De Cotta Law - Official Blog

Building In The Spanish Countryside

How many times have we asked ourselves the following question: If I own some land in the countryside, why am I not allowed to build what I choose on this land?

 The explanation to this question is provided for in the Legislation de la Comunidad Autónoma de Andalucía. This helps detail what is possible when it comes to building in the Spanish countryside (building in the Spanish campo).

Fundamentally, the object of this legislation is to ensure the continued sustainable and united development of urban areas which are socially economic, cultural and already have basic facilities like roads, water and electricity in place, and to protect the areas of countryside to guarantee a better way of life in Andalusia. The Comunidad Autónoma de Andalucía wants to avoid the growth of widely-dispersed properties in the countryside where basic services like roads, water and electricity are not available, and where the cost of installing these services is too great. Obviously it is more practical to improve upon or maintain services within an already established urban area.

Consequently, this limits the type of construction permitted in non urban areas (known locally as the “campo”). Principally, this type of land is limited to agricultural use, the keeping of livestock, forestation, and for the use of hunting.

Subsequently any construction of property must be linked to the above-mentioned uses and prior to carrying out any form of construction (ie barns, stables, storehouses) the appropriate licences or authorisations must be obtained from the relevant authorities. In order to be granted authorisation you must validate the necessary use/construction.

On these non-urban areas, land cannot be segregated unless it is to be designated for agricultural use, the keeping of livestock, forestation, hunting, or that which fulfils the current law’s limitations.  These limitations can vary depending on the type of land, whether it will be irrigated or not, or it can depend on the local area where the land is situated.

In addition to the above, the law allows a main farmhouse or family dwelling to be constructed in these areas. However in order to construct such a dwelling, it must fall within the following stipulations:

-         The land on which it is built must be used for agricultural use, forestation or for the keeping of livestock. You are required to prepare a “Proyecto de Actuación” validating said use and proving that you have sufficient land required to undertake such activity.

-         There will be a maximum build size within which the property must remain. You would not be permitted to build a property to any size or height that you desire.

-         You must also prove that your profession will be in association with one of the above activities, ie that you are a farmer and that you will be able to run and maintain such a profession. You must also be registered as a resident with the local Town Hall.

Other types of permitted activities on this type of land are the conservation or renovation of existing buildings or ruins.  The renovation of these types of buildings is somewhat limited, however not prohibited.

Lastly, further permitted are any constructions or works that are of public interest, ie the implementation of infrastructures or services (roads, petrol stations or prisons etc) or temporary buildings of public interest such as restaurants or rural hotels.

In conclusion, the legislations that the ayuntamientos (Towns Halls) have in place to regularise the types of activities allowed in the campo are to ensure the preservation of the natural areas, avoid the formation of widely-dispersed areas of population in the countryside and to secure the possibility of infrastructure and areas of public interest.

Any persons who own land in the campo and who wish to construct or renovate a property must obtain the necessary licences from the authorities and they must be able to prove that their planned activity is in connection with agricultural use, forestation or the keeping of livestock.  As you can see, there are many restrictions in place and the circumstances are very limited.

To make an appointment for a private consultation, please contact us at De Cotta Law, De Cotta McKenna & Santafé on:

Tel.: +34 952 931 781
Fax: +34 952 933 547

Do You Want To Set Up A Business In Spain?

Are you considering working or setting up some form of business in Spain? Once you have decided what kind of business or work you will carry out it is important to decide whether you will be self employed known in Spain as autónomo or whether you will set up a company such as a limited company in the form of a sociedad limitada (“S.L.”) or sociedad civil (“S.C.”) or a larger scale company known as a sociedad anónima or S.A.

The decision on which to opt for will be influenced on what kind of business you will carry out. If you intend to work individually and charge clients for the work you carry out then initially it would be appropriate to register yourself as a self-employed. In order to register you will have to apply for your N.I.E. at the Policia Nacional and then register at the Spanish Tax office (“Hacienda”) and the Department of Social Security (“Oficina de Seguridad Social”) under the category of Self-employed workers. You must register with Seguridad Social within thirty days after you are registered at the Spanish Tax office. As a self employed worker you are obliged to pay social security on a monthly basis with the minimum amount per person starting at 238.78 euros a month (beginning of the year 2008).

If you are going to work with somebody as a partner or director in the business then it is appropriate to consider setting up some form of company. The primary difference between an S.C. and an S.L. is that for an S.L. the liability of the company is limited to the share capital, unless the directors have been grossly negligent, whereas for an S.C. any liability is against the partners of the S.C and any assets the S.C. or the partners have individually. In addition to the liability aspect, for an S.C. the partners are taxed individually on the S.C. ’s earnings whereas for an S.L. the partners are taxed on their salary and dividends at one rate of tax and the profits of the company are taxed at another rate. An S.L. can be set up with one shareholder and has an additional duty to prepare and deliver annual accounts at the provincial companies house.

An S.A.is a company, which has a minimum share capital of 60,101.21 euros and its shareholders are usually individuals who are not necessarily involved in the running of the business whereas in an S.L. the shareholders in all likelihood would be.

At De Cotta McKenna y Santafé we can provide you with a One Stop Business Service and can deal with all aspects of your business so that you do not have to go to a gestor for social security payments, an economista for tax returns and a lawyer to review your contracts of employment.

If you are already in business or considering setting up a business and would like us to provide you with a quote for dealing with your social security returns, payment of company and individual taxes, auditing of accounts, preparation of employment contracts, registration of trademarks and logos and advice on business & employment disputes then we would be happy to discuss your business objectives with you.

 The tax and legal implications of setting up a business vary between the Spanish mainland, its Islands and Gibraltar,

so for more information on this subject, or to make an appointment for a private consultation, please contact us at De Cotta McKenna & Santafé on:

Tel.: +34 952 931 781
Fax: +34 952 933 547

Franchises In Spain - How To Expand A Successful Business

Born in North American, the business practice of franchises have experienced spectacular development in the last few decades. The franchise concept is proving itself as one of the techniques preferred by businesses to expand their business wings and is particularly appealing to smaller business enterprises.

The franchise is a method of business cooperation between independent companies in that one of them named the franchisor, an owner of a determined brand, patent, method of production or industrial activity which has triumphed in the consumer world, grants to another company, the franchisee, the right to carry out its business for a period of time in a defined area under certain conditions and under an element of control from the franchisor in exchange for a financial agreement whereby the franchisor is usually paid an initial upfront payment complemented by successive payments according to sales completed.

Taking into consideration the above and the concept of the franchise, before these can be sold the franchisor, would have to overcome the following: introduced a successful business concept during a reasonable period of time prior to the launch of a chain, be the owner of various rights, trademarks and signs that his clients recognise him from as compared to his competitors and provide to the franchisees continued commercial and technical assistance and an introduction to the businesses model that has worked so well for him. All of this would be provided during the term of the franchisees contract.

When entering into contracts the franchisor should protect his business interests by inserting clauses of non-competition and of confidentiality in order to prevent the dissipation of invaluable commercial knowledge and information known as “know-how” during and after the contract.

The advantages that the franchise system offers the franchisor are the ability to expand rapidly without substantial capital investment or the need to employ employees, less commercial and financial risks and more opportunity to concentrate on sales.

The entrepreneur who wishes to take on a franchise project will need to patent their brand as well as all of its distinctive commercial signs such as trademarks, logos and name, produce an operating manual and ensure the contractual documentation is in order. Then the registration of the franchise can be completed at the Special Registry of Franchisors.

For more information on this subject, or to make an appointment for a private consultation, please contact us at De Cotta Law, De Cotta McKenna & Santafé on:

Tel.: +34 952 931 781
Fax: +34 952 933 547