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    Mallorca Law Blog
    Latest news concerning the Spanish law.

Spanish Law Blog

Here, you will find the latest news concerning the real estate and travel law on Mallorca.

I want to build a house on a rustic finca in Mallorca

I want to build a house on a rustic finca in Mallorca

Lawyers who work in real estate law have heard this sentence many times and the first thing that comes to mind is: please, get in touch with a lawyer to guide you through the process.

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Is there any time limitation to my right to claim the refund of mortgage's expenses?

Is there any time limitation to my right to claim the refund of mortgage's expenses?

In December 2016, through a Supreme Court Resolution, clauses known as "Mortgage’s Expenses” were declared an abusive banking practice. Since then, there has been an eternal discussion in the Provincial Courts about the right to claim reimbursement of set up costs for mortgaged loans and its statute of limitations, which has now been settled by the recent EU Court Resolution dated on April 22nd.

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Can I, nowadays, rent my own home in Mallorca as a Holiday Rental and buy tourist beds for it?

Can I, nowadays, rent my own home in Mallorca as a Holiday Rental and buy tourist beds for it?

At Legal Steps, lately and despite the current Pandemic situation, or precisely because of it, we are receiving quite a few inquiries from non-resident homeowners who intend to rent their home for a couple of months under the possibility called ETV60.

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The purchase option contract and its implications for capital gains tax

The purchase option contract and its implications for capital gains tax

In the real estate, for decades, the conclusion of a Purchase Option Contract has been a very usual practice as a preliminary or preparatory step for a subsequent sale. The performance of an option contract gives the buyer the right, not the obligation, to buy. And both parties can generally get out of the transaction by paying to the other party a compensation equivalent to the amount of the premium, although it will depend on the agreements.

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Is it necessary to pay the tax of plusvalía municipal when there has been no increase in the value of the transferred land?

Is it necessary to pay the tax of plusvalía municipal when there has been no increase in the value of the transferred land?

The tax on the increase in value of urban land, commonly known as tax of plusvalía municipal, is the tax levied on the increase in value that an urban land has had over time as a result of a transfer of its property, either sale, donation or inheritance. It should be pointed out that this tax is only levied on the increase in the value of the land, and that, in principle, it is independent and has no relation to the purchase price of the property.

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Brexit. Military authorization to buy real estate in Mallorca

Brexit. Military authorization to buy real estate in Mallorca

In the last few years of Franco’s Regime, Law 8/1975 and its development by Royal Decree 689/1978 established for foreigners the need to obtain a military authorization as a prerequisite  before buying real estate in Spain. As a result of the exceptions made by the Law itself, in most of the cases, the authorization was only necessary for foreigners to buy rustic land. Years after, Law 31/1990 removed the said authorization for the EU citizens and today it is not required either for Icelanders, Norwegians, and Swiss citizens. 

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Brexit. Tourism and travel restrictions after Brexit

Brexit. Tourism and travel restrictions after Brexit

We are not experts on Foreign Office affairs, and we do not intend to be. Unfortunately, we cannot help you this time with any assistance that you may request on the subject, but we want to make our contribution and bring some light to your new status, giving you a few tricks about it. 

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Brexit. UK tax residents. Implications on the spanish income tax for non-residents after Brexit

Brexit. UK tax residents. Implications on the spanish income tax for non-residents after Brexit

The United Kingdom formally left the European Union on 31st January 2020 and became a third country to the EU. As you already know the transition period ended on December 31st, 2020.

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Brexit. UK tax residents owning a property in Spain. Spanish taxation on properties. Spanish income tax.

Brexit. UK tax residents owning a property in Spain. Spanish taxation on properties. Spanish income tax.

The United Kingdom formally left the European Union on 31st January 2020 and became a third country to the EU. On February 1st, 2020 a transition period started which is due to end on December 31st, 2020.

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