Laws in Spain | BMI Brokers

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What is ITV in Spain? A quick guide

2 July, 2021/in Laws in Spain /by Bmibrokeradmin

Are you wondering what is an ITV in Spain? It is the Spanish equivalent of what in the UK is known as MOT, however, there are several differences. Here we will tell you all about them.

The ITV is an inspection to check whether your car is roadworthy or not. If you are planning on buying a car in Spain, the ITV test is something you will get used to with time. At first, it might look daunting, but we hope that after this quick guide you have everything you need to pass it successfully.

However, it is essential that you know what is the ITV in Spain and the steps to go through to show that your car is in perfect condition. If you are caught without the ITV sticker you are given after the test, you could be obliged to pay a fine of 90 to 150 euros, or they could confiscate your car until you prove it has passed the ITV.

Documents you will need for the ITV test

Whilst learning about what is the ITV in Spain, you should also make sure that you have the right documentation to deliver during the test. These are the documents you must present:

Ficha técnica: This is a document that shows the technical information about your car.
Permiso de circulación: Your vehicle’s registration document.
Evidence that your car has the appropriate insurance. Usually, you present a payment receipt of the latest car insurance premium
DNI/NIE identification

What is ITV in Spain?: charges and fee

As you might know, once you are at the ITV station, and you present all the documentation, they will ask you to pay a certain fee. The amount depends on the type of vehicle you drive, its power, and its size, among other aspects. It also varies in each Autonomous Community. Here you have a link with the complete information (it is in Spanish).

When should you take your car to the ITV test?

While in the UK you must take the MOT annually, the frequency depends on the age of the car.

Cars:

If your car is less than four years old, you are exempt from undergoing the inspection.
Once the car is between four and ten years, it must be done every two years.
If your car is older than 10 years, then it must pass the inspection annually.

Motorcycles:

They are first tested after five years, then every two years.

Caravans:

Caravans must be first tested at six years, then every two years.

Schedule an appointment for the ITV inspection

Another important aspect is to know how to book an appointment for your ITV in Spain. Now it is possible to pre-book your appointment with the ITV centre and avoid long queues of people with their vehicles looking to take the ITV test.

Make your appointment here.

There are many ITV centres all around Spain, so it will not be difficult for you to find one close to your municipality. The opening hours depend on each ITV centre, but it ranges from 8:00 to 20:00.

It is also important that you schedule your ITV inspection as early in the morning as possible. Later you will discover why.

What is the ITV in Spain? What does it consist of?

With an MOT, you can drop your car and leave, and there is nothing more you need to worry about. However, in Spain, you will be asked to perform a series of tasks during the inspection.

If it looks intimidating to you, given the language differences, then you can ask a Spanish speaker to take the car through for you. Here we show you how it will look like and the steps you will be asked to take:

Give your car documentation to the ITV office and pay the fee. You will be given some documents that you should deliver to the mechanic.
Take your car through the different checkpoints:
1. Lights, wipers, indicators, hazards, seatbelts, etc.
2. Wheel alignment
3. Hand brakes and brake.
4. Omissions and oil
Park your car and come back to the office for the paperwork.

What to do when your vehicle has failed the ITV test

Once the inspection is finished, you should check the sheet and look for the results of the test. If your car has failed the ITV, then you will see a stamp with the word “Disfavorable”, which means “unfavorable” in English. There you will also find all the information regarding the technical features you must repair, so your car is considered roadworthy.

You have a month to fix your car and pass the test again. If you do so in the first 15 days, you will get a discount on the fee. Past that period of time, you will have to pay the full amount.

What happens if you have a foreign vehicle

First, you must know that if your car has been more than 6 months in Spain, then it will be considered to be permanently imported, and it must be re-registered. Learn how to do so here: Registering a foreign car in Spain: a complete guide.

If you drive a foreign car in Spain, you can pass the ITV, but it will only count as a “Voluntary Certificate”, not as valid proof that your car is roadworthy. These are the options you have:

Pass the test in the country where your car was registered.
It must be correctly imported and transferred to Spanish plates.

We hope that you have found this article useful. If you have any questions regarding your car insurance in Spain, BMI BROKERS is here to help you. Get in contact with us, and we will gladly help you.

How to buy a house in Spain: a complete guide

18 May, 2021/in Laws in Spain /by Bmibrokeradmin

Are you thinking of buying a home and don’t know how to go about it? In this BMI Spain blog article, we tell you how to buy a house in Spain step by step and all the aspects you need to take into account.

Take a pen and paper and write down every detail. The house of your dreams is just a few steps away!

How to buy a house in Spain: key factors to take into account

In order to know how to buy a house in Spain, before you start there are three fundamental factors that you need to take into account before the purchase of your new home. These are detailed below:

Budget

The first thing you have to take into account if you want to buy a house is to carry out an analysis of your economic situation in order to know approximately how much money you are willing to pay, taking into account your savings and current income.

Pay cash or mortgage

Once you know the budget you have and know the amount of money you have available for the purchase of the property, you will have to decide whether you can pay cash or, on the contrary, apply for a mortgage to finance the purchase of your home.

Bear in mind that if you finally agree to buy the property utilizing mortgage financing, you will have to expect an expense every month until the total amortisation of the credit granted.

One way to find out what the mortgage payment will be like is to use mortgage simulators, normally the banks have their own on their websites.

Spaniards and residents/non-residents

Finally, you must take into account whether you are Spanish or resident in Spanish territory or, on the other hand, if you are a non-resident in Spain:

Spaniards and residents: there are no requirements for citizens of Spanish nationality or persons with residence in Spain.
No-residents: If you are a foreigner not a resident in Spain, you must have a NIE, which is a personal, unique, and exclusive number that all foreign buyers must have for fiscal purposes.

In addition to the obligation to have a NIE, it is advisable to have a Spanish bank account. Although it is not compulsory, bear in mind that all invoices and receipts related to the sale and purchase have to be paid in Spain, so it will be much more convenient to have a bank account in this country.

If you decide to open a bank account in Spain, because of the money laundering banking policy, you will need to provide the tax identification number of your country of origin.

How to buy a house in Spain: step by step

Search for the house

You may have already found the house of your dreams, but on the other hand, you may be considering buying a house in Spain and need to find one that matches your expectations.

Here are some tips on how to buy a house in Spain to keep in mind:

Whether you have decided on a property or are still looking, compare the different options available to you.
Visit the house and examine its condition: state of the windows, doors, façade, etc.
Legal situation: you can request a nota simple, document issued by the Property Registry that indicates who the owner is and any charges or legal limitations that the property may have.

Deposit Agreement

If you have already decided which house you want to buy, you will probably agree with the seller to sign a deposit contract.

A deposit contract is a private agreement whose purpose is to guarantee the sale of the property in exchange for handing over a sum of money as part of the price.

For the signing of this contract, both buyer and seller will agree on a date for its signature, at which time the cheque is handed over or the transfer of the agreed amount is made, in the latter case a receipt must be provided.

This contract will reflect the final price of the sale, as well as the rest of the conditions agreed for the purchase of the house. It must also include the latest date for signing the purchase contract in front of a notary, usually agreed within a month or two, but it depends on the parties.

Purchase contract

The purchase contract is necessary to formalise the transaction between the seller and the buyer. The law establishes that it must be signed in front of a notary, who is also obliged to read the whole contract and explain it to the parties.

Once the contract has been signed and the remaining amount of the price has been paid (if a deposit contract has been signed), the house becomes the property of the buyer. The notary will notify the relevant land registry of the sale and purchase.

However, both parties are obliged to pay the corresponding taxes.

Home insurance that adapts to you

Now that you know how to buy a house in Spain, you must always have a good home insurance policy that covers all possible contingencies that may arise.

We help you find the best home insurance to cover any type of damage that may happen to your home and the elements in it.

At BMI Spain we can help you find the home insurance that best suits your needs so that all you have to do is enjoy this wonderful city.

For more information, you can contact us for any of our fears, we will be happy to attend you.

Okupas in Spain: How to protect your home

2 March, 2021/in Laws in Spain /by Bmibrokeradmin

As a result of the real estate crisis just some years ago and the economic difficulties that part of the Spanish population is going through due to the Covid-19, illegal property occupation has become one of the main concerns of Spanish property owners.

Squatters, better known as Okupas in Spain, represent a threat to any owner of real estate, whether it is their usual residence or a second home.

According to data provided by the Interior Ministry there has been an exceptional increase in squatting, especially in large cities such as Madrid and Barcelona.

In this BMI Spain blog post we tell you how to protect your home from okupas in Spain to avoid a big problem.

How to protect your home from okupas in Spain?

To prevent them from occupying your home here are some tips to protect your home from okupas in Spain:

Regular visits to the property

In the case of a second residence, it is more likely to be occupied, therefore, one of the ways to avoid okupas in Spain is to “deceive” them and make them believe that the house is inhabited.

If distance allows it or if you, for instance, have a trusting relationship with a neighbour, it is ideal to visit the house regularly to make them believe that there are usually people there.

Actions such as picking up letters from the mailbox, turning the lights on and off or raising and lowering the blinds can throw potential squatters off the scent.

In addition, another detail to consider is that we should avoid giving details about our movements and plans and try not to post on social networks where you are, as this way okupas in Spain can take advantage of this information.

Another possible solution is to rent out your home during the time you are not living in it to avoid the entry of okupas in Spain.

Security doors to avoid okupas in Spain

Another one of the measures that must be carried out to avoid the occupation of our houses when we are not in them is to install a security door that prevents the entrance of third parties to the house.

You can find on the market doors made of high-quality materials and designed with mechanisms that prevent the door from being opened with a simple blow or a hole that can be drilled.

Normally these doors have a steel plate inside of different thickness, which is what makes the resistance much higher compared to other types of doors.

Special locks to prevent the entrance of occupants

This point is closely related to the previous section. It is another of the ways to make more effective measures to prevent the entry of occupants squatters in a house by installing a security lock to prevent squatters from entering the house.

Okupas in Spain, when entering a house, usually force the lock and then change the cylinder. Therefore, it is advisable to change the lock you have to another much more secure one and that includes a system that locks when there is a break-in.

In the market you can find an infinite number of different locks whose price can be a little higher, but in this way, you can make breaking in a little more difficult.

Do not forget to protect the windows

If the house is located at street level another of the measures to avoid squatters is to reinforce the windows, since otherwise you could be facilitating their access.

You can install bars that, despite being an unaesthetic measure, can dissuade the entrance of criminals. There are also locks or internal security locks that can make it difficult to open the window.

Burglar alarm system and security cameras

The safest way without a doubt, to prevent okupas in Spain and to dissuade them from entering our homes is to install a burglar alarm system in the house leaving our property protected 24 hours a day.

Nowadays there are modern systems that make the alarm go off as soon as it detects a minimum attempt of intrusion and, in addition, notify the police or a security company who will show up in the house rapidly.

It is also advisable that the system has built-in video cameras to be able to record the events and prove if necessary that there has been a break-in.

Another advantage of this type of system is that you can have direct access from your mobile phone, so you can check the status of your home whenever you want.

Take out a good home insurance policy

This measure does not try to avoid squatters in the house, but it is a solution for those cases in which they have managed to enter the house.

With a good home insurance that covers some contingencies such as legal costs arising to recover the house, the costs incurred by possible damage to the house or common areas if the house is in a block, or if they have committed a theft and have taken objects and goods, the possibility of recovering the corresponding value.

When taking out a home insurance policy, it is important that it includes the risks that may arise from an occupation of the home, such as those described above.

Home insurance that adapts to you

As you may have seen, okupas in Spain is a current issue and it is important to take the appropriate measures to avoid intruders in our home, as well as to take out a good home insurance policy to cover possible damages.

At BMI Spain, we can help you find the home insurance that best suits your needs so that you can be sure you will have peace of mind when you are not at home.

For more information, you can contact us for any of our means, we will be happy to attend you.

Social Security in Spain: everything you need to know

15 February, 2021/in Laws in Spain /by Bmibrokeradmin

Are you looking for information about Social Security in Spain? When moving to another country, in this case to Spanish territory, it is important to know the fundamental aspects about the social security system such as requirements or benefits.

In this BMI Spain blog post we tell you all the keys information about Social Security in Spain and how to access it. Read on and take notes to find out everything you need:

Social Security in Spain

Social security in Spain is a right contained within Article 41 of the Spanish Constitution of 1978, which establishes “that the public authorities shall maintain a public social security system for all citizens, guaranteeing sufficient social support and benefits in situations of need, especially in the event of unemployment, and that additional support and benefits shall be free of charge”.

In other words, social security in Spain consists of a system that has the objective of protecting Spanish citizens in case of need by providing benefits such as in case of unemployment, sick leave or retirement.

The funds for the payment of the different sums are obtained from social contributions, in other words, from the payments made by both companies and workers to the social security system in Spain.

Through the payments of contributions, both payers and their families or dependents will have the necessary protection in the event of any type of eventuality and which is provided for by law.

If someone lives in the national territory, Spanish or non-Spanish residents in Spain, as well as foreigners in a legal situation in Spain, will be able to access Social Security.

Who should contribute to Social Security in Spain?

In Spain, contributions are made according to the type of work you do, depending on whether you are employed or self-employed. The law also includes special regimes for some specific types of work, which we will see below.

If you are an employee in Spain, you must pay contributions under the General Scheme, which includes all workers who work for a company or organisation.

All persons working for others such as companies must be registered in the Social Security system, pay taxes and make contributions in order to receive social security benefits in Spain, such as illness, maternity, or occupational accident benefits, among others.

In this case, part of the contributions are made by the employee by deducting part of his or her salary, and the other part is made by the employer or the company.

If, on the other hand, you are self-employed, that is, you carry out a self-employed activity or have a company or business, then you must pay contributions under the Special Regime for Self-Employed Workers (RETA).

Self-employed workers are also required to pay taxes and social security contributions in Spain in order to access benefits such as those for sick leave or accidents at work.

Finally, there is the Special Regime for Home Employees and School Insurance. The first comprises all those employees who provide services to third parties related to domestic tasks or care of people. The second covers those under 28 years of age who are matriculated in the last two years of secondary school, high school, higher education or university studies.

If you are a citizen or resident of a European Union country and you or a family member has paid social security contributions in that country for two full years, you will be able to access health care (depending on the case in question) as long as you provide adequate justification to the National Institute of Social Security in Spain (INSS).

What kind of benefits do beneficiaries of the Social Security in Spain receive?

These are the main social security benefits in Spain, although the law provides for some more depending on the type of contingency:

Pension for retirement

In order to qualify for a retirement pension, the employer must have contributed for at least 15 years, two of which must have been within the 15 years immediately preceding retirement.

The purpose of this type of contribution is to cover the termination of the person’s income when he or she ends or reduces his or her working life upon having reached retirement age. It is a lifetime pension that only expires upon the person’s passing.

Temporary Disability Pension

If the worker suffers an accident or illness that makes him/her incapable to work temporarily, he/she will be entitled to a benefit.

In the case of an illness or accident that did not occur during working hours, the worker shall receive 60% of his or her salary as an allowance from the 4th day on which he or she was off work until the 20th day, and 75% from the 21st day on.

If the illness or accident occurs during working hours, 75% of the worker’s salary shall be paid as compensation from the day following the leave.

Maternity or Paternity Benefit

Workers who have interrupted or suspended their employment contract on the occasion of leave of absence due to the birth, adoption, guardianship or fostering of a child and who have ceased to receive income are entitled to a maternity or paternity benefit from the Social Security in Spain.

Those who meet the requirements for obtaining this benefit do so from the same day that the worker begins his right to time off.

Social security vs. Private Health Insurance

Although Spain has one of the best social security systems in the world, in some cases, such as health care or retirement, it is always advisable to take out private health insurance or a pension plan given the innumerable advantages they offer.

As an example, some of the benefits of having private insurance include:

Faster medical care compared to the slow pace of the Social Security system in Spain, especially when it comes to making an appointment with the doctor.
Private insurances always have hospitals that you can choose freely.
Same damage coverage no matter the location
Second medical opinion at no extra cost.

Now that you know everything about Social Security in Spain, if you are interested in contracting a private insurance policy at BMI Spain, we can help you find one that meets your needs.

Do not hesitate to contact us if you have any questions about health care in Spain for foreigners, we will be happy to help you.

Registering a foreign car in Spain: complete guide

2 February, 2021/in Laws in Spain /by Bmibrokeradmin

If you live in a Spanish territory and want to bring your car to Spain, in this post of BMI Brokers’ blog we bring you a complete guide for registering a foreign car in Spain.

We detail you how to register a foreign car in Spain and thus drive on the Spanish roads with your vehicle according to the regulations.

Documentation for registering a foreign car in Spain

Any national or foreigner who is resident in Spain has the obligation to register a vehicle, foreign or not.

When registering a foreign car in Spain, the following documents must be presented at the Provincial Traffic Headquarters (Jefatura Provincial de Tráfico) nearest to the place you reside:

Application in official form, you can download it here or get it through specialized agencies, and proof of payment of the relevant fee (97.80€).
ITV card (original and copies).
Proof of payment of Road Tax (Impuesto de circulación). This procedure must be carried out at the Town Hall of the city where the interested party resides.
Proof of payment of Registration Tax (Impuesto de Matriculación). This must be settled at the Tax Office by completing model 576.
Identity card of the interested party. Individuals must present their ID card, driving license or residence card. In the case of legal entities, the tax identification card (NIF) and the accreditation of the representative signed by him/her. Depending on if it is a new or secondhand car bought in the European Union, or a car bought in countries outside the European Union, together with the documentation mentioned above, you will have to present the following documentation.
In the case of a new car purchased in an EU Member State, you must provide the technical sheet of the car and the proof of the VAT (IVA) payment.
If you are buying a second-hand car in a member state of the European Union, you must present the original documentation and the technical sheet of the vehicle, as well as the sales contract and an official translation into Spanish, and pay the corresponding tax.
In the case of a foreign vehicle purchased in a country not belonging to the European Union, the interested party must present the original documentation and the ITV card indicating the importation of the car or the Unique Administrative Document (Documento Único Administrativo – DUA) issued by Border Control.

Registering a foreign car in Spain, step by step

These are the steps to follow when registering a foreign car in Spain:

Moving the vehicle to Spain

The first step is to transfer the vehicle to Spanish territory. Depending on the place of origin, the interested party should study which route is more economical: by road, by boat, by train… or you can drive to Spain yourself, but there are cases in which the journey can take more than one or two days.

ITV Test

It is likely that the vehicle has already passed the ITV test in its country of origin or an equivalent test, but in Spain the regulations state that foreign vehicles have the obligation of taking the ITV test in Spain, even if they have already taken it in their home country.

Vehicles from the European Union normally have no problem passing the ITV test. However, in some cases, vehicle components may have to be modified to comply with Spanish regulations.

For the ITV test you will need the technical sheet and the registration certificate or equivalent document from the country of origin. We recommend that you make an appointment in advance in order to avoid unnecessary delays.

Registration Tax for foreign vehicles

Once you have passed the ITV test, the next step in registering a foreign vehicle in Spain is to pay the registration tax (Impuesto de Matriculación).

To do this, as we indicated at the beginning of this post, you must pay the Registration Tax at the Tax Office by filling in model 576 and paying the corresponding fee.

In addition, in this same administration you can present model 300 corresponding to the payment of VAT, if the vehicle purchased is new, or model 309 corresponding to the Transfer Tax, if the purchase has been made between individuals and the vehicle is second hand. You must also present the Unique Administrative Document (Documento Único Administrativo – DUA) if the car is imported from a non-EU country.

Road tax

Once the model Registration Tax has been presented to the Tax Agency and the corresponding fees have been paid, the next step when registering a foreign car in Spain is to go to the City Council of the place of residence of the interested party and pay the road tax.

As the road tax is a function of the local council, the payment of the fees can vary.

Registering a foreign car in Spain

Once you have all the documentation gathered, and translated by an official interpreter if necessary, the interested party must present it to the Provincial Traffic Headquarters (Jefatura Provincial de Tráfico) and pay the corresponding tax.

With this procedure you will register the vehicle and obtain a new registration number to be able to put it on the car.

How much does it cost to register a foreign car in Spain?

There is no exact price for registering a foreign car in Spain. As you will have seen during the post, the payment of fees and other costs will depend on the different organizations involved in the process and the Autonomous Communities.

In addition to the other costs such as the translation of documents, the transfer of the vehicle or the arrangements that have to be made depending on the ITV test, among others.

Car insurance

Another aspect to take into account when importing and registering a foreign vehicle in Spain is to take out a car insurance, as it is compulsory according to Spanish regulations.

At BMI Spain, insurance broker, we can help you find the car insurance in Spain that best suits your needs. We will show you the best prices from the main insurance companies and advise you, without obligation, so that you can find the policy that you really need.

For more information, do not hesitate to contact us, we will be delighted to help you.

What to do if your car is stolen: complete guide

15 September, 2020/in Laws in Spain /by Bmibrokeradmin

One of the biggest fears that owners of a vehicle have is that it will be stolen. Nowadays it is possible that the car can be taken from anywhere, not only from streets with bad reputation or unknown.

For this reason, at BMI Spain we tell you what to do if your car is stolen.

Check that your car has been stolen

If you want to know what to do if your car is stolen, first check that it is in another street or area and not that it has been stolen.

We often get into the habit of parking our car in the same street or area, and maybe because of some mistake you think it should be there and you actually park it in another street. We recommend that you go around the block before taking the next step.

Another reason why your car is not where you had it parked, other than theft, is the possibility that it has been taken away by a tow truck because it was parked in a prohibited area.

Normally the operator who has taken the car in the crane leaves a sticker attached to the floor, sign or nearest wall, indicating where your vehicle is located, the license plate and a contact phone number. You can also call the town hall to check the status of your car.

Report the theft

If you don’t know what to do if your car is stolen, you should go to the police to report the theft.

You should go to the nearest police station and file a report of the theft of your car and any other personal belongings you may have inside.

Reporting the theft of your vehicle is very important, since not only will a search request be issued to locate it, but also if a crime or traffic infraction is committed, with the report you will be able to demonstrate that it was not in your possession and thus exempt yourself from any type of responsibility.

The police station must provide the following data: identification document, either DNI, residence card or passport, registration number, brand and model of the vehicle, as well as other characteristics like the color.

Do not worry if at the time of presenting the report you forgot to include some personal object, you always have the possibility to return to the police station and extend your report.

Report the theft of your vehicle to the insurance company

Once you have filed a report at the police station and been given a copy of it, what to do if your car is stolen is to report the theft of your vehicle to the insurance company.

Once you have informed the insurance company of the facts and sent them a copy of the report, it will open an incident for the theft of your vehicle.

If you have comprehensive insurance against third parties, including theft, the insurance company will cover the event, and in case the theft is not included, you can at least suspend the insurance policy.

You will have to wait at least 30 days until the company declares the vehicle as missing, and from then on start with the procedures for the compensation.

Discharge the stolen vehicle at the traffic office

Once you have filed a report and informed the insurance company of the theft of your vehicle, you must go to the corresponding traffic office and have it cancelled.

Normally, once you file a report, the police take care of this procedure, but it is better to make sure and do it personally.

Cancelling your vehicle at the traffic office will prevent you from being sanctioned in the event that some type of infraction is committed with your vehicle.

For this procedure you will be asked for the following documents: the car theft report, the driving license, an identification document and the car’s technical sheet, if it has not been stolen.

In the event that the car appears, you can re-register the vehicle at the traffic office.

Communicate the theft of your vehicle to the City Hall

Another step we must take to know what to do if your vehicle is stolen is to inform the Town Hall that it has been stolen.

This procedure is mainly to avoid paying the car’s circulation tax, since we cannot use it.

How do I manage the compensation for the theft of my vehicle?

If it’s been 30 days since the car disappeared and you have already done all the previous steps, this is the next thing to do if you don’t know what to do if your car is stolen.

In order to do so, you must go to the insurance company’s office, where you will be asked to provide the following documents: the original report of the car’s theft, an identification document (ID card, passport or residence card), the receipt of temporary cancellation of the vehicle from the traffic office, the receipt of payment of the last municipal road tax, a report with the owners who have had the car and the keys.

Once the insurance company has ruled out fraud or theft, has the required documentation, with the type of policy and the age of the vehicle, the experts will make an assessment and establish an indemnity.

Normally, companies indemnify with the market value of the car. In other words, the insurance companies economically compensate with the value that the car has in the moment before the theft and what it would be have for sale.

This value depends on the brand, characteristics and age of the vehicle, but does not take into account mileage or maintenance.

In case you do not agree with the value of the compensation, you can claim it before the defender of the Insured Party (Defensor del Asegurado).

What happens if the stolen car shows up?

In the case that once the insurance company has paid you the compensation of the car and it appears, you have two options, either keep the money of the compensation, or return it and keep your car.

In the second case, the insurance company will appraise the car and will take care of the repair of the damages that have been caused by the theft.

Even though coverage for vehicle theft is not mandatory it is highly recommended as it saves you a lot of hassle.

If you are looking for the best car insurance in Spain, at BMI Spain we can help you find the one that best suits your needs.

A good insurance broker looks for the best solution for you. For more information, visit our website, or contact us.

How does the direct debit system work in Spain?

5 August, 2020/0 Comments/in Laws in Spain /by Adam Ubago Hughes

If you want to know how the direct debit system works in Spain, we invite you to continue reading this article:

What is the direct debit system?

The direct debit in Spain, also known as SEPA debit, is the order that a bank receives from its client so that they periodically effect the payment or debit a determined amount.

In other words, the direct debit system in Spain avoids the requirement that the customer of a bank have to authorize or intervene in the payment or the charging of a bill, since the bank has been authorized to proceed to do the payment or the charging.

Some of the bills, such as electricity, water and gas, are periodically charged every month and with the direct debit system in Spain it is possible to avoid having to wait to make the payment constantly.

Advantages of direct debit in Spain

It is very easy to set up a direct debit of your bills into a bank account, which you can do with your insurance policy by requesting it from BMI Spain.

The bank branch can provide you with the necessary forms. In addition, most of the companies also provide a template when subscribing to their service or can set it up for you upon request.

There are many banks in Spain that offer the possibility of direct debiting bills through the Internet and electronic banking. In this way you can manage your payments and also follow up on payments from your home in Spain or abroad.

With direct debit in Spain you ensure that the supply of public services is not interrupted if the deadline for cash payment is not met.

Direct debit does not involve any type of loan or financing, nor does it imply an advance payment by your bank. The amount of the bill will be debited from your account on the day of payment.

There are many advantages that make the direct debit system in Spain, the most common being the following: being able to make free SEPA transfers within the Euro zone, eliminating commissions on an account, being able to use credit or debit cards without any cost, return or discounts of a part of the household bills or a part of the amount of the purchases, discounts in gas stations and big brands or gifts for domiciling the salary, among others.

These advantages depend on the Spanish bank with which you set up the direct debit of your bills, so we recommend that you consult the advantages offered in advance.

Can I set up a direct debit in Spain in any bank account?

In this case, the answer is no, since you can only have your bills paid by direct debit into your current accounts or into your salary accounts.

How can I cancel the direct debit of a bill in Spain?

When you pay your bills by direct debit in Spain, the charges made to your account will remain in force until they are canceled out by the account holder.

Can I return a receipt that has been collected by direct debit?

As we have discussed, the possibility of direct debiting allows us to be up to date with payments and not have to worry about having to order the bank to make the payment every month, and most importantly, not to miss any payments.

Sometimes your bank account may be charged for services that you no longer use, or for amounts that do not correspond.

It is important to note that under Spanish law, the bank account holder has 8 weeks (58 days) to return an authorized receipt. In the case of non-authorized receipts that have been charged by the bank, the time limit increases to 13 months from the time the company made the charge.

This is to protect your rights as a consumer in case of disagreement with the amount that has been charged to the bank account.

You can cancel the payment simply by contacting your local bank branch or through their Internet banking services.

The deadline for the return of the amount that has been charged to the account after the request is 10 working days.

Normally the bank turns the amount paid into the invoice when a receipt is returned, but it may happen that it refuses the return and requires the customer to continue the claim by starting a legal or extrajudicial process.

This is how the direct debit system works in Spain.

One of the bills you can also manage through direct debit is the insurance policy, so you do not have to worry every month about forgetting to pay so you do not lose the insurance.

If you are looking for an insurance policy that suits your requirements, at BMI Spain we can help you with the management so that you do not have to worry about anything.

Do not hesitate to contact us if you have any doubts or questions, we will be happy to help you find the ideal home insurance for you and your family.

How to buy a car in Spain: everything you need to know

30 January, 2020/in Laws in Spain /by Bmibrokeradmin

Knowing how to buy a car in Spain can be tricky sometimes. Did you know that Spain is the second largest producer of motor vehicles in Europe? In BMI we understand that bureaucracy is not an easy matter, and it is even more difficult when you are an expat in a foreign country.

In the following post we will explain to you all you need to know about buying a car in Spain: the paperwork, what documents are required for an expat, what you should ask for from the seller and how to make sure that you are choosing the right car insurance.

At BMI Brokers we can help you to find the best car insurance in Spain for expats. If you are considering buying a car in Spain, then keep this in mind. We will find the best car insurance company and do all the hard work for you. If you are interested, check all our services!

Keep reading to find out how to buy a car in Spain!

How can you buy a car in Spain?

There are two different ways to buy a car in Spain: either from a dealership or from a private seller. Both methods are available for everyone, it does not matter whether you are an expat or not.

If you buy a car from a dealership

It will be easier because the dealer will take care of all the paperwork and the contracts. You will also get a guarantee of one year if the car has any failure. However, usually buying a car from a dealership will cost you more than doing it from a private seller.

When buying a car privately

Buying a car from a private seller is usually cheaper and it will be easier for you to find a real bargain. However, you will have to take care of all the bureaucracy and paperwork and you will not get any warranty on the car.

How to buy a car in Spain: paperwork you will need

First of all, there are certain things that they will require from you when buying a car. Normally, for Spanish nationals they would only ask for your driving license. However, if you are an expat there are a couple of things more that they will require you to have everything in order.

Requirements to buy a car for expats

Here are the things you need to make sure you have if you want to buy a car in Spain:

Your NIE, in other words, your tax identification number.
To have a registered address in Spain, so you will have to provide proof you are recorded with the local town hall by producing a “Certificado de empadronamiento”
You will need to own a property or to be renting one for more than one year. This means that you will have to show also a proof of permanency in the form of your house deeds or in rental contract.

Once you have all these documents in order, you will be able to buy a car in Spain.

How to buy a car in Spain: documents you need to ask for

Having all your paperwork in the right place is very important. We know that the bureaucracy concerned when buying a car depends on each country. Sometimes we might feel a little bit dizzy among all the different documents that are needed. Do not worry, we are here to help you!

Here are the documents you will need to ask the dealer or the private seller for:

The Log Book of the car or Permiso de circulación. This document is meant to be like the identification card of your car and it has the important information regarding the number plate, the model, the name of the owner, etc.
You will need the transfer of the ownership. This document is proof of the transfer of the car from the last owner to you. For this, it is also very important that the vehicle has passed the ITV, the Spanish test that makes sure your car is still roadworthy.
Proof that the road license fee (Impuesto sobre Vehículos) has been paid.

How to choose the right car insurance

Now that you have everything you need, it is time to think about finding the best car insurance in Spain for expats. There are hundreds of insurance companies, searching for the right one can be sometimes feel a little bit complicated.

Types of expat car insurances in Spain

There are two main types of car insurances in Spain. One is third party the other is fully comprehensive. With the latter you can reduce the cost by accepting an increased excess. Each insurance company will have slightly different cover.

Third Party Cover or Terceros

This is the minimum legal requirement. It is also the cheapest option. It covers any damaged done to a third party car in an accident, including also any personal injury that the accident might have caused to the person.

However, it does not cover the damages caused to you or your car.

Fully Comprehensive Cover or Todo riesgo

These types of car insurances will cover most of the eventualities that might occur to you. It includes the material damage to your car and the injuries to the driver and the people who were in the car during the accident.

Normally, it will also cover the damage caused by fire and theft.

→ Things to consider when buying a car in Spain

Some car insurances can cover theft and fire and others might not
Km0 cars are cheaper than new ones because they have already been used for test drives
In Spain it is the vehicle that is insured, not the person
When buying your car privately, you can rely on a “Gestor”, a professional who specialises in red tape who will help you with all the bureaucracy.

Count on BMI to help you find an expat car insurance

Searching for the right insurance is difficult, we know. There are lots of different car insurances out there and we understand that choosing one is difficult. The money you will have to pay, what it will cover, the conditions…

A good insurance broker looks for the best solution for you. Just get in contact with us and we will start working to find the car insurance that fits your needs the best.

How to change registered address of your vehicle in Spain

31 October, 2019/in Laws in Spain /by Silvia

How to change registered address of your vehicle in Spain

It is important to keep your address records up to date in respect of your vehicle, especially if you have moved from one town or province to another.

You can change your address details in one of several ways. Traditionally, you had to make an appointment at the Regional traffic Office (Jefatura Provincial de Trafico). This meant taking time off work and perhaps travelling a significant distance with all the correct paperwork.

More recently, it has become much easier to make these administrative changes. Many town halls have an agreement with their regional traffic Office to collect the paperwork from the local population to make the change of address much simpler.

Not all town halls are signed up to the scheme but you can check to see if your town hall is by visiting this website (Town halls with agreement to process paperwork for Trafico).

If your town hall is on the list then you can change the address for your vehicle. You will need to complete a “solicitud de cambio de domiciliacion” and provide originals and copies of various documentation.

The completed form should then be returned to the Town Hall along with the following paperwork:

The original permiso de circulación (all pages including the front cover)
The original ficha técnica (all pages)
The certificate of Empadronamiento (which you can obtain from the Town Hall, of course)
Your original NIE document

Remember, you should be paying the taxes for your vehicle in the town where you live so it is important to keep the records up to date. Furthermore, if the authorities need to get in touch with you, then if they have the wrong address you will not receive the communication.

BMI brokers insurance give personal attention answering your questions to find the best insurance that fits your needs.

Foreign drivers: collection of fines for traffic offences (Spain)

23 August, 2019/0 Comments/in Laws in Spain /by Silvia

It is important to consider that in Spain a plan is being put in place to track down drivers who are fined in Spain and live in another countries.

But traffic authorities admit payment will be ‘voluntary’ as there is no legal framework for pursuing fines in other countries. This could happen either because it has been impossible to locate the drivers abroad, or because the authorities never bothered with a fine because the cars had foreign number plates.