IT'S REAL - SPAIN WILL HAVE A SMOKING BAN

No doubt for many the fact that the Spanish Government has passed its smoking ban in public places will be welcomed. Done despite the attempts of opposition parties to water down the legislation.

From the 2nd January 2011 smoking will be banned in all bars, restaurants and enclosed areas with the exception of prisons, psychiatric units, smoking clubs, pensioner units and units for the disabled.

Hotels will be allowed to reserve up to 30% of their occupancy to smoking rooms.

According to the government the legislation, bringing Spain in line with the rest of Europe, will prevent just under a million workers from being exposed to smoke inhalation.

Whilst central government has requested the assistance of the regional governments on the implimention of the ban there does not seem to be any certainty as to how this will be done.

On the Costa Blanca where tourism is a primary source of regional income the thought of a smoking ban is a little too much to bear. The bars and restaurants are struggling enough without a further downturn in business because smokers choose to go to an open terrace to eat or drink. As we all know many bars and restaurants do not have terraces.

There is the fear that the tourist industry will suffer due to the ban. Where previously the liberal smoking regime has enticed those from Countries will bans this may no longer be the case.

Whilst it might have been more appropriate to introduce the legislation in summer the fact remains that this is not the case. So as of 2nd January 2011 Spain will have no smoking in public places. Policing it might be a totally different matter!!!!

Written by Jo Caress of Costa Blanca Lawyers

HAPPY NEW YEAR - CRASH BANG WALLOP GOES YOUR MARRIAGE

So here it is you have got through Christmas, New Year is just a few days away yet you know you are in a marriage you want out of. Thoughts may be that come the New Year you will drop the bomb shell or will it be crash bang wallop bang goes your marriage when your spouse drops the bomb shell on you?

It is that time of year again where couples for a variety of reasons separate. Whether it is due to the stresses and strains of life, financial issues, or other reasons it is a fact that now is the time when the incidence of separations take place.

Whether we like it or not infidelity is the primary cause of separation and divorce and the fact that one person has strayed is often blamed for the break up of the marriage. Wrong! It is the result of a broken marriage not the cause.

Whatever the reason for separation life on the Costa Blanca in 2010 has been difficult to say the least and it is not surprising that the incidence of those separating is on the increase.

With difficult economic decisions to be made, the reduced or lack of income and the general strain of life for the expat on the Costa Blanca I think it has to be accepted that separation in a number of instances is inevitable.

The difficulty is that with the economic climate as it is resolving financial issues between two people cannot be easy. There is often only the matrimonial home as an asset and in the present climate the sale of that property would not be to the advantage of either party. However, it is often impossible for couples to fund two properties.

Moreover where children are involved other considerations must also be met.

It is often a natural reaction for the mother to wish to return to the UK to be with her family and start again often with the knowledge that she will receive benefits and/or be able to obtain gainful employment.

The trouble is that it is not that easy and if children are habitually resident in Spain then returning them to the UK is child abduction whether we like it or not. So for anyone facing a separation and considering returning to the UK or indeed any other country they should think twice before they do so and should most certain get consent before they do so.

At the time of any separation or indeed for those contemplating separation they should seek legal advice on their own situation. Every persons circumstances are different so what applies to one person may not apply to another.

Specialising in international divorce and separation issues we know the problems encountered, moreover we know how to deal with them. For anyone needing assistance then they can see our website at http://www.costablancalawyers.com/ . Our new website dealing specifically with international divorce will go live on 1st January and will be packed with information intended to assist those living in Spain.

Written by Jo Caress of Costa Blanca Lawyers

SPAIN FINANCES 2011

Quite what the state of Spanish Finance is, is unknown to the general public, particularly the expat community.

It is obvious that the banks do not have any money. Moreover the crippling property market has left buyers reeling and being unable to pursue their purchase because that once available mortgage was no longer there.

Employment levels have dropped despite the unadjusted figures provided. Unemployment has reached 20.8%.

More and more employers are putting employees on part time contracts and the increase in people working on the black economic is more marked.

It is generally accepted that Spain has no money. Hacienda is short to repay monies due and despite the fact that their website states that Capital Gains Refunds will be made within 90 days it fails to do so. In reality it is expect it when you see it.

With the situation prevailing regarding Ireland and its budget deficit and the need to borrow from the EU this raises questions over Spain and Portugal alike. Both have delicate financial situations and notwithstandings Spains Austerity Budget in September there are clearly many anxious faces around.

The reality is all we can do is wait and hope that the situation is not as bad as is anticipated.

The worrying part is what happens if it is and at the moment no one has the answer. There will undoubtedly be further difficulties.

The banks need to work together to create a level playing field. They are not known for their compassion when it comes to mortgage payments, something many expats find hard to understand. However, they do need to realise that there is often the will to pay at a lower level which is often preferable to no payment at all.

Furthermore the cost of repossession is high and with the many properties with no or negative equity repossession is often a way out for an owner. Banks really need to think hard about this. There is no logic in having the number of properties they have with no buyers and they being unable to offer mortgages to buyers. It seems like financial suicide.

The problem is that they have had it so good for so long and have never really had to contemplate the situation as it exists at the moment.

As this blog is written we know that times may still change and there is a glimmer of hope the trouble is it is out of our hands and in those of the politicians, maybe they will think in view of the impending elections about the effect of their actions.

Costa Blanca Lawyers will keep you updated as events unfold but if anyone does need advice then please contact us via http://www.costablancalawyers.com

COSTA BLANCA LAWYERS - Round Up 2010

Could anyone have envisaged the rapid changes on the Costa Blanca over the last 12 months. In 2009 we thought we had seen the difficult times yet they continued with avengence and this year has been a real struggle for most.

For those who tell us otherwise we are sceptical, although there are a small number of businesses flourishing in difficult times.

The sad part is that divorce and separation are on the increase. This is often caused by financial issues and if a couple are experiencing a particularly difficult financial time then a marriage can often take its toll.

There are the usual reasons for separation unconnected to finance and this will always be the case.

Despite the number of times we have written about Wills there are still those who refuse or do not consider it necessary. How wrong they are. It causes distress to those around them in the event of death and in some instances it is impossible to obtain probate.

Estate Transfer can be straightforward if what is needed has been anticipated. However, many families are left with what can only be described as a mess because no thought has been given to the consequences. There is often tactical planning required to minimise Inheritance Tax, something which is often disregarded or misunderstood. We have seen beneficiaries lose thousands because no careful planning was made.

With the Spanish financial climate being as difficult as it is, this has hampered business growth and property purchases.

The banks have been unable to lend money in the way previously known. One client was informed by their bank when they enquired about a mortgage. Sorry but we have no money!

The question of Residency continues to be a problem for people. Many think they are a resident yet they fail to understand that they actually have to tell Spain that they are here - they then wonder why Spain will not accept that they are residents.

Conversely there are many property owners who do not reside in Spain who do not appreciate that they need to do a Non Residents Tax Return and then wonder why they have been fined for the failure.

As with many issues failure to understand does not excuse the situation.

Car transfers have been particularly difficult this year. With many expats returning they have sold their vehicles, probably in all inocence but the right paperwork has not been completed. This leaves two problems, firstly the vehicle is still in the name of the original owner and secondly the new owner can never get title because they have no idea where the seller is.

It is likely that the problems for the expats will continue in 2011 but just a little thought and understanding of the spanish system would go a long way to preventing some of the problems faced.

Capital Gains Tax Affecting Sellers in Spain

For a long time now we have been dealing with the reclaim of Capital Gains Tax for non residents who sold their properties but paid over the odds in Capital Gains.

The EU intervention put paid to the 35% charged on the sale of a property.

Bringing the tax paid by both residents and non residents alike was brought into line at 18% which is where it has remained since January 2007.

Bearing in mind that the Capital Gains Tax payable is based on the NET gain when taking into account expenses we have seen many who in more recent times have been entitled to a reclaim. This is caused by the decrease in value of properties on the Costa Blanca and the fact that many are actually selling at less than they purchased.

There is, however, a hidden problem that sellers are unaware of and that is the fact that in January 2010 Capital Gains Tax on the sale of a property increased to 19% for a gain of under 6000€ yet the increase to 21% on gains over 6000€ seems to have escaped peoples notice.

Only on the sale of a property or in attempting to reconcile the amount actually payable is this coming to peoples notice.

At the point of sale 3% of the declared value is retained and the sellers are then left to work out what their Capital Gains Tax liability is and how to go about it.

Sellers really should be advised before they sell their property of their potential liability but no one seems keen to tell a seller that they might have more tax to pay than they thought.

This problem is largely aimed at the Non Resident home owner but can affect residents too, particularly if they have owned their property for less than three years.

So whilst the finding of a buyer is exciting it is wise to be aware of your financial situation.

For more information or advice on the sale of your property, particularly if you are a Non Resident in Spain contact Costa Blanca Lawyers via the website at http://costablancalawyers.com/ Your Capital Gains Tax liability is your responsibility.

VEHICLE TRANSFER SPAIN

The number of people either buying or selling a motor vehicle privately has increased significantly in the recent past. Mostly by those returning to their homeland.

What may seem the ideal sale or purchase is now turning into a nightmare for some. Why?

Because of the lack of understanding of the transfer system in Spain. Often money changes hands some papers are handed over or signed and everyone thinks that that’s it. Well it isn’t.

For those selling a vehicle it is important that the vehicle is legally transferred out of your name. Until this happens you are legally responsible for any fines, the suma and insuring the vehicle. If the vehicle is involved in an accident and there is no valid insurance you may be held responsible.

Moreover, if you sell a vehicle you have no control over the conduct of the buyer on the road which may lead to denuncias, prosecution or the vehicle being impounded, all while it is still registered in your name.

For those buying you don’t want to find that you are left with a vehicle that is not registered to you. You can’t pay the annual tax because it is sent to the original owner and you certainly cannot sell it or scrap it when the time comes.

So for the sake of getting it right there are some steps that should be taken to protect yourself if you are involved in such a transaction.

In the first instance there should be a contract of sale between the parties. This is legal confirmation of the agreement between the buyer and seller.

All the transfer paperwork should be signed by both parties. Both parties should also ensure that they have copies of the other parties NIE and Passport. Nobody can buy a vehicle if they do not have an NIE number.

Ensuring that you have someone oversee the transfer will help for both parties concerned.
Unfortunately, as with many things Spanish there are fees involved and it is often this aspect that leads to problems. The buyer doesn’t realize that there is transfer tax that needs to be paid and then cannot afford it so doesn’t do anything about it, leaving the seller as owner of the vehicle.

For some they are desperate to sell the vehicle and have really no concern about the consequences of the transfer not being done – why would they, they will not be here to deal with it.

For anyone thinking of buying or selling a vehicle they should ensure that they know what is required of them, how much it will cost and how it should be done.

It is a well known fact that Trafico are difficult to deal with but without the correct paperwork it is impossible, no matter what your explanation is.

RENTING A PROPERTY IN SPAIN

For many the renting of a property looks like a good option when either moving to or living in Spain.

However, before entering into any tenancy agreement you should get the content checked. Many rely on the word of the agent regarding the content, some just sign anyway.

It is only when things go wrong do people actually turn to the wording of a rental agreement and often they have a few surprises.

It is common to have an 11 month contract. Check to see whether there is any cancellation clause and whether or not the contract can be broken.

Problems with the condition of properties are not uncommon and attempting to deal with a Landlord can prove difficult.

Agents rarely want to become involved in any issue and tenants are often left to their own devices.

Whilst historically, landlords have just moved on and re-rented a property they are now exercising their rights to take proceedings against tenants who have vacated a property.

More often than not the tenants have "given notice" either verbally or in writing but usually in English and believe that that is sufficient. Often it is not.

Those facing court proceedings is increasing and any tenant should take care when thinking of leaving a property before the end of the rental period.

The cost of protection is very little compared to the liability that may be faced for a breach of contract.