INHERITANCE & GIFT TAX UPDATE

Planning Law legal conceptSpain’s autonomous communities have devolved powers to legislate in certain tax matters. In the case we are examining here, that of inheritance and gift tax, the Canaries enjoys certain tax benefits for children and spouses that are greater than in other autonomous communities, specifically:heirs belonging to groups I and II (spouse, parents and children) are granted a 99.9% discount of the tax payable on lifetime gifts (“inter vivos”) provided that the donation is formalized in a notarial deed.
Spouses, descendants and adopted children also enjoy a 95% reduction on the net value of elements of a business or professional activity developed by the donor, provided that a series of requirements are met. Continue reading “INHERITANCE & GIFT TAX UPDATE”

WHAT TO DO WITH A SIGNED LONG-TERM CONTRACT WHEN FACED WITH AN UNFORESEEN CHANGE OF CIRCUMSTANCES AFFECTING COMPLIANCE WITH ITS TERMS

3d man business man signing on a blank documentLet’s imagine, for the sake of argument, that you have signed a long-term contract which established obligations or provision of long-term services, and suddenly you find your circumstances changed dramatically (eg. death of the person who had to provide the contracted services) … even a global economic recession .. or indeed any circumstances that are extremely burdensome on one of the contracting parties (terminal or chronic illness), then there exist exceptional legal grounds for annulling a clause in the contract (the usual procedure) or even the termination of the contract itself by means of the “rebus sic stantibus” clause. This legal remedy should be used sparingly. Continue reading “WHAT TO DO WITH A SIGNED LONG-TERM CONTRACT WHEN FACED WITH AN UNFORESEEN CHANGE OF CIRCUMSTANCES AFFECTING COMPLIANCE WITH ITS TERMS”

HIDDEN FAULTS OR DEFECTS IN PROPERTY PURCHASES

wall background with broken plaster seamless
Hidden problem after purchasing a property

This article considers the legal procedures which protect buyers when they purchase a property with serious faults which were concealed by the vendor when the property was transferred at notary. Continue reading “HIDDEN FAULTS OR DEFECTS IN PROPERTY PURCHASES”

BANNED AND ILLEGAL ACTIVITIES IN COMMUNITIES OF OWNERS

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Problems in neightborhood

What should we do in the case of a resident in a community of owners who is carrying out in a dwelling activities that are either disturbing other residents, banned in the Statutes, or are even illegal? Continue reading “BANNED AND ILLEGAL ACTIVITIES IN COMMUNITIES OF OWNERS”

TAXATION OF VIVIENDA VACACIONAL (PRIVATE HOLIDAY RENTAL) PROPERTIES

For Rent Real Estate Home Rental House SignGiven the numerous enquiries and questions received in respect of Decree 113/2015, of May 22, which approved the regulation of holiday homes in the Autonomous Community of the Canary Islands (BOC No. 101 of 05/28/2015), the Canarian Tax Authorities have announced on their website that a vivienda vacacional rental (defined as a temporary holiday let to someone in exchange for money and which has been advertised in tourism-related channels) is an activity subject to, and not exempt from, Canarian Indirect General Tax (IGIC).  Continue reading “TAXATION OF VIVIENDA VACACIONAL (PRIVATE HOLIDAY RENTAL) PROPERTIES”

7 FREQUENT MISTAKES MADE WHEN RECLAIMING RENT ARREARS

Depositphotos_13434958_s-2015Today I am going to explain the mistakes commonly made by landlords when reclaiming rent arrears themselves, i.e. without a lawyer or legal clerk, since the law allows this whatever the debt might be. Read the following carefully and, of course, take steps to avoid repeating them.  Continue reading “7 FREQUENT MISTAKES MADE WHEN RECLAIMING RENT ARREARS”

SUMMARY OF THE MEASURES WHICH MAY AFFECT RESIDENTS OF SPAIN

The Spanish budget for 2018 was meant to have been approved in September 2017, but due to political instability in Spain and the lack of sufficient support to pass the budget, it had to be postponed.  With no 2018 budget confirmed at the start of the year, the 2017 budget was automatically extended until the new one could be approved. Continue reading “SUMMARY OF THE MEASURES WHICH MAY AFFECT RESIDENTS OF SPAIN”