Posts Tagged ‘Foreign’

Foreign Notary Deed in Spain

Friday, August 3rd, 2012

A recent press release from the Consejo General del Poder Judicial (General Council for the Judiciary) reports an interesting ruling of the Spanish Supreme Court. The decision, of 19 June 2012, ratifies the one of the previous instance according the registration in a Spanish Land Registry of a deed of sale of an immovable located in Spain, notarized by a German Notary. Taking into account the rules of private international law the Supreme Court confirms the validity of the foreign deed in Spain as a basis for a Registry record.

In the instant case litigation arose from the sale of an apartment in Tenerife, which was acquired undivided by two German citizens. One of them sold his share to a third party with the consent of the other; the transfer was formalized by a German notary and the acquirer sought to have it recorded in the Land Registry of Puerto de la Cruz. The registrar refused, considering that the German document lacked full legal force in Spain; his decision was upheld by the General Directorate for Registries and Notaries, but rejected on appeal both by the Court of First Instance and the Audiencia Provincial, as well as by the Supreme Court.

According to the Supreme Court, a decision such as the one taken by the registrar and supported by the General Directorate cannot be approved under the current understanding of the freedom to provide services at the European Union level; also, to require the involvement of a Spanish Notary would mean an unjustified limitation to the freedom of transfer of goods. Article 1462 of the Spanish Civil Code, which applies in the case, equates issuing of a public deed with delivery of the sold thing; the provision does not require that the deed be granted by a Spanish Notary public, therefore a formally valid deed granted by a foreign Notary will have the same effect (in terms of equation with delivery) as one notarized in Spain. The Supreme Court believes that this interpretation matches the EU tendency to avoid duplication of formal requirements, once they have been fulfilled in a member State for a purpose identical or similar to that required in the State where the act thus documented aims to produce effects. To back this opinion the Court leans on the Commission’s Green Paper of December 14, 2010 entitled “Less bureaucracy for citizens: promoting free movement of public documents and recognition of the effects of civil status records”; on the consistency of the understanding with the Spanish regulation on foreign investments, which does not require that contracts be notarized by a Spanish Notary; and on Article 323 of the Spanish Civil Procedure Act, which accords full evidential effect to public documents formalized abroad when comparable to the Spanish “escritura pública” in as far as the role of the Notary is concerned, regardless of the formal differences.

Two members of the Court do nevertheless dissent with the idea that Article 1462 Civil Code allows for the same treatment to be granted to Spanish and foreign deeds, as, according to the provision, equation between the public deed and the delivery of the sold asset is excluded when the deed states (or it can easily be inferred) otherwise. In this regard, the differences between the German and the Spanish systems for the conveyance of ownership justifies the need for the intervention of Spanish Notaries: only they can safeguard the essential rules of the legal transfer of property that governs our country, which is that of título y modo (grounds of acquisition followed by the traditio or delivery)

A Guide for Foreign Companies Setting Up a Business in Britain and Overseas Employees Working Here.

Monday, February 27th, 2012

Our UK associates, LEA member firm HW Fisher has published A Guide for Foreign Companies Setting Up a Business in Britain and Overseas Employees Working Here.

The report includes information related to trading in the UK, setting up a subsidiary and permanent establishment. Tax information including VAT and personal Tax are also covered.

The full Guide can be found here: US to UK – for citizens and companies 2012

 

Foreign Companies Keep their Positive Rating of Spain’s Business Climate

Wednesday, October 12th, 2011

• Spain’s rating for 2011 is identical to last year’s, with 2.9 out of 5

• Investment prospects of foreign entrepreneurs for next year are very positive and improve compared to the previous year´s

Madrid, 15 September 2011. Spain’s Business Climate Barometer score for 2011, 2.9 out of 5, is identical to last year’s. This is one of the findings of the “Spanish Business Climate Barometer”. From a foreign investor perspective” report, prepared for the fifth consecutive year by INVEST IN SPAIN, in collaboration with the IESE Business School’s International Centre for Competitiveness (ICC). The barometer provides an overview on evolution of foreign entrepreneur prospects over the course of the last five years. (more…)

Foreign Direct Investment in Spain Triples in 1 Year

Tuesday, August 2nd, 2011

According to the United Nations Conference for Trade and Development (UNCTAD), foreign direct investment in Spain has tripled in 1 year, increasing by 177% to 25,000 million dollars.

The annual UNCTAD World Investment Report for 2010 has seen Spain rise to 14th place in the ranking for last year’s inward foreign investment, and is testament to the fact that the Spanish economy is beginning to recover since its fall in 2009.

Amongst other positive developments highlighted in the report is the fact that the global economy is gaining strength, with emerging countries increasing their direct investment to a record level in 2010.

Although global FDI flows are still around 15% lower than recorded before the financial crisis, foreign investment grew by 5% around the world to 1.24 billion dollars in 2010. The document acknowledges China alongside Russia and India has having become strong investors.

UNCTAD forecasts that FDI flows are expected to continue to grow in 2011 to 1.4 or 1.6 billion dollars. This increase should continue through 2012 and 2013, when flows could reach 1.9 billion dollars.

This could be a sign that investor confidence is coming back and hopefully heralds the beginning of a global recovery.

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