The Share Purchase Agreement: Signing and Closing
The purchase agreement of corporate shares or holdings is a document that establishes conditions that will govern the transfer of the company and it applies to all forms of non-listed companies.
Taxation on the transfer of branches of activity
Although the sale of assets is generally subject to Value Added Tax (IVA) and Capital Transfer and Stamp Tax (ITPyAJD), the transfer of a complete branch of activity or business in Spain has flexible taxation.
Financial assistance rules in Spain
In Spain, article 143 of the Capital Companies Act regulates financial assistance to limited companies and article 150 to public limited companies. The current prohibition prevents a company from contributing financially to the acquisition of its own shares or stocks by a third party.
Contractual guarantees in Spain: the personal guarantee
Personal guarantees include personal securities, which can be characterized as an ancillary obligation, since it depends on the main obligation, and as a subsidiary obligation as well, in that only if the principal debtor fails to comply is it possible to demand payment of the debt from the guarantor.
Enforceable contractual guarantees: the bank guarantee payable on first demand
Among enforceable personal contractual guarantees, the bank guarantee payable on first demand stands out. With this type of guarantee, a banking institution commits to respond to the fulfilment of an obligation, automatically and immediately, and without the ability to demand clear evidence of noncompliance.
The contract guarantees in Spain
Contract guarantees are types of contracts that provide greater security to the settlement of a debt. In Spain there are different types of guarantees: personal guarantees, security rights, financial guarantees or constitutional guarantees.
The Concept and Contents of Partnership Agreements in Spain
While company by-laws govern a company’s activity and are public, partnership agreements are private agreements that govern, among other things, the organizational aspects of the company. However, partnership agreements may be made public at the request of any of the partners.
Remedies Against Breach of a Shareholder’s Agreement
Under Spanish Law, there are different options to seek compensation for breach of a shareholder’s agreement, which are agreements that, although not mandatory, are highly recommended since they prevent future problems between partners and a company.
The pledged stock of boats: a practical guarantee for dealers and financial institutions
The Law on Chattel Mortgage and Pledge without Transfer of Possession provides for the pledge stock of boats as a guarantee. Its objective is to facilitate credit to dealers to ensure compliance with the obligations of financial institutions.
Real estate investment companies increase their profits
In 2015, large real estate investment firms tripled their profits compared to the former year. Their profitability through dividends and the recovery of the real estate sector in Spain predict new profits once again this year for these investment vehicles in real estate assets for rent.
