Spanish notaries are pushing for significant changes to the country's tax and urban lease laws. The Madrid Notary Association and the Madrid Notarial College are both urging reforms to encourage "assistance pacts" – mutual help agreements among people who live together but are not related by family ties.
These pacts, also referred to as "mutual assistance agreements," aim to provide legal and financial frameworks for individuals sharing households without traditional family bonds. The notaries believe that current laws surrounding succession and donation taxes, capital gains, and urban leases do not adequately address the needs and realities of these cohabiting arrangements.
Reforms Needed for Modern Living Arrangements
The call for reform highlights a growing recognition of diverse living arrangements that fall outside the traditional family structure. By advocating for changes in succession and donation taxes, notaries aim to reduce the financial burden on individuals who wish to support their cohabitants. Adjustments to capital gains tax and urban lease law could further facilitate these "assistance pacts," providing greater security and clarity for those involved.
The specific proposed changes have not been detailed, but the overall objective is to create a more equitable and supportive legal environment for individuals choosing to live together and support each other outside of traditional family relationships.
VAT Reduction on Bread: A Win for Consumers
In other economic news, the Spanish Treasury has lowered the Value Added Tax (VAT) on all types of bread, including sliced bread, "regañás" (a type of crispy breadstick), and gluten-free bread, from 10% to 4%. This reduction follows a ruling by the Supreme Court and means that all breads, both common and specialty varieties, will now be subject to the super-reduced VAT rate.
This change is expected to provide some relief to consumers, making bread more affordable. The reduction in VAT applies to all breads, ensuring that consumers will benefit regardless of their dietary needs or preferences.
Euribor Reaches 13-Month Low
Finally, the Euribor index ended February at 2.407%, marking the lowest figure since September 2022. This decrease in the monthly average is welcome news for mortgage holders, potentially easing their financial burden.
These recent economic developments – from the push for legal reforms to the VAT reduction on bread and the drop in the Euribor – reflect ongoing efforts to adapt to changing societal needs and economic conditions in Spain.