On April 25, 2024, the government of Spain activated the first aids for the agricultural and livestock sector. The Ministry of Finance and Public Function published the order in the BOE: it will be a 25% IRPF rebate for the livestock and agricultural sector as a result of the drought. Do you work in this sector? Learn here a little more about the IRPF reduction rebate and how it affects you!
How does the IRPF reduction for drought affect farmers and ranchers?
On April 25, 2024, the government of Spain activated the first aids for the agricultural and livestock sector. The Ministry of Finance and Public Function published the order in the BOE: it will be a 25% IRPF rebate for the livestock and agricultural sector as a result of the drought. Do you work in this sector? Learn here a little more about the IRPF reduction rebate and how it affects you!
On May 9, the Spanish government approved a measure to guarantee 20% of the mortgage for first-time homebuyers. It is believed that this measure may benefit more than 50,000 people: among family members and young people up to 35 years of age. To learn more about this State guarantee, stay until the end, go on!
How do endorsements work?
Simply put, a guarantor is a contract where one entity or person assumes the payment of a debt of another, in the event that the former is unable to pay. This person, known as the guarantor, agrees to fulfill the obligation from all assets. Of course, as long as a limit to the liability is not established.
For this type of contract to be valid there must be a written record. In addition, this may be for an indefinite or limited period of time and may be agreed to cover all or part of the debt.
What is the State guarantee recommended by the Spanish government about?
The Spanish Government recently approved a guarantee that will cover 20% of the mortgage for those who need to buy their first home. This is a measure aimed at people who are financially solvent, but do not have sufficient savings to afford the initial investment.
This means that, while the bank finances 80% – which is usually the most common – the State guarantee covers the other 20%. This allows people to take out a 100% mortgage.
How does the State guarantee work?
As we told you, the State will guarantee 20% of the mortgage as long as the client is unable to pay the mortgage due to a specific situation. This means that the State will not make an automatic disbursement of the money. Instead, it will only be an aid for particular situations.
What are the requirements to qualify for the State’s endorsement?
The Government, in the Council of Ministers, has raised a series of eligibility, economic and mortgage requirements. In the following image we show them to you, keep them for you or someone who needs them:
It should be made clear that the State guarantee only covers the principal loan: interest and initial expenses are excluded. In addition, it is important to know that the term of the guarantee is a maximum of 10 years regardless of the repayment term.
Will the State guarantee have a price limit to apply for?
The Government indicated that yes, there will be a price limit for those applying for the endorsement. However, they have not yet specified what the limit will be. But there was talk of the possibility that this maximum limit will be different between territories.
How and when will you be able to apply for this assistance?
The deadline for the application has not yet been announced, as the measure was only approved by the Council of Ministers on May 9.
Likewise, the dates for requesting it have not been announced. However, it is possible that you can apply for it directly at the bank where you process your mortgage.
Will you have to pay back the percentage that the State guaranteed you?
Since it is a guarantor, the government is not lending money, but will stand as guarantor for 20% of your mortgage. Therefore, since it is a 100% mortgage, you will have to pay back all the money requested.
As a consequence, the installments will be much higher, or the repayment period will be longer. This will cause the interest payment to be much higher.
What happens if a default occurs?
Pages such as Foto Casa have analyzed the issue of collateral and explain what would happen in the event of an alleged mortgage default. Of the cases proposed, the most feasible are:
In either case, it is advisable to ask the bank to renegotiate. It is possible to ask for a lower installment or to ask them to abide by their Code of Good Banking Practices.
Would you like to learn more about how the new State guarantee works? Get in touch with our managers and advisors at TAS Consultoría. Send us an email to our address tasconsultoria@tas-sl.es and our experts will be pleased to assist you. Contact us to request your free advice.
What is the new State guarantee and how will it benefit first-time homebuyers?
On May 9, the Spanish government approved a measure to guarantee 20% of the mortgage for first-time homebuyers. It is believed that this measure may benefit more than 50,000 people: among family members and young people up to 35 years of age. To learn more about this State guarantee, stay until the end, go on!
How do endorsements work?
Simply put, a guarantor is a contract where one entity or person assumes the payment of a debt of another, in the event that the former is unable to pay. This person, known as the guarantor, agrees to fulfill the obligation from all assets. Of course, as long as a limit to the liability is not established.
For this type of contract to be valid there must be a written record. In addition, this may be for an indefinite or limited period of time and may be agreed to cover all or part of the debt.
What is the State guarantee recommended by the Spanish government about?
The Spanish Government recently approved a guarantee that will cover 20% of the mortgage for those who need to buy their first home. This is a measure aimed at people who are financially solvent, but do not have sufficient savings to afford the initial investment.
This means that, while the bank finances 80% – which is usually the most common – the State guarantee covers the other 20%. This allows people to take out a 100% mortgage.
How does the State guarantee work?
As we told you, the State will guarantee 20% of the mortgage as long as the client is unable to pay the mortgage due to a specific situation. This means that the State will not make an automatic disbursement of the money. Instead, it will only be an aid for particular situations.
What are the requirements to qualify for the State’s endorsement?
The Government, in the Council of Ministers, has raised a series of eligibility, economic and mortgage requirements. In the following image we show them to you, keep them for you or someone who needs them:
It should be made clear that the State guarantee only covers the principal loan: interest and initial expenses are excluded. In addition, it is important to know that the term of the guarantee is a maximum of 10 years regardless of the repayment term.
Will the State guarantee have a price limit to apply for?
The Government indicated that yes, there will be a price limit for those applying for the endorsement. However, they have not yet specified what the limit will be. But there was talk of the possibility that this maximum limit will be different between territories.
How and when will you be able to apply for this assistance?
The deadline for the application has not yet been announced, as the measure was only approved by the Council of Ministers on May 9.
Likewise, the dates for requesting it have not been announced. However, it is possible that you can apply for it directly at the bank where you process your mortgage.
Will you have to pay back the percentage that the State guaranteed you?
Since it is a guarantor, the government is not lending money, but will stand as guarantor for 20% of your mortgage. Therefore, since it is a 100% mortgage, you will have to pay back all the money requested.
As a consequence, the installments will be much higher, or the repayment period will be longer. This will cause the interest payment to be much higher.
What happens if a default occurs?
Pages such as Foto Casa have analyzed the issue of collateral and explain what would happen in the event of an alleged mortgage default. Of the cases proposed, the most feasible are:
In either case, it is advisable to ask the bank to renegotiate. It is possible to ask for a lower installment or to ask them to abide by their Code of Good Banking Practices.
Would you like to learn more about how the new State guarantee works? Get in touch with our managers and advisors at TAS Consultoría. Send us an email to our address tasconsultoria@tas-sl.es and our experts will be pleased to assist you. Contact us to request your free advice.
The answer to the needs of large companies is open innovation. The speed at which markets are evolving, the proliferation of new technologies and the resistance to change are forcing corporations to seek external solutions that are innovative, flexible and disruptive. But why does Spain stand out in open innovation? Find out here!
Spain stands out in open innovation: what is the current situation?
The answer to the needs of large companies is open innovation. The speed at which markets are evolving, the proliferation of new technologies and the resistance to change are forcing corporations to seek external solutions that are innovative, flexible and disruptive. But why does Spain stand out in open innovation? Find out here!
There has always been talk of digital transformation for small and medium-sized innovation offices. However, this idea of innovation is not very ethereal and solid, as it is difficult to recognize which are the technological trends that can be adapted to this sector. Do you want to know which are the innovation trends in professional offices? Stay with us until the end!
What are the keys for small and medium-sized innovation offices?
There has always been talk of digital transformation for small and medium-sized innovation offices. However, this idea of innovation is not very ethereal and solid, as it is difficult to recognize which are the technological trends that can be adapted to this sector. Do you want to know which are the innovation trends in professional offices? Stay with us until the end!
The contribution system for the self-employed in Spain has undergone significant changes in recent years. This being the case, the Spanish Government has implemented a series of modifications to improve the conditions of self-employed workers and adapt to the evolution of the labor market. However, even the self-employed are still evaluating whether this new contribution system for self-employed workers is really beneficial for them. Find out more here!
How the changes in the new contribution system for self-employed workers affect social protection
The contribution system for the self-employed in Spain has undergone significant changes in recent years. This being the case, the Spanish Government has implemented a series of modifications to improve the conditions of self-employed workers and adapt to the evolution of the labor market. However, even the self-employed are still evaluating whether this new contribution system for self-employed workers is really beneficial for them. Find out more here!
Spain and Germany are European leaders in energy storage, and their collaboration on innovative projects is laying the foundations for a more sustainable future. In this article, we will explore the energy storage technologies used in both countries and how they are paving the way to a greener economy. Read on!
Spain leads with Germany in energy storage in Europe
Spain and Germany are European leaders in energy storage, and their collaboration on innovative projects is laying the foundations for a more sustainable future. In this article, we will explore the energy storage technologies used in both countries and how they are paving the way to a greener economy. Read on!
Recently, a new measure has been announced that can help you with your tax duties. It is now possible to split and defer debts with the Tax Authorities up to 50,000 euros, which is a great opportunity for those who need more time to pay their taxes. We explain everything you need to know about this measure and how to apply for it. Keep reading and don’t miss any details!
Now you can defer debts of up to 50,000 euros in installments and defer debts with the Tax Authorities
Recently, a new measure has been announced that can help you with your tax duties. It is now possible to split and defer debts with the Tax Authorities up to 50,000 euros, which is a great opportunity for those who need more time to pay their taxes. We explain everything you need to know about this measure and how to apply for it. Keep reading and don’t miss any details!
Barcelona is consolidating as an important reference in the tech sector, and its technological innovation centers are proof of this. Technology hubs have become home to countless startups and innovative companies looking to boost their growth in a collaborative and highly specialized environment. If you want to know how they are transforming the landscape of any multinational in Spain, we invite you to read on!
Barcelona has become a magnet for technological innovation centers
Barcelona is consolidating as an important reference in the tech sector, and its technological innovation centers are proof of this. Technology hubs have become home to countless startups and innovative companies looking to boost their growth in a collaborative and highly specialized environment. If you want to know how they are transforming the landscape of any multinational in Spain, we invite you to read on!
Green hydrogen is becoming one of the most promising energy sources in the transition to a sustainable future in Spain. In addition, foreign direct investment is also coming to our country to take advantage of the potential of this resource. In this article, we tell you all about the Spanish green hydrogen boom and how it is attracting foreign direct investment to drive a more sustainable future. Read on to find out more!
How does the green hydrogen boom in Spain drive foreign direct investment?
Green hydrogen is becoming one of the most promising energy sources in the transition to a sustainable future in Spain. In addition, foreign direct investment is also coming to our country to take advantage of the potential of this resource. In this article, we tell you all about the Spanish green hydrogen boom and how it is attracting foreign direct investment to drive a more sustainable future. Read on to find out more!
Nowadays, having digital skills is essential to develop in the labor and social world. In this sense, Spain has managed to position itself in the top 6 countries with more digital skills in Europe, according to a recent report. In fact, 64% of the Spanish population has at least basic digital skills, thus exceeding the European average. In this article, we will explore the current state of digital skills in Spain, find out the details!
Spain in the top 6 countries with more digital capabilities
Nowadays, having digital skills is essential to develop in the labor and social world. In this sense, Spain has managed to position itself in the top 6 countries with more digital skills in Europe, according to a recent report. In fact, 64% of the Spanish population has at least basic digital skills, thus exceeding the European average. In this article, we will explore the current state of digital skills in Spain, find out the details!
