VEHICLE TRANSFER SPAIN

The number of people either buying or selling a motor vehicle privately has increased significantly in the recent past. Mostly by those returning to their homeland.

What may seem the ideal sale or purchase is now turning into a nightmare for some. Why?

Because of the lack of understanding of the transfer system in Spain. Often money changes hands some papers are handed over or signed and everyone thinks that that’s it. Well it isn’t.

For those selling a vehicle it is important that the vehicle is legally transferred out of your name. Until this happens you are legally responsible for any fines, the suma and insuring the vehicle. If the vehicle is involved in an accident and there is no valid insurance you may be held responsible.

Moreover, if you sell a vehicle you have no control over the conduct of the buyer on the road which may lead to denuncias, prosecution or the vehicle being impounded, all while it is still registered in your name.

For those buying you don’t want to find that you are left with a vehicle that is not registered to you. You can’t pay the annual tax because it is sent to the original owner and you certainly cannot sell it or scrap it when the time comes.

So for the sake of getting it right there are some steps that should be taken to protect yourself if you are involved in such a transaction.

In the first instance there should be a contract of sale between the parties. This is legal confirmation of the agreement between the buyer and seller.

All the transfer paperwork should be signed by both parties. Both parties should also ensure that they have copies of the other parties NIE and Passport. Nobody can buy a vehicle if they do not have an NIE number.

Ensuring that you have someone oversee the transfer will help for both parties concerned.
Unfortunately, as with many things Spanish there are fees involved and it is often this aspect that leads to problems. The buyer doesn’t realize that there is transfer tax that needs to be paid and then cannot afford it so doesn’t do anything about it, leaving the seller as owner of the vehicle.

For some they are desperate to sell the vehicle and have really no concern about the consequences of the transfer not being done – why would they, they will not be here to deal with it.

For anyone thinking of buying or selling a vehicle they should ensure that they know what is required of them, how much it will cost and how it should be done.

It is a well known fact that Trafico are difficult to deal with but without the correct paperwork it is impossible, no matter what your explanation is.

RENTING A PROPERTY IN SPAIN

For many the renting of a property looks like a good option when either moving to or living in Spain.

However, before entering into any tenancy agreement you should get the content checked. Many rely on the word of the agent regarding the content, some just sign anyway.

It is only when things go wrong do people actually turn to the wording of a rental agreement and often they have a few surprises.

It is common to have an 11 month contract. Check to see whether there is any cancellation clause and whether or not the contract can be broken.

Problems with the condition of properties are not uncommon and attempting to deal with a Landlord can prove difficult.

Agents rarely want to become involved in any issue and tenants are often left to their own devices.

Whilst historically, landlords have just moved on and re-rented a property they are now exercising their rights to take proceedings against tenants who have vacated a property.

More often than not the tenants have "given notice" either verbally or in writing but usually in English and believe that that is sufficient. Often it is not.

Those facing court proceedings is increasing and any tenant should take care when thinking of leaving a property before the end of the rental period.

The cost of protection is very little compared to the liability that may be faced for a breach of contract.

NON RESIDENTS TAX SPAIN

Its that time of year again when those who do not permanently live in Spain need to consider their tax position.

For those who own a property it is a requirement to complete a Non Resident Tax Return. Failure to do so will result in a fine.

For those who have never completed a tax return they may say well i haven't been fined so why bother. True. However, the different departments dealing with tax and ownership of properties are linking up and it won't be long before they catch up.

Please remember that Spain has no money. Collection of taxes that should be paid but hasn't is an easy option and one that it likely to be easy to identify.

For anyone owning a property in Spain but who is not a tax resident they should now prepare to complete their annual tax return. It must be submitted before 31st December each year.

If you require further information then please contact Costa Blanca Lawyers at www.costablancalawyers.com