Articles

Asset recovery in Spain – a recent case study

Recovering assets in Spain can be a daunting prospect at the best of times. First of all you must navigate the complexities of working a different jurisdiction with a different legal system and a different working culture. Secondly you have the added difficulty of tracing and securing an asset that the debtor may not wish to be found.

As specialists in tracing and recovering assets in Spain there are very few scenarios we have not encountered at E&G Solicitors in Spain.

We recently assisted the Trustee in Bankruptcy in relation to the realisation of an asset in Spain. The case provides a good example of the work involved in asset recovery as it relates to bankruptcy and property owned by the bankrupt in Spain.

Spanish tax reforms

In late 2012, as we reported, the Spanish tax agency announced a tax amnesty allowing Spanish residents to declare any assets held in their name, and to pay tax at 10% of the amount declared. The end result was that less than half of the government estimate of 2.5 billion Euros was raised. On 31 October 2012 new legislation came into force in Spain with the specific aim of combatting tax fraud.

The new legislation facilitates communication between the Spanish tax agency and tax authorities throughout the world. It also requires all companies and individuals considered to be tax resident in Spain to declare all moveable and immoveable assets either owned by them, or within their control, situated either within or outside of Spain.

Voluntary repossession of Spanish property

As a direct result of the economic downturn many UK nationals who purchased property in Spain have been unable to keep up the mortgage repayments. In many cases there is no hope that the property owners will ever be able to repay the mortgage debt that they owe. In these cases, voluntary repossession may be an avenue to consider.

Why you should make a Spanish Will

If you live in the UK and own property in Spain it is advisable that you have a Spanish will as well as a will dealing with your UK assets. Here we will guide you through the reasons why British nationals make Spanish wills and the procedures you must follow in order to do so.

The best reason to make a Spanish will is that it will make it much easier to administer your Spanish estate upon your death. In fact a well drafted English will can have the same results, but if you have the option it is always better to deal with your Spanish assets in a Spanish will.

Testimonials

E&G Solicitors handled our probate matter perfectly. Their help with the insurmountable paperwork was indispensable. They were professional, courteous and knowledgeable. Always prompt and instructive. We were guided through every step of the process and kept informed at every point. They were patient and the communication was friendly from start to finish. 20/03/2024