Embargo On Property In Spain?
- Víctormanuel Paz
Why you might have an embargo – An embargo might be placed on your Spanish bank account when you have an outstanding debt. It could be a missed mortgage repayment, a loan you’ve defaulted on, non-resident taxes or IBI property tax in Spain that remain unpaid.
- It comes either in the form of a court order or from a government public administration office in Spain, such as the tax office ( Agencia Tributaria );
- A private individual or a company can take an outstanding debt to court;
Whilst a decision is made about how the debt will be settled, the judge will freeze your account. In the case of a Spanish government department , there is no need to go to court. Your account can be frozen and you may not even realise that you owe any money! The debt might be settled by money being taken out of your bank account in Spain directly.
How long does an embargo last?
Purpose [ edit ] – There are various purposes:
- For delayed open access journals , the embargo separates the most recent period, for which a subscription is needed, from an older period, where a subscription is not needed and anyone may access the article. This can range from a few months to several years.
- For self-archiving , the embargo is a period of time set by the publisher in the copyright transfer agreement where access to the archived version of the article in a digital repository is restricted until the embargo period expires. Typical embargo periods range from 6 to 24 months, though some publishers may require an embargo of up to 48 months.
- In full-text databases, such as those of EBSCO Publishing or ProQuest , it separates the most recent period, where only a title or abstract is available, from an older one, which is openly accessible.
How long before a debt is written off in Spain?
Normally, when an individual or company requests a loan from a relative or a mortgage from a financial institution , it is not repaid on time or at least until it is claimed. The Superior Court of Justice of Madrid has recently ruled in a ruling that a debt in Spain cannot be considered forgiven just for the mere fact that it is not reclaimed after its expiration date.
- If the loan is written off, the debtor will have to pay the Spanish Inheritance and Donations Tax ( Impuesto de Sucesiones y Donaciones or ISyD);
- With this ruling, the Madrid Supreme Court opposes the interpretation of the Spanish tax authorities, the Hacienda , which considers that if the lender doesn’t make moves to recover the loan, they are effectively cancelling it;
In fact, the Court considers that reaching “the deadline of an unpaid debt simply implies the start of action to claim it”, comments José María Salcedo, a partner at the law firm Ático Jurídico. So, when can the loan be written off due to a lack of anyone claiming it? The only criterion given by the Madrid Supreme Court is that the repayment of the loan will only be cancelled once the civil limitation period, which is five years, has elapsed.
- But, as Salcedo reminds us, the Court itself acknowledges that this interpretation leads to multiple problems due to the long statute of limitations of civil actions which can be interrupted and resumed for different reasons, such as partial payment or recognition, which would have to be added to the already long initial term of the loan;
“However, any other interpretation, apart from having no legal support, would lead to indeterminacy and legal uncertainty because it cannot be considered that the lender has waived their right to demand the debt for the course of a “prudential term”, such as two or three years, without having exercised any action,” says the lawyer.
In short, the writing off of the loan would only be understood to have taken place when the lender’s right to claim repayment of the loan from the borrower has expired. In this case the loan will be considered a donation and the debtor will have to pay the ISyD.
If they do not, the tax authorities have four years to check and settle this tax. The granting of a loan is exempt from the Property Transfer Tax ( Impuesto de Transmissiones Patrimoniales or ITP), but in the case of cancellation of the loan by the lender, it must be taxed according to the ISyD.
Can I put a charge on a property in Spain?
Charges and Encumbrances on Property in Spain – The charges are limitations on the enjoyment or ownership of a property. In Spain the law requires that they should be in a public document and inscribed in the Land Registry. But Could be other debts of which the property is liable, that do not appear in the Land Registry.
It is a must to do all the Due diligence process checking the property in Spain before the purchase. The charges on property can be economic , such as the mortgage, in which the property behaves as guaranty for the repayment of an amount borrowed.
Or, on the other side, they can be Third parties’ legal rights that limit the enjoyment of the property by the owner, such as easements in which a third party has a right to use or enjoy the property in some way. Finally, there are other charges that attract the property as a warranty, no matter who was the debtor. .
What do you mean by embargo?
Legal Definition of embargo – (Entry 1 of 2) 1 : an order of a government prohibiting the departure of commercial ships from its ports 2 : a legal prohibition on commerce an embargo on arms shipments 3 : an order by a common carrier or public regulatory agency prohibiting or restricting freight transportation Legal Definition of embargo (Entry 2 of 2) History and Etymology for embargo Noun Spanish, from embargar to bar.
What does embargo mean in Spain?
Understanding Embargoes In Spain Expat Tips Published: 14 November 2018 12:19 CET Updated: 22 June 2022 12:19 CET For many of us, especially if we are from the UK or other parts of Europe, the word ‘ Embargo ‘ can have a different meaning than what it has here in Spain. For most of us, the word Embargo is related to some kind of sanction that one country or government imposes on another. If you Google the word Embargo you will see something like this:- Embargo – “An official ban on trade or other commercial activity with a particular country.
- ” What Is an Embargo in Spain? Here in Spain, an Embargo doesn’t only apply to countries;
- Your personal assets or your bank account can also be Embargoed, which seems somewhat alien to anyone not familiar with life here;
An Embargo in Spain is when your bank account is frozen and/or money is taken from it without your permission to pay an unpaid debt. If the bank account has insufficient funds to pay the debt, a person’s personal assets may also form part of the embargo.
Who Can Enforce an Embargo? Fortunately, an embargo on your bank account or a person’s assets can only be initiated by a judicial authority via court order or from a government department. It cannot be done by an individual unless they have brought a lawsuit against the debtor to court.
The court would then decide whether an embargo can be made. Many embargoes are a result of unpaid taxes and fines. For example, if someone hasn’t paid income tax owed, IBI tax (Council tax), car transfer tax, if they have defaulted on a loan, or missed mortgage payments or community fees.
It is important to note that the tax authorities and other government departments will not need to apply for an embargo of your account via the courts. They have the power to do this directly as long as they act within the law.
How Are You Notified If You Have an Embargo? As most embargoes are due to some form of debt, in most cases you would be notified in writing that money is outstanding and that you have a debt. If you don’t respond to any requests, then an embargo may then follow.
In most cases though, you should be notified about this before the embargo is placed. This is one of the reasons why if you are a non-resident here in Spain that you should have a fiscal representative to manage things while you are not in the country.
Missing such demands can be very costly if you are not aware of such notifications. How Will I Know If My Account Has Been Embargoed? As pointed out above, you will usually be informed in writing if you have debts that are unpaid and whether an embargo will be made against you.
If you have someone checking your post while you are away, you should never really get into the position where you are unaware of any debts and a possible embargo. What Should I Do If I Receive an Embargo? The first thing to do will be to check with your bank to find out who has issued it.
Most embargoes will have a reference attached to them so you can find out exactly which government department it relates to. You will then be able to contact the issuer and pay off any debt that you may have outstanding. Once paid the embargo on the bank account can then be lifted.
- Your other option is to leave the embargo on your account in place and wait for the total debt to be taken from it;
- The embargo should then automatically be removed once the debt has been settled;
- How Can I Prevent Being Embargoed? Quite simply, try to make all of your payments and don’t get into debt;
If you are having problems paying a debt whether it is a tax, a loan or a mortgage, make sure you approach the relevant department first and attempt to resolve the problem. Burying your head in the sand, hoping it will go away is rarely an effective approach to take.
It is always best to deal with the problem and try to manage it before things get out of control. Will My Whole Bank Account Be Frozen? An embargo will usually only freeze the amount that is owed. The rest of your funds should be available to withdraw.
Depending on the funds you have in the account, the embargoed amount of debt may be taken in one payment or over a series of months or even years. Another important thing to note is that there is a certain amount that must not be embargoed and is classed as living expenses.
So €736. 00 must not be touched as it is the current minimum wage in Spain for 2018. Also, any utility bill payments and direct debits are not embargoed as they are essential for you to get by. Anything above this can be embargoed and is done so on a sliding percentage scale.
In some cases, an account can be frozen completely meaning that you are unable to access any funds in the account. This can be for several reasons for example the bank may need further documentation or ID from you to clarify your residence status, or if someone has passed away and it is a joint account. They are:-
- Money and bank accounts
- Shares, stocks, royalties, deposits and other financial assets
- Precious metals or stones, gold, jewellery and art
- Rental income
- Interest or other forms of income
- Car’s, boats. livestock or other movable assets
- Company shares
- Salaries, pensions or income from work
- Credits or rights that can be applied in the long-term
If you are notified of an embargo, do not panic. Embargoes are very common here in Spain. The first thing to do is to find out who has initiated the embargo and deal with them directly to resolve the issue.
Are embargoes illegal?
Embargoes are generally considered legal barriers to trade, not to be confused with blockades, which are often considered to be acts of war.
How long can a debt be chased in Spain?
How long before a debt is written off in Spain? Payment claims in Spain have a limitation period of 5 years, which applies as soon as the invoice is due and payable.
What happens if you don’t pay a loan in Spain?
The economic difficulties inflicted by the COVID-19 pandemic are far-reaching, affecting the security of jobs, viability of businesses and payment of mortgages. If you are a non-Spanish resident who owns a property in Spain, either as a holiday home or as an investment, the current situation may have left you struggling to meet your monthly payments and the problem of unpaid instalments.
Faced with this prospect, it’s vital that you contact your bank sooner rather than later to explain the situation and find a solution. If you are no longer able to pay the mortgage but have not yet taken action, your bank will attempt to contact you to learn more about your circumstances and seek a way forward.
Often, this is not an easy task and may even prove impossible if the owner has changed addresses, emails and phone numbers. Depending on your current situation and the length of time over which you have failed to pay your mortgage, there are few options that the bank can pursue:
- After one or two months of non-payment, the bank will provide the holder with the arrears. That is the sum of the outstanding monthly instalments plus late payment interest and expenses. Once the arrears are paid, the holder can continue with making the normal monthly repayments.
- If non-payment of the mortgage stretches to a few months, the bank will continue to attempt collection of the unpaid instalments. It’s possible that the bank could agree an extension of the time permitted to pay the mortgage and a reduction in the monthly payment. This is called Novación (Novation). The holders of the mortgage will need to sign these new conditions, either in person by attending the Notary in Spain or through Power of Attorney.
- If the mortgage has not been paid for six months or more, the bank could start legal proceedings in Spain to repossess the property.
Once the legal proceedings have started in Spain, the holder of the mortgage can still pay the arrears in full in a single payment to avoid the repossession of the property. However, even if repossession takes place, depending on how much money has been obtained from the auction, there may still be a debt remaining. If the amount obtained through the auction is more than the remaining mortgage, the mortgage can be cancelled in full.
Can you Gazump in Spain?
Gazundering – This is typically a strategy to lower the sales price moments before completing on a property before a notary. Unlike in other countries, such as the United Kingdom, gazundering is not legally possible in Spain. This is because on buying property, whether off-plan or resale, you sign a contract with a seller which ‘locks you’ into a preagreed sales price.
What are the effects of embargo?
Consequences of an Embargo – Embargoes are not violent methods of influence, but they can still harm people and the economies of the countries involved. An embargo can block the importation of important goods and services to the civilian population of the state that is subject to the restriction.
- In a state that imposes an embargo, businesses may lose the ability to trade or invest in the state that is subject to the embargo;
- According to the Geneva, Switzerland-based World Economic Forum , the result of multinational embargoes is never a “zero-sum game;
” Relying on the power of a government, a state with a stronger economy can cause more damage to the target state than it will suffer in response. However, the punishment does not always lead to a change in the embargoed government’s political behavior.
What is another word for embargo?
OTHER WORDS FOR embargo 4 ban, restriction, interdiction, proscription.
Which of the following is usually an effect of an embargo?
Which of the following is usually an effect of an embargo? Prices fall because consumers have more options.
What happens if you have a debt in Spain?
Types of debt collection in Spain – There are two possibilities for debt collection in Spain : the out-of-court or extrajudicial procedure or the court procedure. The first procedure can be applied if the parties agree on the payment methods and amounts.
- If an agreement can’t be reached, the lawyer will start the judicial procedure;
- As a general rule, parties that are involved in debt recovery in Spain should know that the process can last approximately 8-12 months, which represents a short period of time according to the Spanish law standards;
It is also important to know that, starting with 2015, a claim for the payment of a debt can be completed through a public notary in Spain and, in the situation in which the debtor fails to provide an answer, in a period of 20 days since the notification was sent, the court procedures can begin.
What happens to unpaid credit card debt if you move abroad?
What happens to your debt when you leave the country? – Technically, nothing happens to your debt when you leave the country. It’s still your debt, and your creditors and collectors will continue trying to get you to pay it back. Just as they would before, those efforts may include phone calls and letters.
- Missed payments will eventually begin hitting your credit report, likely causing your scores to drop;
- From the debt’s perspective, not much has changed;
- Eventually, your creditors may file a lawsuit in an attempt to collect your unpaid debts;
If you don’t appear in court or have a lawyer present to represent you, the case will almost certainly be decided in your absence (and usually not in your favor). At that point, there will be a judgment against you, ordering you to repay the debt in question.
- If you have assets left in the US, including bank accounts or investments, your creditors may be granted the ability to seize those assets in an attempt to repay your debt;
- And if you continue working for a US-based employer, they could also garnish your wages;
Depending on the size of the debt, the creditor may choose to bring suit against you in your new country of residence. This would be a very costly effort, though, and would depend largely on the laws the country in question. Given all of that, it may not be worth it for the creditor.
How do you collect debt from someone in Spain?
Do they have bailiffs in Spain?
FREQUENTLY ASKED QUESTIONS (FAQ) by foreign clients – Usually, when a foreign client contacts Piñera del Olmo Canals’ lawyers, he/she is confronted with a Spanish legal system, which is unknown to him. There are a lot of legal professionals in Spain of which the foreigners ignore their existence.
For example, the “notary” or the “bailiff/Procurador. ” All clients know that they need a lawyer for specific issues. However, they do not know that in Spain, the Law sometimes imposes that the lawyer works with another professional in the court cases (e.
, Both a lawyer and a bailiff are needed to order claims exceeding 2. 000 euros). Our lawyers have developed a summary of the frequently asked questions they face when clients want to work under the Spanish legal system in Barcelona, Sant Cugat del Vallès, Madrid, Marbella or any other city in Spain: A public notary authorizes public deeds.
- Spanish law distinguishes between public and private documents;
- It is necessary to notarize certain documents into public deeds, since they carry a greater evidential value or because it is a prerequisite under the Law, to register them in a public registry;
For instance, real estate purchases usually must be formalized in a public deed, which needs registration with a land registry. Our Law Firm uses notaries for some procedures, such as real estate purchases, wills, powers of attorney, company incorporation, citizenship protocols for Sephardic descendants, etc.
Our law firm works with notaries who speak English, but in case you need a notary in a city where there are no English speaking notaries we can also translate the deed. Also, our sworn translators may obtain a translation of the public deed you are about to sign for you to understand what you are going to sign and what rights and obligations it entails.
Notary fees are calculated according to an official rate. There are different registries in Spain, such as the Commercial Registry, the Registry of Movable Property, the Civil Registry, and the Land Registry. There are also other registries, such as the Patents and Trademarks Agency which registers patents and trademarks, the registry of criminal records, or the registry of weapons. The registries in Spain our lawyers usually consult are:
- The Commercial Registry , which registers acts that are commercial in nature, such as the incorporation of companies or the identity of the managers of a company.
- The Civil Registry , which registers the marital status of persons, for example, births or marriages.
- The Registry of Movable Property , which lists the owner of some movable property, such as cars. This Registry is necessary to know the identity of the owner of the vehicles circulating on the roads.
- The Land Registry, which contains the identity of owners of real estate. This Registry is not very often updated, and sometimes the notary and the registrar need to correct the descriptions of the real estate that the clients intend to buy in Spain.
The registration of a purchase agreement is essential since it shows who is the owner of the real estate to third parties. Our lawyers can help you obtain the registration of your property. Furthermore, using this Registry, our lawyers can verify certain burdens, such as mortgages or easements. The lawyers of Piñera del Olmo Canals examine the Registry (in addition to other sources) to ascertain that the properties or companies our clients intend to purchase are without problems.
Our Spanish lawyers can check online most Spanish registries and consult the information they contain. In Spain, the court requires a bailiff, besides to a lawyer in a lot of judicial proceedings. For instance, most of the claims concerning amounts exceeding 2.
000 euros have to be filed by both a lawyer and a bailiff to be admitted in the courts of the first instance (civil courts) in Spain. The bailiff is in charge of submitting the writings of the court to the lawyer. As the Notary fees, the bailiff’s fees are regulated by Law too.
- Our office/law firm works with bailiffs from all regions of Spain (e;
- , Catalonia, Madrid, Andalucia);
- We can take care of all types of judicial proceedings;
- Our bailiff network permits us Piñera del Olmo Canals’ lawyers work for the whole Spanish territory;
Judges, prosecutors, and lawyers specialize in law but not in other fields, such as medicine, calligraphy or architecture. Very often, judicial cases need a perito as an expert witness who provides an expert report, which explains to the court the circumstances of the case and responds to the questions of the lawyers for the latter to prepare the defense/case.
- For instance, in inheritance proceedings with a famous painting of Dali, it can be that our lawyers will need an expert witness who knows about art and the value of the artwork;
- In a case requiring the assessment of property, a real estate agent would determine the value of the real estate; in a medical negligence case, a medical specialist would need to act; document forgery cases would require an expert witness on calligraphy to determine the authenticity of a signature; etc;
Peritos are essential in Spanish proceedings, and our lawyers advise you about them and their fees when required. The courts also possess a list of peritos who, sometimes, may be requested in court. The lawyers of the firm will help you determine whether it is relevant or not to use a perito and to decide which one is the most appropriate for your case.
In some cases, the perito is a piece of vital evidence, and in other cases, may help increase the chances of winning the case. Not all cases require a perito. For instance, the use of expert witnesses is not needed in most divorce proceedings (except in cases in which psychologists are, and in those cases usually the perito of the court is free of charge) or in most of debt recovery proceedings.
For example, in a recent case in Sant Cugat del Vallès (Rubi’s court) and another in Marbella, our lawyers used a team of court-appointed psychologists to determine which custody was the most appropriate for the child. In another case in Barcelona (Catalonia) our lawyers used a real estate expert to assess the value of a property/immovable.
Our lawyers have worked with peritos from Barcelona, Sant Cugat del Vallès, Madrid, Marbella and many other cities of Spain to obtain the best results for our clients. Foreign public documents need to be “validated” to assert their unique evidential value.
This makes sense, given that neither civil servants nor lawyers know the public documents in every single country of the world. The Spanish lawyers know the public documents of Spain, but not those of Thailand, UK or Colombia. In Spain, there are many cities with a high percentage of foreigners (for instance, Marbella, Sant Cugat del Vallès, Barcelona, or Madrid).
- When dealing with international issues, it is common that for all types of legal matters, our lawyers need to use foreign public documents;
- The solution is to certify the documents with the “The Hague apostille,” and in case of countries which are non-signatories to the Convention, to legalize the document;
Our lawyers can advise you on what is required in your country (apostille or legalization of the document) and on each step which needs to be followed, on the procedure. The lawyers of Piñera del Olmo often deal with foreign clients, since the majority of those clients are non-residents who live in countries from all around the world and thus, they are used to assist them regarding the legalization of documents. Mainly, in the following order, depending on the nature of the matter at hand:
- Civil and Commercial Courts
- Criminal Courts
- Civil Courts
- Contentious-Administrative Courts
- Military Courts
- Penitentiary Courts
- Ecclesiastical Courts
There are distinct courts for each subject matter; for example, there are the courts of the first instance and the courts of appeals. They are also classified based on their function: there are criminal courts investigating crimes and other courts judging them. There are criminal courts for specific subject matters too, such as the Courts of Domestic Violence. Likewise, there are many courts in charge of different subject matters, as you may find more than 50 courts for each subject matter in large cities like Barcelona and Madrid.
- There are many types of courts in Spain;
- Our lawyers can represent your interests in all of them;
- Of course, there are some subject matters which have fewer courts, such as domestic violence, but there are more 50 civil courts (courts of the first instance) per subject-matter (for example, there are 59 civil courts handling suits filed by Spanish lawyers in Barcelona);
Lawyers know the jurisdiction to which their cases correspond, but they do not know the judge beforehand because cases rotate following the order of lawsuits filed with the court’s filing desk. In cities like Barcelona or Madrid, it is difficult to know which judge is going to handle the case, but in any event, the judges in Spain are impartial, and all of them are highly trained and educated.
- We have specialized lawyers to appear before all the different courts in Spain and with extensive courtroom experience in the entire country (Barcelona, Sant Cugat del Vallès, Madrid, Marbella, or Bilbao);
It depends on the court’s workload, but usually, proceedings are lengthy Spain. Our lawyers know that civil cases may take (excluding appeals) between 6 and 15 months. A criminal case lasts much longer, except in case of minor offenses. The majority of minor offenses represented by our criminal lawyers take an average of 6 months to be finalized.
- As always, there are courts more overwhelmed with work than others, but Barcelona and Madrid are quite fast, and generally solving cases within the average Spanish time;
- When a Spanish lawyer files a complaint, he or she does not know which court will process it, as there are various courts for each subject-matter;
For example, there are 59 civil courts of the first instance and 11 commercial courts, only for Barcelona in 2018. If a lawyer from Barcelona files a complaint before the commercial court of Barcelona, he or she knows his complaint will be dealt with by the commercial court in Barcelona, but he or she does not know which of the 11 courts in Barcelona will handle his case.
- There are some courts with a heavier workload than others, for example, because they have received cases that have not been solved in the mediation stage and the proceedings, therefore, require more significant work for the judge and officials, or because there have been more extensive court enforcement procedures;
This is why the timeframe may vary, depending on the court and the type of proceeding. In some cities, the Ministry of Justice adds reinforcement courts to reduce the workload of some cities. 8) In the labor proceedings, can I submit a lawsuit directly? No, you must first go to an administrative conciliation body to try to reach an agreement.
Nevertheless, you must take into account the time-limits since the time-limits in Labour Law are short, and occasionally you should lodge the complaint in court before the conciliation to avoid the expiry of the deadline.
The Spanish lawyers know that it is essential to control the time-limits in Labour Law to prevent the loss of the case through the prescription period. In big cities like Madrid and Barcelona, conciliations can occasionally increase the workload of the Administration.
Our lawyers working in Madrid and Barcelona know that they have to control the time-limits and sometimes lodge a complaint before the conciliation. The compensations for employment dismissals vary according to the type of termination, the number of years of employment, or the wages involved.
Our lawyers will indicate which compensation corresponds to each case. In Spain, there are various legal actions, and each of them has its time-limits. There are short time-limits which can last for days and others for years. The office of Piñera del Olmo has filed lawsuits based on facts that occurred over a decade ago.
Catalonia also has its own Civil Code, which sets its time-limits, as some Spanish regions have their own particular civil law regulations. It is essential that, if you think you have a right and you can resort to the courts to defend it, you get the assistance of a lawyer as soon as possible to avert the expiry of the time-limit of a judicial claim.
It would be best if you considered that in some cases, you may use different legal actions. Although some of these actions have expired due to estoppel, you may have recourse to other actions not affected by estoppel. The Spanish lawyers of Piñera del Olmo Canals will advise you on the most effective types of actions and their time-limits.
There is an online secti o n on traffic accidents with many details, but in any event, if you have suffered an injury, we always recommend you to go immediately to ER, thus creating an official record of your injury.
We also recommend you to contact a lawyer to examine your case and help you obtain supporting documents such as police reports or insurance details of the opposing party. Furthermore, a Spanish lawyer will help you calculate the compensation which corresponds to your case.