Spanish banks find themselves yet again in the limelight of another scandal. The Supreme Court has given them until 31st July 2013 to review the floor clauses in their mortgage loan contracts to evaluate whether or not they comply with transparency requirements. If the outcome is negative, the clause must be eliminated altogether.
This year has definitely made its mark when it comes to changes in law and this month is no exception. Get comfortable while I inform you of the modifications that have been made to urban rental laws (more specifically to long-term lets).
The Spanish property market has suffered greatly since 2008 and is characterized by a large volume of property for sale against a poor rental market. On average in Spain only 17% of property is rented out in comparison to approximately 30% throughout the rest of the European Union.
Energy Performance Certificates (EPCs) are three words we are going to be hearing a lot of in upcoming months. These certificates were introduced in the UK and many other European countries back in 2007 and now Spain must follow suit.
Real Decreto (Decree) 235/2013, 5th April was approved and came into effect on the 13th April 2013 and will be fully enforced from 1st June 2013 but what exactly is the certificate for and who is obligated to obtain one?
Continuing on from last month, now that you know the various types of contracts available to potential employees, the next step is to learn how to set one up. A code is required from the Social Security office to allow you to hire. From there as the employer, you become responsible for informing them of any new, cancelled or modified contracts and each month you must pay an additional Social Security contribution for that contract (an amount equivalent to approximately 40% of the employee’s salary), however your asesor can check to see if any reductions apply depending on the contract and the employee’s circumstances.
As a business owner you may know from the get-go that you need staff or the situation may arise during the busy season when you are run off your feet and could do with an extra set of hands and if you’re particularly lucky, your business will have grown to a point where you have no choice but to contract staff. There are plenty of horror stories doing the rounds about the pitfalls of hiring outside help or assurances that it isn’t necessary to give “official” contracts, you can just pay in cash.
