If you bought a house in Spain in the past with a mortgage there is some very good news. The banks were ordered to pay the money they will have charged you for the Notary costs and taxes of giving the mortgage. They appealed however and won in the Spanish Supreme Court but the case is now going to the European court and it seems that the banks will lose. (The particular court case is just about the tax on mortgages, all of the other notary and registry costs they have been ordered to pay)
If you have arranged a mortgage in the last four years you can try claiming it back off Hacienda (The Spanish tax office) and if it was prior to that then you can try claiming from the bank (And they are obliged to give it to you but they will usually refuse) All future mortgages in Spain now fall under a new law obliging the bank to make this payment of taxes.
Now, of course claiming it back is time consuming, you have to do it in Spanish and you will be given the runaround by either the banks or the tax office to get it back, so there are companies such as El Reclamador which will make the claim for you for a fee (Usually 20% of the returned money plus interest) or Arriaga Asociados who say there is no fee but there is a sign up of 150 Euros plus other costs which usually come to around 600 Euros in total as far as we can make out by doing a bit of detective work online. Again they work in Spanish and we have designed this process now to work in English for you.
We are now able to offer this service to our clients in and around Valencia through an agreement with a legal service here in Valencia and we will be expanding to include the whole of Spain in the near future. We have already started the process of contacting all of our clients who have taken out a mortgage directly as we now have this service up and running but if you want us to contact you about this then be sure to message us by sending us a mail and we will keep you informed (In case we miss any of you)
Take a look at the story in the link here (In Spanish) where there is a calculator to work out how much you can claim back.
If you don’t hear from us then just wait a bit as we are monitoring the legal process being heard in Europe. However, jurisprudence, the fact that the new government has changed the law to make the Spanish banks pay the costs in all future mortgage arrangements and two already firm decisions in the Spanish courts are favouring claimants and many judges are ordering the banks to pay out the taxes in full along with the mortgage costs and all court and legal costs of the action. It may well be worth your while looking into claiming back from your bank and we can do that for you.
What we need from you is simple.
- A copy of your mortgage deed. (We suggest sending us a digital copy in your mail but if you don’t have this then scan and send us a PDF copy of your mortgage deed)
- Full contact details (Your mail and phone numbers so we can contact you and your NIE and/or passport numbers for the contract and POA)
- Contact details of your bank branch where you were provided with the mortgage.
If we agree to take on your case, i.e, if it is worth it for you, then we will charge an admin fee of €200 to start the process. Within this fee we will include the Power of Attorney for us to make the claim on your behalf with the bank and through the courts. You will then pay nothing more until the case is resolved. The process may take up to a year if the bank is recalcitrant but is generally quicker. We look forward to hearing from you.
And if you liked this post then you may also like our other posts helping you to save lots of money. Just click on the images or link to read them.