1. N.I.E: NUMERO DE IDENTIFICACIÓN DE EXTRANJERO - (Foreign Identification Number)
Why do I need a NIE?
A NIE is an identification number that is necessary for foreigners when carrying out procedures in Spain, for example: opening a bank account, buying a vehicle, obtaining a social security number, conducting economic transactions, doing tax returns, communications to the Tax Administration, etc.
Can the rental amount be changed?
Yes. During the term of the contract, the rent can be negotiated by the owner or the tenant at the end of each year of the contract, applying the Consumer Price Index (CPI) percentage variation to the corresponding rent.
Should I ask for the landlord´s consent to carry out reform on the house?
Yes, consent from the landlord is required. A tenant cannot carry out work that modifies the structure or fixtures & fittings of the house, without the consent of the landlord.
If the owner has not authorised work carried out on the house, at the conclusion of the contract, the owner may request that the tenant restore the house to its original state or keep the alterations made. In this case, the leasee cannot claim compensation.
If work carried out causes deterioration to the stability of the building, fixtures and fittings or the security of the dwelling, the landlord may immediately demand restoration of the house to its previous state.
Who is responsible for paying necessary maintenance costs on the rented property?
The owner is responsible for all repairs that are necessary to maintain the dwelling in a habitable condition (unless the damage is attributable to the tenant). Please note that in situations like this the landlord should not increase the rent.
The tenant is responsible for the cost of minor repairs to the house as a result of daily wear and tear.
Am I obliged to pay a deposit?
Yes. The payment of a cash security deposit is mandatory when a lease contract is formalised. The deposit is usually the equivalent of one months rent. The deposit for non-dwelling rentals is usually the equivalent of 2 months rent. The parties involved in the lease may agree to additional guarantees along with the deposit.
3. POWER OF ATTORNEY
Who can grant a Power of Attorney?
Any person of legal age, who is in full possession of their mental faculties. To grant a power of attorney, one should go to a chosen notary and present their ID and / or passport.
How many types of Powers of Attorney are there?
There are two types - General and Special Power of Attorney:
a. General Powers of Attorney: The person giving authorisation gives power of attorney to an Agent to act on their behalf in all or in some areas. Generally, the areas of power should be specified in the power of attorney contract.
The most common are:
- General Power of Attorney itself: The agent is granted extensive powers, including provision for all assets, including the purchase and sale of real estate and the mortgage for same.
- Power of Attorney granted for lawsuits: a lawyer is authorized to appear in a lawsuit on behalf of another person.
- Power of Attorney to Administer Assets: The agent manages the assets of the represented, but usually excludes acts of disposal, such as a sale or mortgage application.
b. Special Power of Attorneys: The agent is authorised to perform specific legal duties and limited to these duties, for example, sale of a property, acceptance of an inheritance, carry out a transfer, collection, etc. Of course, the representative may be authorised to carry out more than one act in a single Special Power of Attorney.
In reality, there are several different types of Powers of Attorney. However, there are situations in which such representation is not allowed, such as making a will (exceptional cases are allowed by some provincial legislation). All Powers of Attorney require specialised drafting and must be carried out in accordance with the law. Therefore, it is advisable to explain to the notary why and for what purpose the power of attorney is required. The notary in accordance with the law, will provide impartial advise on which category of Power of Attorney best meets the individual’s needs.
Can a Power of Attorney be nullified?
Yes. The person who has granted a power of attorney can annul or revoke it at any time. This can be done before any of the 3,000 (approx.) notaries that are located throughout Spain.
Does the Spanish power of attorney have international recognition?
Yes. The Spanish notary Powers of Attorney has international recognition if they have an administrative requirement that is called “apostille”. An apostille is a document included in the notarial public document that certifies the authenticity of public documents issued in another country. (The ‘Apostille of The Hague’ recognises the legal effectiveness of a Power of Attorney between countries that are signatories of the Hague Convention, which nowadays practically includes all the world).
Can power of attorney be sent between Spanish notaries?
Yes. The notary's electronic signature allows all notaries to immediately and securely send authorised copies of the Powers of Attorney electronically. This saves time and expense, and avoids the risk of possible loss of the documents.
Power of attorneys for the protection of the person
The Spanish legal system includes different legal processes to ensure that the wishes of a person who in the future may lack the capacity to express themselves is fulfilled. “Los Poders Preventivos” (Preventive Power of Attorney), “La Autotutela” (Appointment of Tutor) or “El Documento de Voluntades Anticipadas” are those Powers of Attorney most commonly used in this case.
A Preventive Power of Attorney (PPA), what is it?
A Preventive Power of Attorney is a notarial document that allows a person to appoint another to act on their behalf, representing their interests should they become incapacitated
Whoever grants a Preventive Power of Attorney should ensure that the person representing them is the actual appointed person, and not another. This Power of Attorney may be ended by judicial resolution dictated when the guardianship is constituted or later, at the request of the guardian themselves.
One of the great advantages of a Preventive Power of Attorney is that it allows management of the assets of the person who has become incapacitated without having to resort to a judicial incapacitation procedure.
How are General and Special Powers of Attorney different from a Preventive Power of Attorney?
A Preventive Power of Attorney can be general or special. The one you chose depends on the extent of the powers you want to grant the representative.
Are there different types of Preventive Powers of Attorney?
There are two types:
1. The agent can only act from the moment in which the authoriser becomes incapacitated, foreseen in the power of attorney contract.
2. The agent has power from the moment the Power of Attorney is granted, without having to wait until the authoriser becomes incapacitated and the power continues after the latter occurs. This type of Power of Attorney is more frequently used.
How is a Preventive Power of Attorney granted?
Like all Powers of Attorney, the Preventive Power must be drafted and authorised by a notary and recorded in a public deed. It will include the identity of the person who is to act as the agent and will clearly specify the powers that may be exercised, as well as how to carry them out.
The notarial Preventive Power of Attorney allows the assets of the incapacitated person to be managed without having to go through the judicial incapacitation procedure.
4. NON RESIDENTS INCOME TAX (IRNR)
Who is obliged to pay the tax?
People who are not resident in Spain, and have property in the country.
When a property is owned by a married couple or by several people, should they make a single tax payment or individual payments by each owner?
Each owner is an independent taxpayer, so they must file separate and independent returns.
When do I have to present it?
During the calendar year, following the date of accrual.