Loans in Spain. When do you need a lawyer?

Are you going to make a loan to a relative or friend in Spain? If the answer is “yes”, we recommend you to hire a lawyer.

Obviously, since we are a law firm, you probably think that perhaps we are trying to sell you our legal services, but below, we will explain the reasons why you may be interested in having a lawyer if you are going to make a loan in Spain.

First of all, each country has its own rules. If you are going to make a loan you must know how the Spanish tax regulations work. If you make a loan that does not make the repayment terms clear or that is not reasonable at all, it could be misunderstood by the Public Administration and could be considered a disguised donation. This would have consequences, such as the payment of the Gift Tax.

Second, we strongly recommend registering the loans. In some cases it is especially important, for example, to prove the date they were made. So, in the event of a tax inspection, the Tax Administration did not consider that you have made the document at the time of the Tax Inspection. Our lawyers can register the loan for you.

Third, do you really know what will happen if the lender doesn’t pay a monthly payment?


 For example, do you know if you can claim in court the return of everything lent or only that outstanding monthly payment? Our lawyers can write contract clauses that protect you from situations like these.

But, what happens if I have already made the loan and I do not have any contract?

You can still make the contract. It will be understood as a novation or a new contract that includes in writing, the verbal contract that you previously had. You can also include new clauses applying from that moment, since the clauses of a contract can be modified during its entire duration, provided there is a mutual agreement of the parties.

What if my lender doesn’t pay me?

So it may be time to go to court. If the lender doesn’t pay you, you can send him a claim letter and if he still doesn’t pay, you can sue him. You can claim late-payment interest, the percentage of which. In some cases, will depend on whether you have foreseen something in the original contract or not. The same goes for penalties. If your contract provides for a penalty for non-payment, you can claim payment of said penalty.

What you can also claim are the legal costs, which are the attorney and solicitor fees in case the requirements of the Civil Procedure Law to apply costs are met.

Our lawyers hope that this article has helped you, and if you want more specific and updated information, you can call or write to us.

Piñera del Olmo

 Aribau 114, entlo 2a
 08036 Barcelona

 Phone: +34 93 514 39 97

 Fax: +34 93 127 07 66