LegalNews

The recent Law 11/2021, of 30 June, on measures to prevent and combat tax fraud, makes numerous modifications throughout the national legal overview, with the aim of adapting Spanish legislation in this area to the regulations within the European Union.

One on the most relevant áreas subject to modification has been real estate investment and the tax implications that may derive from it. In particular, and as the most important point, we would like to highlight the introduction of a new concept: the market reference value.

This value directly affects, since 11th of July, the determination of the taxable base of taxes such as Inheritance and Gift Tax (IGT) (“Impuesto sobre Sucesiones y Donaciones” or “ISD”), Property Transfer and Stamp Duty Tax (PTSDT) (“Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados” or “ITPAJD”), or Wealth Tax (WT) (“Impuesto sobre el Patrimonio o IP”). However, the same does not apply to Real Estate Tax (RET) (“Impuesto sobre Bienes Inmuebles” or “IBI”), where the reference will continue to be the cadastral value of the property.

For IGT and PTSDT, the taxable base is set at the market reference value, unless the value declared by the interested parties is higher. If there is no such reference value, the taxable base is the higher of the market value and the value declared by the interested parties.

In addition, the Law recognises the possibility for the taxpayer to challenge this market reference value when appealing the administrative settlement or when requesting the rectification of the self-assessment, and excludes the possibility for the Administration to check the property value when the market reference value or a higher one is used.

In relation to the WT, it is established that real estate (both rustic and urban) will be computed at the highest of the following three values: the cadastral value, the value determined or verifieed by the Administration for the purposes of other taxes (the market reference value) or the price, consideration or acquisition value.

But what is the market reference value?

According to the Law 11/2021, the General Direction of the Cadastre will determine objectively, from the data collected in the Cadastre, this reference value, which will be the result of an analysis based on the prices communicated by the public notaries in the real estate sales and purchases made.

To this purpose, the General Direction of the Cadastre will include the conclusions of the analysis of these prices in an anual reporto n the real estate market, as well as in a map of values delimiting the territorial áreas of valuation, to which it will assign average value modules for real estate products.

The limit of the reference value is the market value, and in order not to exceed it, market depreciation factors are set for properties of the same class.

The elements for determining the reference value of each property and the corresponding reduction factors shall be approved, by resolution, by the General Direction of the Cadastre before 30th October of the previous year to that in which ther are to take effect.

Before their approval, a collective audience will be held, during which the interested parties may present the allegations and evidences thet deem appropriate. Likewise, the General Direction of the Cadastre’s resolution may be appealed via economic-administrative channels or by means of an appeal for reconsideration.

However, until the regulatory development is approved, the Law distinguishes between urban and rural real estate, to which it establishes the application of the value modules in accordance with the following guidelines:

On the one hand, the standars for the value of urban real estate will be based on the technical rules for valuation and buildings. In addition, the land values of each zone will allow the reproduction of the average value modules in each homogeneous territorial area of valuation.

The resolution to be approved by the General Direction of the Cadastre will define its application and will specify its calculations methods, basic land and construction modules, land values for each zone and their construction costs, as well as, where appropriate, fields of application of corrective coefficients.

On the other hand, in relation to rural properties without buildings, the resolution to be approved by the General Direction of Cadastre will define their scope of application, specifying calculation methods, as well as, where applicable, amounts and fields of location, agronomic and socio-economic corrective coefficients.

Although it is true that this is a new reference value, it is surprising that a valuation is established which, in essence, ignores certain particular circumstances that can increase or decrease the value of a property, such as sunlight, the location of a bar under the property, the building architecture with columns or master walls where work cannot be carried out, the state of the property itself, the amount of community expenses and a long etcetera of factors that can decrease or increase by 10% or 20% depending on the specific circumstances of the property.

Translated with www.DeepL.com/Translator (free version)

These are the most important issues that, with regard to the taxation of real estate investment, can be found in the modifications made by the Law 11/2021, of 30th June, on measures to prevent and combat tax fraud.

If you would like to know more about related matters, ori f you intend to invest in real estate with confidence, please do not hesitate to contact our Real Estate department by emailingo info@busquets-abogados.com or by calling 934 160 004.

Comments on the Judgment 787/2020, of 4 November. Barcelona Provincial Court

This Judgement, which establishes very important principles on lease contracts interpretation, arises from a procedure in which the plaintiff claims from the defendant the payment of a certain sum of money, due to the damages existing in the leased property at the time of its return.

To this end, the plaintiff directs her action not only against the two tenants of the property, but also against the joint and several guarantor of both.

When resolving the conflict, the Provincial Court establishes several principles, which can be summarised as follows:

Firstly, the Audiencia recalls the obligation of the lessee to return to the lessor the rented dwelling or premises at the end of the lease «as it was received, except for what has perished or has been damaged by time or by an unavoidable cause».

Furthermore, a double presumption iuris tantum (i.e. presumptions that can be rebutted by proof to the contrary) is also established: on the one hand, the tenant is presumed to have received the dwelling or premises in good condition at the beginning of the lease; and, on the other hand, the tenant is presumed to be at fault in the event of deterioration. The burden of proof to the contrary to rebut both presumptions rests with the lessee.

An important fact at this pont lies in the definition of “receiving in good condition”, which doesn’t mean receiving the dwelling “new”, but in the same condition in which it was received, admitting certain deteriorations due to habitability over time or due to unavoidable causes, by virtue of articles 1.562, 1.563 and 1.564 of the Spanish Civil Code.

All that the Provincial Court clarifies in this Judgment is understood, however, without prejudice to what has been agreed between the parties, who may establish, by mutual agreement, what they deem appropriate in the clauses of the contract.

In addition, the Provincial Court recalls the principle followed by the Supreme Court, when provides for compensation in the event of damage.

«It is reasonable to take into consideration the circumstances of the damaged property in order to reduce the compensation, for reasons of equity and to avoid unjust enrichment, considering as such the dilapidated condition of the property (…) or other similar aspects that detract from it».

This principle is intended to limit the cost of compensation, taking into consideration factors such as the age and condition of the rented property.

Finally, the principle we consider the most innovative and important (and, perhaps, the most technical-legal) lies in the perspective that the Barcelona Provincial Court holds on the joint and several surety in favour of a non-lessee third party, and its possible lack of standing to sue (that is, the impossibility of being sued in the process).

The Judgement, in order to verify wheter the liability of the joint and several guarantor can be extended to the object of the proceedings (compensation for damage caused by the lessee), and, thereforo, be considered a co-defendant, states that it is commonly accepted doctrine that the bond is not presumed, in accordance with article 1.827 of the Spanish Civil Code, but that it must be express and cannot extend to more tan what is contained therein.

In this way, in order to verify the scope of the bond, the Court establishes the obligation to attend what was agreed between the parties (by virtue of articles 1.091 and 1.255 of the Spanish Civil Code), both with regard to the contractual duration and the bonding clause. The Judgement established, as settled doctrine, that «in order to ascertain the intention of the parties, the entire contract must be taken into account, and not a clause isolated from the others».

Furthermore, according to the commonly accepted doctrine, it is provided that the guarantee clause must be interpreted in a restrictive way, for the debtor’s benefit, as a principle and general rule in the interpretation of contracts.

It should be noted that, in the lease contract object of this Judgment, one of those co-defendants was established as a joint and several guarantor in the following terms: “constitutes (…) himself (…) as personal and joint and several guarantor and for all purposes guarantees the tenants in the lease (…) taking responsibility for any non-payment that may arise”.

In the opinion of the Provincial Court, that clause doesn’t expressly extend the responsability to the fulfilment of all obligations, only to monetary obligations; and extending this liability to a non-monetary obligation (such as, certainly, the obligation to maintain and return the rented property or premises in the same state in which it was received), would violate the principle of restrictive interpretation of the bond, in favour of the debtor.

Therefore, the Provincial Court considers that liability cannot be extended to the joint and several guarantor in this case.

In the lease contracts that we draw up at BUSQUETS, we always recommend expressly detailing the obligations of the parties (lessor, lessee and possible joint and several guarantors), in order to avoid what happens in the present case: that, by not correctly foreseeing the extension of the responsibilities of the other party, the lessor may be harmed by a possible non-payment by the debtors, not being able to claim the fulfilment of non-monetary obligations from the joint and several guarantor, whose responsibility would have been extended if the clause in the contract had been drafted correctly.

1. INTRODUCTION

The following is a summary of the main regulations contained in Decree 75/2020 of 4 August 2020 on Tourism in Catalonia (hereinafter, the “Catalonia Tourism Decree“), which focuses mainly on tourist accommodation establishments, the new regime for tourist accommodation and the regulation for the first time of shared accommodation for tourist purposes (home-sharing), as well as the control of compliance with the requirements established by the tourism regulations.

It was published in Diari Oficial de la Generalitat de Catalunya on 6 August 2020 and came into force 20 days after its publication, i.e. on 26 August 2020, except for Title IV on home-sharing, which will come into force on 6 August 2021.

According to the Explanatory Memorandum of the regulatory provision, “with this Decree, the integration of tourism regulations applicable in Catalonia culminates its process, recasting 7 regulatory provisions in force in the field of tourism in Catalonia“.

1. Decree 66/2014, of 13 May, on the regulation of tourist information, dissemination and assistance services in Catalonia.
2. Decree 159/2012, of 20 November, on tourist accommodation establishments and dwellings for tourist use.
3. Order EMO/418/2012, of 5 December, on the structuring of the Catalan tourism quality system.
4. Decree 420/2011, of 20 December, on the creation of the Catalan Tourism Board.
5. Decree 46/2010, of 30 March 2010, creating the Interdepartmental Commission for Tourism.
6. Decree 52/1997, of 4 March, which regulates the sanctioning capacity in tourism matters.
7. Decree 161/2013, of 30 April, approving the Regulations of the Fund for the Promotion of Tourism.

With regard to the scope of application of the Catalonia Tourism Decree, based on Article 111-2, “The provisions of this Decree apply to the tourism businesses and activities regulated in the Tourism Act and to the tourism administrations located in Catalonia. They also apply to the new types of tourist accommodation companies regulated in this regulation under the name of motorhome reception areas, unique accommodation and shared homes.

Excluded from this Decree are those establishments, residential facilities, means of transport or vehicles where overnight stays are permitted that are regulated by their own regulations, such as youth facilities, residences for the elderly, student residences, establishments where sexual or similar activities are carried out”.

2. TOURIST APARTMENT ESTABLISHMENTS

Tourist accommodation establishments are those which, in a habitual manner, with a professional character and with the corresponding authorisation, offer users, for a price, temporary accommodation in accommodation units, as well as other tourist services in accordance with the conditions and typologies established in this regulation.

Within this typology, we find the establishments of tourist flats, which are buildings or continuous complexes made up entirely of flats or studios as a single establishment or as a business unit of exploitation, with the corresponding tourist services.

Annex 1 of the aforementioned Decree establishes the minimum tourist requirements for hotel establishments.

3. TOURIST DWELLINGS

According to article 221-1, a dwelling for tourist use is considered to be that which is ceded by its owner, directly or indirectly, to third parties, in exchange for an economic consideration for a seasonal stay and in conditions of immediate availability.

A seasonal stay is considered to be any occupation of the dwelling for a continuous period of time equal to or less than 31 days. Therefore, tourist accommodation establishments cannot become the main or secondary residence of tourist users.

Furthermore, it is important to bear in mind that tourist dwellings are rented as a whole, and are not allowed to be rented on a per-stay basis. As for their maximum capacity, they may not be occupied with more places than those indicated in the certificate of occupancy and in any case, the number of places may not exceed 15. The purpose of this restriction is to make tourist accommodation activity compatible with neighbourhood coexistence, the right to rest and the provision of a quality service.

On the other hand, it is important to bear in mind that only duly authorised dwellings registered in the Tourism Register of Catalonia may be transferred, and in the event that the owner of a property becomes aware of a clandestine activity, he/she has the duty to notify the competent Administration, as well as to take the corresponding civil action aimed at the effective cessation of the tourist activity.

Consequently, the use of a dwelling for tourist use must be compatible with the regulation of the uses of the sector in which it is located and with the applicable civil regulations.

In line with this, it is worth highlighting the special regime in the municipality of Barcelona, as it provides for the possibility for Barcelona City Council to establish, by ordinance and for new authorisations, specific requirements for tourist accommodation activities in dwellings for tourist use and in shared homes, as well as time limitations and maximum periods of validity.

Finally, the maximum limit of 15 places will not apply to tourist accommodation already registered at the time of entry into force of the Catalan Tourist Decree, except in the event of a change of capacity or change of ownership. Thus, in the event of cessation, termination or expiry of the authorisation, the new activity to be implemented must comply with the regulations in force.

4. SHARED HOME

The Tourist Decree of Catalonia does not expressly regulate the tourist rental of rooms, but includes a new type of tourist accommodation: the shared home.

A shared home is considered to be tourist accommodation that is the main dwelling and effective residence of the owner and that is shared as an accommodation service with third parties in exchange for a financial consideration and for a seasonal stay.

It is essential in this legal concept that the owner of the property must reside in the dwelling for the duration of the stay. As mentioned above, a seasonal stay is considered to be any occupation of the dwelling for a continuous period of time equal to or less than 31 days.

The person in charge of the activity may be the owner of the property or the person expressly authorised by the owner. In this case, the authorised person must fulfil the same conditions of census registration and effective residence required of the owners.

It is also important to note that dwellings that are not registered and duly authorised may not be transferred. In the event that the owner of a property becomes aware of any clandestine activity, he/she has the duty to report it to the competent Administration, as well as to take the corresponding civil actions aimed at the effective cessation of the tourist activity.

Therefore, the destination of a shared home must be compatible with the regulation of the uses of the sector where it is located and with the applicable civil regulations.

5. UNIQUE ACCOMODATIONS

The Catalan Tourist Decree provides for this new type of accommodation that, while providing temporary accommodation in exchange for a financial consideration, does not fall into any of the regulated types of tourist accommodation or those expressly excluded by the aforementioned regulation.

By way of example, this type of accommodation could include tree huts, shepherds’ huts, huts such as those in the Ebro delta, caves, etc., among others.

Local councils may set up unique accommodation in their municipal area provided that they define and delimit the activity, in accordance with the minimum conditions established by these regulations, as well as all applicable non-tourist sector regulations (safety, health, environment, etc.). However, under no circumstances may unique accommodation be enabled with the aim of avoiding the application of the different sectorial requirements demanded of other types of tourist accommodation.

 

Does my entity need a Data Protection Officer? Should this figure be held by a lawyer? Before answering the first question posed, it is useful to know some differences between a Data Protection Officer (“DPO”) and a lawyer. The difference lies in the fact that the DPO has an independent role and offers a multidisciplinary vision that goes beyond a simple legal advice. In the following sections, we will answer the first query, knowing more precisely those cases in which a DPO must be appointed, the functions that a DPO carries out, as well as knowing the relations of this figure with the different agents, inside and outside the organisation.

Let us begin. A DPO is a new figure introduced by the data protection regulation to guarantee compliance within this legal framework in an entity. It may be either an individual or a legal entity, provided that it coincides in a profile of data protection expert and, furthermore, has specialist knowledge in law, although for this it is not mandatory to be a lawyer.

Subsequently, after this first approximation, it is now necessary to know in which cases it operates, and therefore to know whether its appointment is necessary. According to the regulation, the appointment of the DPO will be mandatory, when (i) the processing is carried out by a public body; (ii) the processing operations involve the processing of large amounts of personal data on a “large scale“; or (iii) the processing operations consist of the processing on a “large scale” of special categories of personal data (e.g. health, genetic or biometric data).

In contrast, if one of the three scenarios occurs, then such designation will be mandatory, regardless of other aspects such as the size of the company or its sector of activity, among others. Thus, without going into the matter of designation, it should be added that the designation must publish the contact details of the DPO, in order to clearly establish the point of contact between the entity and the data subject; and, in addition, the appointment, renewal and termination of the DPO must be communicated to the competent supervisory authority (e.g. www.aepd.es).

On that sense, whether we are in force or not, if we wish to appoint a DPO, the designed person must, as a minimum, carry out the following functions within the  organisation, we shall see: (i) inform and advise on the obligations arising from the data protection regulations, with a multidisciplinary vision that goes beyond the purely legal aspects (e.g. privacy by design and by default); (ii) supervise compliance in an independent manner (e.g. internal auditor), raise awareness and train staff in data protection; (iii) advise on a Data Protection Impact Assessment; (iv) cooperate with the competent supervisory authority; and, (v) serve as a contact point with that supervisory authority.

To sum up, our recommendation is that you should be well informed about this new figure, be aware of it, and more importantly, that when you choose a DPO, both the Controller and/or Processor should ensure that the individual in charge is aware of the DPD’s data protection expertise; for a simple reason, a mala praxis by the designed DPD could entail some risks of non-compliance with the regulation, and as well as creating setback that would prevent or delay the company’s activity, and even the organisation’s innovation. Therefore, according to Article 83.4 of the RGPD, such non-compliance with the referred regulation, may lead to infringements and shall be subject to administrative fines up to 10 million euros, or in the case of an undertaking, up to 2% of the total worldwide annual turnover of the preceding financial year, whichever is higher, and won’t prescribed after two years.

If you have any queries or you shall need a data protection delegate, we will be very happy to help you in this regard. You can also contact us at mgilvernet@busquets-abogados.com.

As a continuation of our previous LegalNews related to the COVID-19 issued by this firm, we inform you that the Catalan Government has announced a modification of the Catalan Civil Code with the intention of including a legislative regulation of the rebus sic stantibus clause.

According to what has already been stated in previous LegalNews, such a clause is a general principle of law (not a rule) that can come into play when there is: 1) an extraordinary alteration of circumstances between the time of signature of the contract and the time of performance of the contract; 2) there is an exorbitant disproportion between the performances of the parties; 3) the cause is radically unforeseeable; 4) there are no other means to save the damage.

The purpose of this clause is to make the compliance of contracts more flexible in the event of a later, radical and unforeseeable change from the circumstances existing at the time the contract was signed.

However, since the rebus sic stantibus clause is not currently provided for by law, the party to which the clause is invoked is not obliged to accept it. However, the party invoking may go to court, and there is a growing case law that considers the application of the clause appropriate and consequently opts for flexibility in the performance of the contract.

At present, in the context of the COVID-19 crisis, the rebus sic stantibus clause is particularly relevant, as it has been invoked in several legal areas, especially in the field of lease contracts.

Many tenants, both in residential and business premises, have had and have difficulty paying the rent. Some of them have suffered a sharp drop in income and are asking their landlords/landladies for special conditions for paying the rent. Such disputes are not always resolved by amical agreements.

Therefore, in view of this situation, the Catalan Government has considered it necessary to establish by law the duty to be able to renegotiate contracts in exceptional situations, such as the current crisis caused by the pandemic that we are suffering at a global level.

However, we emphasise that this is a proposal by the Government that has not yet materialised, but will have to be approved, if necessary, by Parliament at a date yet to be determined.

We will keep you informed of any new legislation related to the effects of COVID-19.

If you have any questions regarding the effects of COVID-19, please do not hesitate to contact this firm by e-mail at info@busquets-abogados.com.

1) PURPOSE OF THIS NOTE

Below is a summary of the main measures approved by the Government of Catalonia on October 20, 2020, through Decree Law 34/2020, on urgent measures to support economic activity in leased business premises, whose contracts were signed from January 1, 1995.

It came into force on October 22, 2020 and the aim of the Catalan Government was to intervene in the rental market of industrial and commercial establishments (bars, restaurants, stores, gyms, hotels, etc.) in Catalonia, in order to counteract the suspension of economic activities that the Government may dictate as a result of the COVID-19.

2) MEASURES OF THE CATALAN GOVERNMENT

In order to economically relieve the establishments, in view of the total or partial restrictions of their activities that have been introduced by the Administrations to fight the health crisis, the Government has decided to adopt an ad hoc regulation.

The position it has taken is based on a “criterion of distribution of the negative consequences of prohibitions, suspensions and restrictions imposed to prevent the spread of the pandemic”, as well as “an equal and equitable distribution of the negative consequences, thus socializing the risk and avoiding to make it burden only on one of the contracting parties”. All this without accepting any responsibility on the part of the Administration, nor assuming any obligation to help.

Taking into account these bases, we have broken down the main aspects of the new regulation:

2.1 Previous considerations

As announced in the explanatory memorandum of the Decree Law, the measures adopted limit their effectiveness to the duration of the prohibitions or restrictions issued by the competent authority, and are established as default rules in case the parties do not reach a satisfactory agreement within a reasonable period of time.

Lessees may request from the lessor by ‘burofax’ or other reliable means, “a reasonable and equitable modification of the conditions of the contract” and from the moment the lessor receives such notification, he is prohibited from sending rental invoices to the lessee.

The Decree Law forces an express negotiation of 1 month (counting from the mentioned requirement) between tenants and landlords that, in case of failure, will derive in the measures exposed below.

2.2 Suspension of the activity

The rent and other amounts owed by the tenant will be reduced by 50% compared to those in force during the suspension.

2.3 Partial restriction

The rents must be reduced in a proportion equal to half of the loss of useful space of the property, measured both in terms of capacity and hours.

2.4 Delivery/Take Away

Home delivery or collection of products in the establishment does not affect the above-mentioned reductions.

This means that income from home delivery or collection on the premises will not affect the reductions in payments provided for.

2.5 Guarantees

The tenant may require the owner to collect the rent and other expenses due from the guarantees deposited, except for the obligatory legal deposit and other guarantees deposited with the competent official body.

However, the tenant must return the guarantees that have been charged within one year of the end of the suspension of the activity or the restriction of the material use of the rented property, and in any case before the end of the contract if its duration is shorter.

2.6 Resolution

If the Government’s restrictions are extended for more than 3 months, the tenant may terminate the contract without penalty, provided that he gives the landlord 1 month’s notice.

3) REBUS SIC STANTIBUS CLAUSE

Initially the Government had announced a modification of the Catalan Civil Code with the intention of including a legislative regulation of the Rebus Sic Stantibus clause.

This clause is a general principle of law (not a rule) that can come into play when there is: 1) an extraordinary alteration of circumstances between the time of conclusion of the contract and the time of performance; 2) there is an exorbitant disproportion between the services provided by the parties; 3) the cause is radically unforeseeable; 4) there is no other means of saving the damage.

But finally, the Government has chosen to extrapolate the essence of this clause to a future Bill, which will establish in a concrete manner the general regulation necessary to re-establish contractual balance in the event of unforeseen changes in circumstances.

4) Final considerations

The above is a brief summary of the main novelties in relation to the recently approved regulations in force. However, this decree law must be ratified by Parliament and can be appealed to the Constitutional Court. We will keep you informed of any new legislative developments related to the effects of the COVID-19.

If you have any queries regarding the effects of COVID-19, please do not hesitate to contact this firm by e-mail at info@busquets-abogados.com.

The purpose of this article is to provide information on the main characteristics of this legal institution, which enjoys certain tax advantages under the Inheritance and Gift Tax Act.

The mutual aid relationship is a form of cohabitation outside of marriage and stable unions, made up of relatives in a collateral line with no degree limit or by people united by bonds of friendship or company, who, without constituting a nuclear family, share a home and pool their domestic work, with a desire for mutual aid and permanence.

We highlight the most relevant aspects of the regulation of this situation of coexistence:

a) Constitution: Mutual aid relationships can be constituted (i) by public deed, from which they are fully effective, or (ii) by the course of a two-year period of cohabitation, but the minimum two-year period of cohabitation must be demonstrated by means of a notarial deed.

b) Personal requirements: It should be noted that the maximum number of cohabitants, if they are not relatives, is four. On the other hand, persons who are already married or are in a stable relationship with another person with whom they live are excluded from this type of cohabitation.

However, taking into account the purpose of the rule, there is no impediment for each of the members of the marriage or stable couple to be able to have a mutual aid relationship with a third party.

c) Agreements: Cohabitants may regulate personal and property relations, and the respective rights and duties during cohabitation, as long as these agreements do not harm third parties. And in anticipation of a rupture, the cohabitants can also agree on the effects of the extinction of such a relationship.

d) Extinction: Among the causes of the extinction of the mutual aid relationship, we highlight (i) the agreement of all the cohabitants, (ii) the unilateral will, (iii) the death of one of them, (iv) the causes that would have been agreed upon at the time of their constitution, (v) the marriage or the constitution of a stable couple.

However, if the cohabitation relationship has been established between more than two persons, then the unilateral will, the marriage, the constitution of a stable couple or the death of any of the co-habitants, will not extinguish the relationship if the others continue to live together, without prejudice to the modifications that are considered convenient to make in the agreements regulating the cohabitation.

The extinction of such a relationship also has consequences for example on:

• The dwelling, depending on whether the termination of the cohabitation takes place during the life of all the partners or on the death of one of them and depending on whether the partner is the owner or the tenant of the property.
• Powers of attorney, since the termination of the cohabitation relationship leaves without effect the powers of attorney that one of the cohabitants has granted in favor of any of the others.

Likewise, powers of attorney that one of the members has granted in favor of any of the others or has granted in his favor since he left the cohabitation are without effect.

• The right to a periodic pension in the event of the termination of cohabitation due to the death of one of the partners provided that the particular situations determined by law are met.

e) Tax advantage: In acquisitions due to death between members of a mutual aid cohabitation, the acquirers are assimilated to the group of relatives determined in the law on inheritance tax. This assimilation operates in specific cases, among others, for the purpose of applying the corresponding reductions for the acquisition of the habitual residence of the deceased.

In this article we have highlighted the main characteristics of this somewhat unknown legal institution. If you have any questions, you can use the contact area of our website to consult with our team of specialist lawyers. We will be happy to assist you.

As a continuation of the information bulletins issued by this office related to COVID-19, we inform you that Barcelona is currently in phase 2 of the plan for the return to the new normality after the declaration of the state of alarm.

Although the state of alarm is maintained, the so-called “de-confinement” has begun, a period which in turn is divided into several phases of transition towards this new normality.

The aforementioned phase 2 relaxes certain restrictions that were established due to the health crisis, regulated in Order SND/414/2020, of 16 May.

In this note we will focus on the commercial sector and the reopening of:

A) Establishments and retail commercial premises and professional services activities whose activity had been suspended after the declaration of the state of alarm

In the retail and service sector, it is permitted to open them regardless of their useful exhibition and sales area, provided that their total capacity is reduced to 40%. Let us remember that the fundamental difference with the previous phase is that only those with an area of 400 square meters or less could open.

B) Shopping centres and parks

Shopping centres and parks may be reopened to the public, provided that, among other things

• Their total capacity is limited to 30% of their common areas.
• That it is limited to 40% of the capacity of each of the commercial establishments located in them.
• Customers are not allowed to remain in the common areas except for mere transit between the commercial establishments.
• The use of recreational areas such as children’s areas, playgrounds or rest areas is prohibited and must remain closed.

C) Hotel and restaurant activities

With respect to the development of hotel and restaurant activities, the premises may be reopened to the public for consumption, except for discotheques and nightlife bars, provided that they do not exceed 40% of their capacity and that additional hygiene conditions are met.

However, consumption on the premises may only take place at a table, or group of tables, and preferably by prior reservation.

It should be remembered that in the previous phase, only open-air terraces with a maximum occupancy of ten people per table or group of tables were allowed to be reopened to the public, with a limit of 50% of the number of tables allowed compared to the previous year.

D) Opening of hotels and tourist accommodation

The common areas of hotels and tourist accommodation may be reopened to the public provided that they do not exceed one third of their capacity.

E) Travelling/street markets

The markets that carry out their activity in the open air or for non-sedentary sales in the public thoroughfare, commonly called flea markets, which have already restarted their activity or are restarting it by decision of the corresponding Town Hall from the entry into force of this order, will be guaranteed to be limited to one third of the usual or authorised stalls, limiting the influx of customers in such a way as to ensure that the social distance of two meters is maintained.

This Order also regulates, by way of illustration, visits to supervised housing, residential centres for the disabled and residential centres for the elderly, as well as the hygiene and prevention measures applicable to each of them.

We will continue to keep you informed of any new developments related to the effects of COVID-19.

If you have any questions regarding the effects of COVID-19, please do not hesitate to contact this firm by e-mail at info@busquets-abogados.com.

Following the LegalNews issued by this firm related to the COVID-19, we inform you that Barcelona is currently in phase 1 of the plan to return to the new normality after the declaration of the state of alarm.

Although the state of alarm is maintained, the so-called “de-confinement” has begun, a period which in turn is divided into several phases of transition to this new normality.

The aforementioned phase 1 relaxes certain restrictions that were established due to the health crisis, regulated in Order SND/399/2020, of 9 May.

In this note we will focus on the commercial sector and the reopening of:

A) Establishments and retail commercial premises and professional services activities whose activity had been suspended after the declaration of the state of alarm.

In the area of retail trade and services, the opening of retail premises and establishments is maintained with respect to phase 0, provided that they have an area of 400 square meters or less, and with the exception of those located within parks or shopping centers without direct and independent access from the outside.

B) Hotel and restaurant activities.

With respect to the development of hotel and restaurant activities, the reopening to the public of the open-air terraces of hotels and restaurants is established. The maximum occupation allowed will be ten people per table or group of tables, with a limit of fifty percent of the number of tables allowed compared to the previous year.

C) Opening of hotels and tourist accommodation.

Hotels and tourist accommodations may be reopened to the public, but always observing the sanitary measures and instructions for protection and interpersonal safety distance, such as cleaning and disinfecting at least every two hours the button panels of lifts or machines, stairway handrails, door handles, bells.

Thus, among other aspects, it is allowed that the catering and cafeteria services can be carried out when it is necessary for the correct provision of the accommodation service, and exclusively with respect to the hosted clients. This service may not be provided in the common areas, as they will remain closed.

However, the use of swimming pools, spas, gyms, mini clubs, children’s areas, discos, event rooms and all those similar spaces that are not essential for the use of hotel accommodation or tourist accommodation will not be permitted.

D) Automotive dealerships, vehicle inspection stations and garden centers and plant nurseries, whatever their useful exhibition and sales area.

They may reopen to the public by appointment, irrespective of their useful exhibition and sales area.

E) Itinerant markets

Markets that operate in the open air or that sell non-sedentary products on the public highway, commonly known as flea markets, may reopen when the corresponding local councils so decide (and they must communicate this decision to the competent health body of the autonomous community), giving preference to those that sell food products and basic necessities and ensuring that the products sold there are not manipulated by consumers.

The Town Councils will be responsible for establishing the requirements for distance between stalls and conditions for delimiting the market with the aim of guaranteeing safety and distance between workers, customers and pedestrians.

In any case, a limitation of 25% of the usual or authorized stalls and an influx of less than a third of the usual capacity will be guaranteed.

This Order also regulates, by way of illustration, the conditions for the development of active tourism and nature activities, hunting, sport and recreational fishing, among other activities, as well as the hygiene and prevention measures applicable to each of them.

We will continue to keep you informed of any new developments related to the effects of COVID-19.

If you have any questions regarding the effects of the COVID-19, please do not hesitate to contact this firm by e-mail at info@busquets-abogados.com.