Spanish Solutions - Yes, we can!

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Spanish Solutions Newsletter

JUNE 2010/ issue 10

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In this issue:

·         Building Licences/Permits for Home Extensions and Alterations

·         Common Law Couples

·         VAT News

·         Q. What do I need to work in Spain?

·         Work on Corvera Airport to Resume

·         San Javier July Jazz Festival

·         Baby news

VAT NEWS

VAT is due to increase in Spain from 16% to 18% from 1^st July 2010.  The reduced rate currently applied to services and food production will increase from 7% to 8%.  Spain aims to reduce its budget deficit from 11.2% last year to 9.3% this year, 6% in 2011 and below the 3% EU threshold by 2013.  Zapatero on the 26^th May has given warning of an impending tax rise on the wealthy saying only it would affect those with a "high economic capacity".  No further details have been released yet.

Dublin visit

Amanda from the office will be in Dublin on Wed 23 June in the "Green Room" in the Liffey centre. Call  0034 966 761 741 or e mail her on sales@spanishsolutions.net for anyone wanting a chat if you´d like to see her.

BABY NEWS

We are delighted to announce that Yvonne Hollywood had a second little girl, Milena, on May 28^th and all is well.

BUILDING LICENCES FOR EXTENSIONS & HOME ALTERATIONS

Before you alter your property in any way at all you should first check if anything is written on the subject in your Title Deeds (Escritura).

Depending on the alterations or improvements you intend to make, you may have to discuss your plans with your Community of Owners and obtain their permission. Then you may need official permission. These permissions must be obtained before any work is started.  Do check that official permits are necessary for what you intend to do. In some areas heavy fines are issued for non-licensed work. 

There are two types of building licences:

- a Licencia de Obra Menor (Minor Works Licence) is required for most home improvement projects, including those of a DIY nature, on the existing premises (improvements which do not result in an increase of space or rooms).

 - a Licencia de Obra Mayor (Major Works Licence) is required for any project which extends or changes the useful volume of the property or its surface area (extensions and additions of any kind, including putting a bathroom into an existing space).

Any alterations have to be documented - you apply for the relevant licence form (solicitud) at the Planning office (Urbanismo) of the Town Hall.  If you do not do this you will find yourself in a difficult situation when you come to sell your property, the new details of which will not match with those written on your Title Deeds.

What is the procedure when the building work is finished?

Once the extension has been completed the new description of the property must be declared before the Notary Public and then inscribed at the Land Registry.  This procedure has to be done any time before the sale or mortgaging of the property even on,or just before, completion.

How can the extension be declared at the Notary and then registered?

Various documents must be presented to the Notary to enable him or her to check the legality of the build and if it's description actually coincides with the reality of what has been built. One of the key documents controlling this is the architect's certificate, known as the Final Building Certificate, and this must be signed by the architect, the signature being witnessed and authenticated by the Notary.

In signing the certificate beforehand or appearing personally at the signing of the New Build Deed the architect declares that the building work has been completed according to the original plans which secured the licence from the Town Hall.

Please make an appointment to come and see us if you have any plans to make alterations to your property and we will help you throughout the process.

San Javier July Jazz Festival

Some of you will have heard about the San Javier July Jazz Festival, but for those who haven´t… 

The 13^th Festival in San Javier begins on July 2nd and ends on July 31^st, and includes some greats such as Chris Isaak, George Benson and Dianne Reeves. 

Please see www.jazz.sanjavier.es for further details and tickets.  There is an English option.

Editor: Amanda Thomas, Spanish Solutions sales@spanishsolutions.net   00 34 966761741 Visit us online at www.spanishsolutions.net.  

COMMON LAW COUPLES

There is no "common law" marriage in Spain.  A couple may live together for many years as man and wife and even have children together, but this establishes no legal rights for either the man or the woman. If the man (or the woman) dies, the other has no claim to inherit any share of the other person´s property or to collect their pension.  The Spanish law does not recognise a legal relationship.

Also, unless the man has formally recognised the children as his own, he is not required to bequeath his property to them.  The law regards the children as offspring of a single mother and the births must be registered as such.

If you require any legal advice in this respect or to discuss inheritance or any similar matter please make an appointment to see our lawyer Pedro Molina.  Call 966761741.

WORK ON CORVERAAIRPORT TO RESUME

It is being reported again that work on Corvera airport is about to resume after a loan of 200 million euros has been agreed and the airport should be completed in just over a year in September 2011, all being well this time.

QUESTION: WHAT DO I NEED TO WORK IN SPAIN?

Answer:  To work in Spain, the following is needed by everyone:- NIE Number, Social Security Number and a Tax Adviser *not strictly necessary, however in the case of 'Autonomo'(Self-Employed) the process is complicated and we recommend that you take advice from a registered  Tax and Fiscal Adviser.

 For residents of the European Community, there is no need to obtain a visa to work in Spain.  However, in order to pay the obligatory amounts of National Insurance and Social Security, individual identification numbers have to be obtained for both of these.  Spanish Solutions can assist you in obtaining these documents. 

 Once you have obtained these, you must register with the 'Hacienda', the Spanish Tax department that you are a tax payer in Spain.  This must be done by all foreigners working in Spain, whether working under contract, or working as a self-employed person.

 When you are working for a company as an employee the process is relatively simple.  Your employers will ask for these documents and prepare a work contract on your behalf.  As with all legal paperwork in Spain, for the contract to be valid it must be written in Spanish, therefore if you are not sure what you are signing, you should ask someone to translate this for you.  Your office is not obliged to do this for you and you may have to pay a translator for this.  The level of tax payable is variable and depends on income and personal allowances in terms of a contracted employee. All employees must complete a tax return annually.

 Social Security payments are made on behalf of the employee, directly by the employer.  The level of contributions is dependent on the salary and number of hours as stated on the contract.

 If you are working as an 'autonomo' i.e. if you are self-employed, the process is more complicated.  There are two forms to complete at the Hacienda, one to register as a tax payer, the other to notify the tax department of your 'autonomo' status.  If you have registered as 'autonomo' with the facility to employ members of staff and to offer contracts of employment to them, this can also affect the amount of tax paid.  'Autonomo' persons must  pay VAT (Tax) and PAYE (Pay As You Earn) on a quarterly (3 month) basis.

 With the Social Security payments for 'Autonomo' persons, these will again be variable amounts and will be advised to you by the Tax department after registering.  In order to make the contributions required, you should register with a Fiscal Representative who will calculate your tax liability.  Poli at Spanish Solutions can provide this service for you – please contact us directly on 966 761 741 if you require assistance or further advice.

Poli Borisova, Ana Maria Barbadora Fernández, Eva G. Gilmartin, Lynne Henderson, Yvonne Hollywood, Silvia Sanchez, Amanda Thomas, Susana Garcia Vega and this month we welcome Angie Real to the team.

Full members of TIBA -The International Business Association, an association of professional and legal businesses on the Orihuela Costa.  See www.tibacb.com for more details of their tradesmen and services

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