Spanish Corporate – Real Estate Legal Update Nº 34

    View Authors July 2017

    Welcome to the latest issue of our Spanish Corporate-Real Estate Legal Update where you can find relevant information related to Corporate-Real Estate.

    This issue contains the following articles:

    Guipúzcoa and Álava Modify the Municipal Capital Gain Calculation Method to Adapt It to Recent Constitutional Court Judgments

    Recent Constitutional Court (TC) judgments regarding the Tax on the Increase in Value of Urban Land (municipal capital gain) have declared that the method used to calculate municipal capital gain under Guipúzcoa and Álava regional legislation (subsequently extended to state regulations) is contrary to the constitution. As a result, these territories have amended their respective regional laws in order to adapt them to the content of the aforementioned judgments.

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    MAB Circular Toughens the Requirements for the Inclusion of SOCIMIs

    On  April  11, the Alternative Equities Market (MAB) published Circular 1/2017, amending Circular 14/2016, on the applicable requirements and procedure for joining and being excluded from the Alternative Equities Market of shares issued by Expanding Companies and Publicly Traded Limited Liability Companies in the Real Estate Market (SOCIMIs). Circular 1/2017 will enter into force on 1 August 2017. 

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    New Regulation on Urgent Measures for Financial Matters for Credit Cooperatives

    On  June 25, 2017 Royal Decree-Act 11/2017 of 23 June entered into force, on urgent measures for financial matters (hereinafter, the "Royal Decree"). It modifies some of the provisions included in Act 13/1989 of 26 May, on Credit Cooperatives; Royal Decree-Act 16/2011 of 14 October, thereby creating the Deposit Guarantee Fund of Credit Institutions; Act 11/2015 of 18 June, on the recovery and termination of credit institutions and investment services enterprises; and the Recast Text of the Securities Market Act, approved by Royal Legislative Decree 4/2015 of 23 October. 

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    New Royal Decree-Act 5/2017 of 17 March Amends the Protection Policies of Mortgage Debtors

    On 19 March, Royal Decree-Act 5/2017 of 17 March entered into force, amending Royal Decree-Act 6/2012 of 9 March, concerning urgent measures for the protection of mortgage debtors without resources, and Act 1/2013 of 14 May, concerning measures to strengthen the protection of mortgage debtors, debt restructuring and low-income rent (hereinafter, the “Royal Decree”). It deals with the mortgage restructuring of those who suffer from major difficulties to make payments, and it attempts to facilitate and provide more flexibility in foreclosure procedures, such as expanding the suspension period of eviction or making it possible to execute more flexible mortgage policies after having expanded the number of possible beneficiaries and facilitating preferential leases.

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    Application of the European Regulation on Cross-border Insolvency Proceedings

    With commercial activities increasingly having an impact across borders in the European market, it has become increasingly necessary to introduce supranational legislation to regulate those activities. In particular, there is a need to make cross-border insolvency proceedings convenient, consistent, effective and efficient across Europe. 

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    The Constitutional Court Rules on the Cancellation of the Municipal Capital Gain When There Is No Increase in Value

    Constitutional Court (Plenary session), Judgement 59/2017 of 11 May

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    The Supreme Court establishes the Criteria on imposing Procedural Costs in the event of invalidity of Interest Rate Floor Clauses

    Supreme Court (Civil Chamber 1) Judgement No. 419/2017 of 4 July

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    The Supreme Court Rules in Favour of Lessees of Publicly Promoted, Government-subsidised Housing

    Judgement number 290/2017 of the Supreme Court, Civil Chamber No 1, of 12 May

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