Although the sale of assets is generally subject to Value Added Tax (IVA) and Capital Transfer and Stamp Tax (ITPyAJD), the transfer of a complete branch of activity or business in Spain has flexible taxation.
Author Archive for: Jose Maria
About José María Mesa
With both a Business Administration degree and a Law degree, José María Mesa specializes in company law, civil-commercial contracts and mergers and acquisitions.
For any further enquiries please
Entries by José María Mesa
In Spain, article 143 of the Capital Companies Act regulates financial assistance to limited companies and article 150 to public limited companies. The current prohibition prevents a company from contributing financially to the acquisition of its own shares or stocks by a third party.
Personal guarantees include personal securities, which can be characterized as an ancillary obligation, since it depends on the main obligation, and as a subsidiary obligation as well, in that only if the principal debtor fails to comply is it possible to demand payment of the debt from the guarantor.
Among enforceable personal contractual guarantees, the bank guarantee payable on first demand stands out. With this type of guarantee, a banking institution commits to respond to the fulfilment of an obligation, automatically and immediately, and without the ability to demand clear evidence of noncompliance.
Contract guarantees are types of contracts that provide greater security to the settlement of a debt. In Spain there are different types of guarantees: personal guarantees, security rights, financial guarantees or constitutional guarantees.
While company by-laws govern a company’s activity and are public, partnership agreements are private agreements that govern, among other things, the organizational aspects of the company. However, partnership agreements may be made public at the request of any of the partners.
Under Spanish Law, there are different options to seek compensation for breach of a shareholder’s agreement, which are agreements that, although not mandatory, are highly recommended since they prevent future problems between partners and a company.
Practical analysis on remotely piloted aircrafts, also known as drones or RPAS: the existing legal framework in Spain and requirements necessary to qualify as an operator of drones.
The new law regarding the use of drones in Spain regulates commercial, non-commercial and recreational use of drones. This regulation includes aerial works which can be performed with drones, as well as the restrictions that every user of drones must take into account when handling such devices. The fines for not complying with the restrictions can reach a height of €225.000.
The Law on Chattel Mortgage and Pledge without Transfer of Possession provides for the pledge stock of boats as a guarantee. Its objective is to facilitate credit to dealers to ensure compliance with the obligations of financial institutions.