model 714, except in the case of debit payment, in which case it will be until June 25 2016.

Do you have any questions about filing income tax declaration for 2015? Lexland Lawyers have a team of tax advisors who can help you with any query and tax planning. Give us a call!

Source: Agencia Tributaria / Spanish Association of Tax Consultants.

The floor clause (clausula suelo) is a clause, which in included in the majority of mortgages, which basic structure is that the lender, for example, BBVA, puts a limit on how low the interest rate can fall to.

This means that no matter how low the Euribor (the rate on which mortgage rates are based) falls, the customer must always pay the interest back at the fixed minimum interest rate.

Therefore, anyone, whether consumers, businesses or self-employed, who have signed a loan contract should review them and see if there is a clause whereby the lender, usually a bank, ensures the payment of minimum interest. Normally the percentages  are set approximately at 3% -5%.

You may asking yourselves the following questions:

• How and where?

To find out if you are affected by a floor clause, you can contact us and we will review your mortgage free of charge. For this we will need your loan records and the notarial deed. You are eligible to claim if you contracted a mortgage in the past 15 years or so.

• What are the banks concerned about?

Initially, 45 financial institutions were being sued by customers, but this has now risen to almost 100. Here are some of them : Banco Popular, BBVA, Caixa, Sabadell, Cajamar, Caja Canarias, Caja Duero, Sabadell Atlántico, Unicaja, La Caixa, Banca March.

• Do I have opportunities to win if I claim?

Yes, the vast majority of the claims, some media talk about more than 90%, are won. Even if the floor clauses are legal, banks have not adequately informed consumers and therefore the conditions passed on by the Spanish Supreme Court for its validity are not met. Thus, they are declared void.

You can recover the overpaid amounts and get a reduction on your interest

• Is it worth to apply?

YES. If you don’t claim, there is a very good chance the bank won’t eliminate the clause and you will lose the chance to reclaim the overpaid amounts.

• What happens if the bank accept to remove the clause in order to avoid litigation, shall I accept?

Be careful, because banks would do anything to avoid the removal of the abusive floor clause. Furthermore, if the bank does remove the floor clause (upon your request), you will then not be eligible to claim the overpaid amounts. Keep in mind that you have a great chance to win the claim so don’t hesitate to go after it!

If you find yourself in this situation, please feel free to contact Lexland and one of our qualified lawyers will help you recover a significant portion of the interest paid, on average up to €15,000!