Landlords in Spain to get Better Protection from Squatters and Tenants who don’t Pay Rent

Proposals have been approved to tighten up on trespassing and the illegal occupation of property in Spain. Until now, home there have been mechanisms in place for owners and landlords to deal with squatters and those who have outstayed their welcome, but none of them have worked efficiently. However, the proposal, approved now in Congress looks set to make squatting and illegal occupation more difficult in Spain.

Under the proposed regulations now going through Parliament, the judicial process for dealing with squatters can be triggered faster and with increased penalties. It is expected that a clamp down on through the issuing of large fines will dissuade others from taking up residence in properties they are not paying rent on.

The proposal for the change in the law was made by the ruling PP party in conjunction with the centre-right party Ciudadanos. It was opposed by other parties in the house who have concerns about the potential abuse of this power and its …

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What you should know about ‘New’ Municipal Added Value Tax

At the end of last July, the Spanish government approved a bill modifying the law on property transfers that annulled the payment of municipal surplus value on houses registering a loss at the time of transfer.

The cornerstone of the new law is how to determine whether or not there has been an increase in the value of the land, which is established when the property is sold.

There are three main points arising from the introduction of the new law:

Losses on Property Transactions no Longer Subject to Tax

The new tax will not be applied in cases where it is clearly proven that the value of the land has not increased compared with the price of the property at sale and its original purchase price. In these cases the taxpayer must make a declaration that the sale is not subject to Plusvalia while providing proof that there has been no increase in land value. However, it is not clear what proof of sale and acquisition values is required or what transmission and a…

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Court Receives More Than 1000 Floor Clause Claims in Just Three Months

The only court in the region of Murcia dealing with floor clause claims has reported that 1,074 lawsuits have been filed in the first three months, exceeding expectations considerably.

It had been forecast that around 250 lawsuits would be filed in the first three months, although that figure has more than quadrupled in reality. Despite August being traditionally a quiet month in Spain, particularly in the judicial system which ordinarily has a reduced workload in the summer, the activity created by floor clause claims increased the court’s workload by around 43%.

On June 1st this year, emergency measures were approved by the General Council of the Judiciary (CGPJ) and came into force immediately, after the European Court of Justice ruled that backdated claims should be included in the process. The floor clause issue has also raised other concerns about poor mortgage lending practices including early maturity, interest arrears and multi-currency mortgages, which …

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The Importance of Legalising Unregistered Property Extensions in Spain

Often when considering selling, property owners decide to make improvements or build extensions to their Spanish properties to add value and make them more attractive to prospective buyers. Adding an outbuilding in the garden next to the pool, a few additional guestrooms, building a cellar with home cinema or an indoor heated swimming pool all sound like a great idea on paper but unfortunately, you can find yourself in a bureaucratic nightmare.

The fact is that unless these kind of structural improvements have been approved by the relevant authorities, they may become a complete waste of money and even prevent you from selling your home.

What are the Legal consequences of Unregistered Property Improvements?

There are several risks associated with not following the statutory procedure as follows:

Should your town hall catch you undertaking non-sanctioned improvements on your home you can be heavily fined and forced to pull down the improvements at your ow…
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