Acquisition of real estate in Spain can generate various fees for which, without careful preparation, the buyer can quickly find himself liable. Furthermore, the transaction can accrue taxes, which can be quite different for the buyer and the seller.
Investment in Spain through acquiring shareholdings in a Spanish company requires a series of steps in order to ensure the successful conclusion of the transaction. These are, in brief: the letter of intent, the due diligence process, the signing of the purchase/sale agreement, the closure of the transaction and the closing operations, or post-closing of the transaction.
One of the most problematic issues facing Spanish branches of foreign companies is the filing of accounts. In Spain, the Mercantile Registry Regulations provide for the possibility of filing the accounts of the company itself, when there is the so-called ‘equivalence control’ in both countries, or by submitting ad-hoc accounts in relation to the activity of the branch in Spain.
In Spain, the modality of the internship contract facilitates access to the labour market for young people. This contract falls within the scope of training contracts. It has a maximum duration of 2 years and the stipulated remuneration should comply with minimum standards.
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.
After carrying out the corresponding due diligence process to analyse the accounting, fiscal and legal situation of a business, it is vital to formalize the purchase and sale through the most appropriate legal instrument according to the characteristics of the project
I spent ten valuable weeks working at Mariscal & Abogados in Madrid as part of my year abroad from University College London where I study French & Spanish. I was keen to explore the possibility of pursuing a legal career by spending time in an international law firm. A major benefit of this internship programme […]
Overtime is paid twice in Spain: (1) as integral to the base cost of profesional contingencies, unemployment, FOGASA and professional training, at the rate at which each case corresponds, and (2) as a consequence of the existence of a specific additional cost.
In Spain, banks usually finance real estate acquisitions through mortgages as well as other services. Borrowers run the risk of finding the liability for fees incurred by the appraisal of the property, notarisation of the mortgage and entry into the land registry shifted onto them.
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.