Many Spanish banks who lent to property buyers between 2001 -2012 used floor clauses to guarantee minimum interest pay-ments or other unfair mortgage terms. There were also issues where deposits were lost on properties that were never built or completed when developers went bust after the property crash.
Our clients, many of whom are British, find themselves overpay-ing on mortgages on Spanish properties that are in negative eq-uity that they cannot afford to sell, or have trouble keeping up with mortgage payments.
Bank Claims Case Study: In 2016 the European Union Supreme Tribunal declared that the Spanish banks must repay the excessive interest paid by custom-ers affected by bank floor clauses. Legislation was also passed by the Spanish Supreme Court enabling people to pursue the Span-ish Banks for lost deposits on properties not completed.
We are one of the most experienced specialists in Spanish Floor Clauses, acting for clients since the Spanish and European Courts made their decision on claims. As we have offices in both the UK and Spain our clients do not need to travel to pursue their bank claims, no matter where their house or bank is located.
Many of our clients are British and we initially engage with them via our London office. Our specialist team then analyse their mortgage contracts, investigating the hidden legal terms and expressions to see whether their mortgage payments tracked the Euribor interest rate and assess if they can make a claim for any excess interest that was paid to the bank since the mortgage was first signed. We also identify associated mortgage expenses such as notary fees, tax etc that could also be claimed.
Using our representatives in our Spanish office and their in-depth knowledge of the Spanish legal system, we are able to chal-lenge and negotiate with the banks on behalf of our clients to get the maximum amount due, as often many of the banks offer a reduced settlement and often only pay the full amount if threatened with legal action. Should litigation be required we can take our client’s case up to the Spanish Supreme Court.
Spanish legal representation is fundamental when negotiating with Spanish banks or mortgage lenders.
With offices in both the UK and Spain, and British and Spanish registered lawyers, we are able to provide legal representation and advice to private individuals and can organise and advise on arrangements relating to property and mortgages in Spain.
Our presence and experience in the property, real estate and mortgage market allows us to intervene quickly, simplify matters for our clients, reduce costs and help resolve their problems. Our rate for claims against Spanish banks is among the highest in the property law sector and hundreds of our clients have successfully won their cases and renegotiated their debts by challenging unfair mortgage terms, repossessions and negative equity.
The Beckham Rule is a special Spanish tax regime for expatriates. It allows qualifying individuals to pay a flat tax rate on employment income and to be treated as non-residents for certain other tax purposes.
Any individual who moves to Spain for professional reasons and has not been tax resident in Spain during the five previous tax years may apply. This includes employees, remote workers, directors, and certain entrepreneurs.
Qualifying income is taxed at a flat rate of 24% up to €600,000. Income exceeding that threshold is taxed at 47%.
You must not have been considered a tax resident in Spain during the five tax years immediately preceding your relocation.
Your move to Spain must be for genuine employment or professional reasons, such as:
Holding an employment contract with a Spanish or foreign companyWorking remotely from Spain under a Digital Nomad Visa
Acting as a highly qualified professional or entrepreneur conducting a business activity in Spain
Serving as a director of a company, provided that—if the company is asset-holding—you hold no more than 25% of its shares
You must apply for the regime within six months of registering with the Spanish Social Security system (Seguridad Social). This deadline is strictly enforced.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
The regime applies for a total of six tax years: the year you become a Spanish tax resident and the following five full years.
Under the Beckham Rule, all employment and professional income is taxable in Spain, regardless of where it is earned. However, income from non-Spanish sources—such as interest, dividends, investment income, and capital gains—is not subject to Spanish tax.
You are only subject to Wealth Tax and Solidarity Tax on assets located in Spain. Foreign assets are excluded from the Spanish tax base during the six-year period.
Your spouse and dependent children under 25 (or of any age if legally disabled) may also benefit from the regime, provided they meet the requirements and file separate applications.
If you move to Spain to act as a director, you may apply regardless of your shareholding. However, if the company is an asset-holding entity, your ownership must not exceed 25%.
If you cease to be tax resident in Spain before completing the six-year period, you will automatically lose the benefits of the regime. From that point onward, you will be taxed under the general Spanish tax system, which includes progressive rates and worldwide income taxation.
Del Canto Chambers has a specialised team ready and eager to support you to apply for Spanish nationality. If you are interested in applying and would like to know if you are eligible, we would be delighted to help you.
In accordance to the Bar Standards Board, we hereby inform you that you may contact us for a quotation.
