Impact of company abandonment in Spain on the system of managerial liabilityThe Spanish legal system offers creditor protections for companies that cease commercial operations but remain inactive, failing to undergo the necessary dissolution and liquidation processes. Typically insolvent, these companies neglect corporate debts and obligations by discontinuing trading, abandoning the business premises, not filing annual accounts with the Commercial Registry, neglecting tax payments, and failing to fulfill other corporate obligations mandated by law.Read more
Changes to the small claims procedure in SpainOn May 4, 2010, the Procedural Law in Spain underwent a reform with Law 13/2009, significantly expanding the application of the law. The small claims procedure, known as “proceso monitorio,” saw a substantial extension in its scope. Under the reformed legislation, debts of up to €250,000 can now be recovered, a significant increase from the previous limit of €30,000.Read more
The Spanish LLC: advantages, disadvantages, and differences with a regular corporationThe LLC corporate form is highly recommended for small to medium-sized businesses due to its relaxed reporting requirements, relatively low initial capital (around 3,006 Euros), and limited liability for members. According to legal experts, approximately 90% of new companies in Spain are LLCs, with the remaining 10% being various forms of partnerships.Read more
Taxes on inheritance and gifts in SpainThe inheritance and gift taxes in Spain taxes the increase on wealth of a property, right or asset, the first one by reason of death of the transferor, the second one while still alive. Both must be paid by the beneficiaries, the amount will be vary depending on which autonomous community the asset is.Read more
Redundancies in Spain in times of crisis: economic and productive reasonsThe Spanish Code of Labour Law (Estatuto de los Trabajadores) sets out a particular type of redundancy known as redundancy based on objective reasons. There are several reasons for which …Read more
Spanish Insolvency Law: the responsibility of directors in a situation of insolvencySpain’s Insolvency Law safeguards creditors in instances of director misconduct or negligence during company insolvency, ensuring confidence in the legal framework’s protection for creditors.Read more
