Real Estate and Urban Development Law -Real Estate Investments and Purchases and Sales

 

Over the years our firm has specialized in real estate transactions. Our most common clients are foreign nationals (although we also have a significant number of domestic clients) who wish to invest in the acquisition of real estate in Spain (mainly in the Balearic Islands, but also in the rest of the country) and in Switzerland (especially in the cantons of Valais, Vaud, Geneva and Fribourg).

We advise our clients on the purchase and sale of all types of real estate products, whether they are residential (apartments, villas, country villas, etc.) or commercial (hotels, restaurants, commercial premises, etc.). Our work consists of both representing our clients and protecting and defending their interests during the entire purchase and sale transaction, from the first visit until after the signing of the purchase of the property.

Once the transfer of property to our client’s name has been made, our services continue for as long as the client requires until all his expectations are met.

During the buying and selling process and once it is concluded, we take care of:

  • To provide information on the current real estate market situation, together with an updated price system based on the product and its future prospects.
  • To make a selection of the most interesting properties according to the specific needs of our clients.
  • To carry out a study of the legal and urban situation of each property, with the client’s interests at the forefront: we are concerned with confirming the ownership of the property, its cadastral and registry situation, its legality in accordance with urban legislation, absence of infringement proceedings, possible existence of registry charges (mortgages, liens, etc.).
  • Guide our clients in the visits to the properties of their interest.
  • To carry out a fair negotiation of prices and purchase conditions of each property.
  • To provide financial advice for the purchase of the property, after studying a wide range of entities in the sector, in search of the best financing option for our client.
  • Incorporate or acquire a company for the acquisition if the client does not wish to purchase the property in its own name. We can also take care of the management and representation of such company following the instructions of the client who owns it.
  • Drafting the necessary and relevant legal documentation for each transaction, preparation of contracts, public deeds at the notary’s office, powers of attorney, etc.
  • To make all the necessary changes after the purchase of the property, carrying out on behalf of our client all the complex and tedious visits to the offices of the different public administrations.
  • Advise our clients on the most advisable insurance policies for their new property (liability, theft, fire, etc.), offering them the best options in this market.
  • To recommend, at the request of our clients, the best professionals in the sector in the language they require: notaries, architects, banks, property maintenance companies, electricity, plumbing, decoration, furniture stores and all types of specialists required.
  • Contact all utility companies (electricity, water, telephone, gas, property managers, etc.) prior to the appointment with the notary, to verify that all payments are up to date. Our service also includes the change of ownership or the registration, as well as advice on electricity, water, gas, alarm, property administration, etc.

 

Ibiza real state layers

In the field of urban planning and management, we advise real estate developers in the entire process of land management, covering from the legal feasibility of the project to the full completion of the reparcelling actions. Throughout the whole process we assume the negotiation with the owners affected by the urban development project and with the competent administration, the drafting of the legal-urban documents, the relationship with the public registries and the coordination of the necessary steps for the correct obtaining of the licenses and authorizations that enable the buildings and the intended uses.

Likewise, in the field of real estate development, we provide advice on land acquisition, preparation and negotiation of detailed feasibility studies and on all legal and contractual obligations involved in the real estate development process (insurance, hiring of construction management and contractors, subcontracting, sales to clients, etc.). Tenemos amplia experiencia en la negociación de contratos de promoción, promoción delegada, Project Management y otros contratos relacionados con la promoción inmobiliaria, contratos de construcción y contratos “llave en mano”, contratos con Arquitectos, Ingenieros y otros técnicos que intervienen en el proceso de construcción, contratos de compraventa sobre plano, contratos con agentes inmobiliarios, etc. We also advise on compliance with the regulations applicable to the sale of homes by developers. We are also specialists in advising on legal structures to undertake real estate development processes: risk analysis, tax optimization, etc.

 

 

We also provide advice in expropriation proceedings, assisting public administrations, beneficiaries and affected parties in the development of the same. This intervention involves legal and economic advice on the project, registry and cadastral research of the properties and rights affected, technical assistance in the preparation of records, the drafting of the documents included in the files and the drafting of allegations and the filing of appeals.

Our professional specialization in the various legal matters involved in real estate transactions and our in-depth knowledge of the practices of the sector allow us to provide advice in the different areas of this activity: purchase and sale of real estate and real estate companies, leases, development and construction contracts, real estate financing and legal configuration of large properties.

We specialize in the legal aspects of all types of real estate (office buildings, shopping centers, industrial and logistics warehouses, hotels, retirement homes, residential estates, golf courses and marinas), with specific knowledge of the legal aspects to be considered in their sale or acquisition, as well as in the financing of real estate projects and the constitution of guarantees. We also complement this experience with advice on the other legal specialties that may be affected (tax, labor, competition, etc.).

We negotiate all kinds of leasing contracts, for all types of real estate and premises (commercial in mixed-use buildings, commercial premises in shopping centers, industrial warehouses, logistics warehouses, offices, etc.), as well as hotel management contracts, real estate management contracts or contracts relating to senior citizen residences, among others.

Our firm has experience in the analysis of alternatives for the constitution of horizontal property regimes and real estate complexes in shopping and leisure centers, hotel, residential, mixed and senior citizen residences and in the preparation and negotiation of all the necessary legal documents (minutes of deeds for the constitution of horizontal property and real estate complexes, segregation, grouping, aggregation and new construction, bylaws and internal regulations, etc.).

Legal advice in the acquisition, sale and rental of pleasure boats and in the management of moorings.

 

Mooring Management in Mallorca

Our scope of action is the entire Spanish Mediterranean coast, including the Balearic Islands and Lake Geneva in France and Switzerland.

On behalf of and/or in representation of our clients we take care of:

  • Preparation and management of contracts for the purchase and sale, rental, construction and repair of boats.
  • Tax advice on the acquisition, ownership and operation of pleasure boats.
  • Vessel registration.
  • Integral advice on crew matters.
  • Purchase and rental of moorings.
  • Arrest of vessels for maritime debts.
  • Judicial and extrajudicial management of claims for naval incidents (collision, salvage, theft and stranding).
  • Advice and representation in administrative proceedings initiated by maritime and port authorities.

Mooring management in Mallorca.

Mooring management in Mallorca refers to the administration and allocation of mooring spaces for boats in the ports and marinas of the island of Mallorca, Spain. Mallorca has numerous ports and marinas that offer mooring services for recreational and commercial vessels.

Some of the most important ports and marinas in Mallorca are:

  1. Port of Palma: It is the main port of the island and one of the most important in the Mediterranean. It has different docks and mooring areas, as well as a wide range of services for boats.
  2. Puerto Portals: Located on the southwest coast of Mallorca, it is known for being one of the most exclusive marinas in the Mediterranean. It offers berths for luxury yachts, as well as a variety of nautical services and entertainment options.
  3. Puerto Adriano: Located in the southwest of Mallorca, this is another high-end marina offering moorings for boats of different sizes. It has high quality services and a wide range of restaurants, stores and other services.
  4. Port of Alcúdia: It is located in the north of the island and is one of the largest ports in Mallorca. It offers moorings for sport and commercial boats, as well as basic services for sailors.

The management of moorings in Mallorca is carried out through the port authorities and marinas, which manage the availability of spaces, assign moorings to boats and charge the corresponding rates or fees for their use. Boat owners interested in obtaining a mooring in Mallorca can contact the port authorities or marinas directly for information on availability, prices and requirements.

It is important to note that the availability of moorings in Mallorca may vary according to the season, as the island is a popular destination for yachting. Therefore, it is recommended to make the mooring management procedures well in advance and check the updated availability before planning any trip or stay in Mallorca with a boat.

Corporate law and commercial contracts

 

Commercial Law

We have extensive experience in advising real estate and hotel companies, either as legal advisors or participating in the board of directors of commercial companies, advising on the design and execution of complex corporate operations, as well as in the vicissitudes and conflicts arising from the management of such companies.

We provide, among others, the services of incorporation of companies, statutory reforms and corporate restructurings.

 

 

Corporate law

We participate in the drafting and negotiation of all types of business contracts, advising the contracting parties, depending on their legal nature, their terms and conditions, together with the various means of ensuring compliance with them. We analyze and interpret contracts, issuing legal opinions on their validity, scope and content.

We offer specific solutions for the legal and tax problems posed by family businesses with extensive real estate assets, also taking into account the different personal, family and professional interests that intersect in this area.

We have also developed extensive experience in mergers and acquisitions, advising clients around the world in all types of acquisitions of majority or minority shareholdings.

Banking and Finance Law

Banking Law

We advise borrowers and financing banks in the structuring, due diligence and formalization of real estate project finance transactions.

In this type of operations, we advise in the preparation and negotiation of project contracts and in the structuring of financing alternatives and their guarantees, with tax and other cost optimization.

We are specialized in the area of consumer banking, in mortgage financing operations.

 

Banking law in Spain

Banking law in Spain refers to the set of rules, regulations and laws that govern the activities of banking entities and the relationships between banks and their customers in the financial sphere. Some key aspects of banking law in Spain are as follows:

  1. Legislation and regulation: The legal and regulatory framework for banking law in Spain consists mainly of the Law on the Regulation, Supervision and Solvency of Credit Institutions, which establishes the requirements for the incorporation and operation of banks. In addition, the Bank of Spain, as the supervisory body, issues regulations and guidelines for the banking sector.
  2. Banking contracts and products: Banking law regulates financial contracts and products offered by banks, such as checking accounts, deposits, loans, mortgages, credit cards and other financial instruments. These regulations aim to protect the rights and interests of customers and ensure transparency in the marketing of banking products.
  3. Consumer protection: In Spain, there are specific laws and regulations that seek to protect consumers in their dealings with banks. The Consumers and Users Law, for example, establishes the rights of bank customers, including the right to receive clear and transparent information, the possibility to complain and protection against abusive practices.
  4. Supervision and control: The Bank of Spain is responsible for the supervision and control of the banking system in Spain. Its objective is to guarantee the stability and solvency of credit institutions and the protection of depositors.
  5. Bank resolution: In the event of financial problems or insolvency of a bank, Spanish banking law also establishes procedures for the resolution, restructuring or liquidation of banks to protect the interests of depositors and maintain the stability of the financial system.

Tax and Financial Law

The objective of our tax advice is to optimize the tax situation of both domestic and foreign companies and individuals, within the real estate field, by establishing efficient structures, taking advantage of the tax advantages that the tax system offers, analyzing the regulatory changes that occur within the tax field and accompanying our clients in their domestic and international investments to offer them comprehensive advice on tax matters regarding their real estate assets.

We also offer comprehensive solutions to family businesses, providing services aimed at the application of existing tax benefits for such companies and their partners and to foundations and non-profit entities with extensive real estate assets.

On the other hand, we address the situation of large real estate assets through the search for specific and individualized solutions that minimize, strictly within the current legislation, their tax cost.

Taxation Mallorca

Taxation and Taxation in Spain

In Spain, the taxation of large fortunes is regulated by different taxes and regulations. Some relevant aspects on this subject are described below:

  1. Wealth Tax: In Spain, there is a Wealth Tax, which is levied on the ownership of assets and rights of individuals. This tax applies to those taxpayers whose net worth exceeds a certain threshold established by law. The law allows the autonomous communities to establish their own rules and tax rates within certain limits.
  2. Inheritance and gift tax: This tax is levied on gratuitous transfers of goods and rights, either by inheritance (succession) or by donation. Each autonomous community has the power to establish its own tax rates and exemptions in this tax, which can lead to significant differences in the taxation of large fortunes in different regions of Spain.
  3. Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas, IRPF): IRPF is the tax levied on the income of individuals. In Spain, there is a higher marginal rate bracket for higher incomes, which means that large fortunes are subject to a higher tax rate.
  4. Taxation of investment and capital gains: Capital gains obtained from the sale of assets, such as shares, real estate or other financial assets, are subject to taxation in Spain. There are different tax regimes depending on the type of asset and the length of time it is held, which can affect the taxation of large fortunes.

It is important to note that the taxation and taxation of large fortunes may be affected by legislative changes and updates in tax regulations. In addition, there are different tax planning strategies and legal structures that can influence the tax burden of such large fortunes.

 

Switzerland Taxation

Taxation and taxation in Switzerland

Switzerland is known for its favorable tax system for individuals and companies. Broadly speaking, taxation and taxation in Switzerland is as follows:

Switzerland has a federal tax system, which means that taxation is governed at the federal, cantonal (state) and municipal levels. Each canton and municipality has the authority to set its own tax rates and tax regulations, which can result in significant differences in taxation between different regions of Switzerland.

  1. Income Tax: Income tax in Switzerland is based on the principle of individual taxation, which means that each person is taxed individually based on his or her income and wealth. Income taxes vary between cantons and municipalities, and tax rates tend to be progressive, meaning that higher income brackets are subject to higher rates.
  2. Corporate Income Tax: In Switzerland, corporate income tax is levied on companies at both the federal and cantonal levels. Corporate income tax may vary depending on the type of company and its location in Switzerland. Some cantons have lower corporate tax rates to attract investments and companies.
  3. Value Added Tax (VAT): Switzerland has a value added tax (VAT), which is levied on most transactions of goods and services. The general VAT rate in Switzerland is 7.7%, but there are reduced rates of 2.5% and 3.7% for certain goods and services.
  4. Privileged tax regime: Some Swiss cantons offer privileged tax regimes for certain economic activities, such as international service companies or holding companies. These special tax regimes may provide tax benefits and tax reductions to companies that meet certain requirements.

Administrative Law

Administrative Contracting

Major real estate projects have an important component in public law, which in many cases determines the very viability of the investment project .

From our Administrative Law area, we provide specialized legal advice to public sector entities, private companies and individuals in the design of this type of projects.

We prepare reports and opinions, carry out negotiations and assume the legal defense in administrative and contentious-administrative proceedings of all kinds in the real estate and urban planning sectors.

On the other hand, administrative contracting has an increasing impact on the general economic activity, so we offer comprehensive advice on this matter, including not only the analysis of the applicable regulations and the most appropriate contracting procedures and systems for each case, but also the monitoring of the execution of the contract and the incidences of its liquidation.

Administrative Law

FAMILY LAW AND REAL ESTATE ASSET MANAGEMENT

The economic fabric of most developed and developing countries is made up of a large number of family-owned companies with large real estate assets, which pose specific problems mainly related to corporate governance, management, ownership and succession.

Our objective is to respond to the needs of the family business, providing concrete and customized solutions for each type of company and family. Thus, we elaborate family protocols and agreements between partners, we provide advice in the restructuring of family groups, in the governing bodies of both the company and the family (Family Assembly, Family Council), in tax planning, in mediation in family conflicts and in succession planning.

 

Family Law

In our Wealth Management area, we provide legal advice on wealth management, working with a clear focus on the client, who requires an individualized and highly specialized service that often has an international component due to having assets or family relationships linked to different jurisdictions.

Within this advice we can highlight the planning and advice on tax matters, with special emphasis on taxes related to real estate investment, especially for properties in profitability and in Civil Law, with special emphasis on family and inheritance matters.

The great Fortunes

The management of large fortunes in Spain involves a series of considerations and strategies to efficiently manage the financial assets and wealth of individuals with a high level of wealth. The following are some relevant aspects in the management of large fortunes in Spain:

  1. Tax planning: Tax planning is essential to optimize the tax burden of large fortunes. It involves the design of efficient tax structures and the use of available legal tools to minimize the impact of taxes. This may include the use of specific investment vehicles, succession planning, optimization of deductions and tax benefits, among others.
  2. Investment diversification: Investment diversification is key to managing large fortunes. It involves the allocation of financial and equity assets into different asset classes, such as stocks, bonds, real estate, alternative investments, etc. This helps reduce risk and maximize long-term returns.
  3. Risk management: Risk management is critical in managing large fortunes. This involves identifying and assessing potential risks that may affect equity, such as financial, legal, tax or market risks. Strategies are implemented to minimize such risks, such as taking out appropriate insurance, developing sound legal structures and diversifying investments.
  4. Financial and legal advice: Large fortunes usually require specialized financial and legal advice. We look for experts in wealth management, investments, taxation, inheritance and other relevant fields. These professionals provide personalized guidance and expertise to help make informed financial and legal decisions.
  5. Succession planning: Succession planning is an essential aspect of wealth management. It involves the preparation and design of an appropriate succession plan to ensure the efficient transfer of wealth to future generations, minimizing the tax burden and respecting the wishes and objectives of the individual or family owner.

Private International Law: Residence and Nationality

 

Residence in Spain due to the purchase of a home, economic investment or business creation.

We have experience in obtaining residency in Spain for our clients for the purchase of a home (with an investment of a value equal to or greater than 500,000 euros per applicant in real estate of 500. 000 free of any liens or encumbrances), economic investment (an initial investment for a value equal to or greater than 2 million euros in Spanish public debt securities, for a value equal to or greater than one million euros in shares or stock in Spanish companies, or bank deposits in Spanish financial institutions) or business creation (a business project to be developed in Spain and which is considered and accredited as being of general interest).

In relation to the above, we provide personalized and specialized advice for all types of formalities and procedures regarding residence and nationality: long or short term residence permits with or without economic activity, settlement permits, family reunifications, procedures for obtaining nationality by marriage, naturalization procedures, procedures for regaining citizenship or nationality, etc.

Residence in Switzerland and Tax Forfait

Switzerland

 

Foreigners settling in Switzerland for the first time or after an absence of at least ten years and who do not exercise a lucrative activity in Switzerland (self-employed or employed), have the option to pay their taxes through a special regime called “Tax Forfait” (most common denomination), “Swiss Living Expense Tax” or “Swiss Expenditure Tax”. This special regime is applied in lieu of the more common ordinary taxation based on the taxpayer’s worldwide wealth and income. One or more gainful activities carried out abroad are perfectly compatible with the tax credit as long as the taxpayer’s real domicile remains in Switzerland.

 

The main characteristics of the tax credit are as follows:

  1. The taxable income is determined on the basis of the expenses generated by the taxpayer’s lifestyle in Switzerland (rather than on the worldwide wealth/wealth and income). In practice, the amount corresponding to these expenses is fixed after negotiation with the tax authorities of the Canton where the taxpayer resides.
  2. Foreign citizens subject to the tax forfait must only declare their income obtained in Switzerland (income from real estate located in Switzerland, income from movable objects located in Switzerland, income from movable capital constituted and located in Switzerland, income from copyrights, Swiss income and pensions, etc.) and their wealth located in Switzerland (foreign securities are considered as foreign wealth or fortune, even if they are deposited in a Swiss bank). In principle, foreign income should NOT be declared.
  3. The sum or amount resulting from the taxable income calculated on the basis of the taxpayer’s living expenses or living expenses in Switzerland (tax forfait) must not be less than the sum of the taxpayer’s Swiss source income. A comparative calculation must be made and, if the Swiss-source income is higher than the fixed forfait on expenses or the standard of living in Switzerland (tax forfait), the tax is determined on the basis of the former.
  4. Tax forfait taxpayers resident in Switzerland can in principle benefit from Double Taxation Conventions, although some double taxation conventions agreed by Switzerland with other countries (Germany, Austria, Belgium, Italy, Norway, Canada and the United States of America) require that tax forfait taxpayers include in their Swiss tax return all income or yields from the foreign country in question in order to benefit from the convention. If the taxpayer elects to include such income in his return, it will be included in the comparative calculation described in the previous point.
  5. The tax forfait does not replace inheritance and gift taxes (although most Swiss cantons have abolished inheritance and gift taxes between relatives in the direct line and between spouses, and in the cantons that have not abolished them, the tax rate is – with a few exceptions – quite low).