PROPERTY MATTERS - By Ann Kihlbom

BUYING A PROPERTY IN MALLORCA
When you have got your NIE-number (see last issue of The Islander) and you believe that you have found a suitable property, the next steps are as follows:
1.    Make an offer and agree on a price and the currency (normally euros).
2.    Draw up a reservation-contract to ensure that your bid will not be overruled before you sign the option-contract. Again I strongly suggest you consult a lawyer. Any contract signed between yourself, a seller and a lawyer is legally binding. However, a contract signed simply between yourself and the seller MIGHT not have legal status should you ever have to take your case to court! A reservation-fee should be agreed on. Normally it will be a few thousand euros, depending on the sale-price.
3.     Now the options-contract must be signed. In this very important document the price, date of signing at the notary’s office and any special conditions will be stated. What furniture is included,what fittings, etc. Should you apply for a mortgage, you must agree on a future date (normally 30-60 days ahead) when the deeds can be signed over.  Furthermore, a 10 % deposit of the full sales-price will be paid and stated in the contract. If you are not sure that the bank will give you a mortgage, try and get a clause into the contract that you get, for instance, 30 days to organise a mortgage and if this can not be done, your deposit will be paid back. In many cases this might not be accepted by the seller, but I have personally managed to get this type of contract drawn up at least twice!
The options-contract will also state what charges are to be paid and by which party. In Mallorca it has been normal practice that the capital gains tax (plus valía) is paid by the buyer, but in reality the seller should pay his own dues. It should also be stated that the property is sold “free of charges”.
Should the buyers not be able to fulfill the conditions in the options-contract on due date, their deposit will NOT be paid back. Should the vendors not be able to fulfill their obligations on due date, they must pay back the double amount of what was agreed on in the contract!
4.    Your lawyer will have requested a copy of the deeds and subsequently have got a copy from the property-registry to check ownership and possible charges, like a loan or a mortgage, on the property.
In the next issue of The Islander I will write more about mortgages for foreigners in Spain. But, before then I would like to take this opportunity to wish you a wonderful Christmas; may all your dreams come true, and all the best in the New Year!
By Ann Kihlbom, who can be contacted on:
971-697 256 or 687 329 509

TAX AND LEGAL MATTERS - By Carlos Espinosa

THE SPANISH SHIP REGISTRY

 

After the study of the German Ship´s registration system last month, this article will  look at the Spanish registry. According to the Spanish Law, ships and vessels built or imported in Spain shall be registered in the Spanish Registro de Matrícula de Buques in the Capitanía Marítima of the maritime district. If not, penalties up to €120.202,42 can be levied.

Although this is only in theory, because our experience is that at least for private yachts, no penalties are charged for not recording in the Spanish Registry, as long as the tax obligations (VAT and Matriculation Tax) are duly fulfiled. The tax law has stricter preventive measures as it permits the authorities to seize the ship, until the tax and administrative situation of the vessel is regularised. 
Recording (or flagging) of a vessel under Spanish Administrative legislation is an administrative act which grants all the rights and protection of the Spanish Laws, to boats that fly the Spanish ensign. It permits the State to record the vessel in the Spanish Ship’s Registry, and to exercise all the faculties or obligations related to the boat.
Unlike the German and the British system, the Spanish Ship’s Registrar has a peculiar and unique double registration system which is adopted in the Port’s Act (Ley 27/1992 de Puertos y de la Marina Mercante, hereinafter LPMM) and the Royal Decree of Ship’s Registry and Matriculation, Real Decreto 1989/1859 de abanderamiento, matriculación y registro marítimo):


a)    On the one hand there is the Administrative Ship´s Registry administrated by  the “Capitanía Marítima” or the Spanish Maritime Authority (the Registro de Matricula de Buques, or Registro Marítimo or Registro Administrativo). It is divided in 9 sections or Listas, the most common of which are Lista 6ª for charter, or Lista 7ª for private use. This  is a public Registry and does not relate to commercial activities, although it does cover economic activity. If the vessel is in charter use, then besides being recording in the 6th List, the name of the company that is chartering also has to be noted..
b)    On the other hand, the ship can also be recorded in the Commercial Ship’s Registry administrated by the Mercantile Registry (the Registro de Bienes Muebles Sección 1ª,  also called Registro de Buques) and offers private juridical publicity erga omnes against third parties. It is part of the Mercantile Registry, and is therefore regulated under the rules of the Registro Mercantil..
The following documents have to be presented for the Spanish Ship Registration;
* The application with 3 names for the vessel
* Bill of sale (showing VAT)
* Deletion of the country of registration, only when the flag is changed.
* Original and copy of the user manual, and translation of  its contents which show the make and model, series-no, length etc.
* Certificate of the motor, customs clearance for the engines, if the boat has  come from EU or from the importer if it is from outside the EU
* Inscription (certification of sea                  worthiness/surveyors report)
* Copy of the DNI or residencia
* Matriculation tax payment (Unless the boat is less than 7.5 metres)
* Original of the conformity declaration (to Directive 94/25/EC ISO 6185, ISO EN 10087)
* Certification of sea worthiness/surveyor (cert. of tonnage survey) Declaration of Conformity (UE Homologation), Tonnage and Builder’s Certificate
* Fees of the inscription €16,60 (modelo 790)

For further queries on Spanish flag registration please contact:
Carlos Espinosa - Abogado


Calle Benito Feijoo, 2 local 4
07181- Portals Nous
Tel: + 34 971 67 094 47
Mb: + 34 627 41 32 01
Email: info@iurisnautic.com

RESIDENTS CORNER - By Sandra Eagles

How should I set up my business?

I am often asked about on the best way to take over or set up a business here on Mallorca. 
This can be anything from looking at the viability of a type of business working in Spain to what to look out for before entering into a contract with a landlord, or for that matter before buying an existing business. 
I wish I had a euro for every time I hear “back at home” meaning how things work in the U.K.  Equally I wish I had another euro for me saying “but you are not back at home”.  At the risk of stating the obvious, we are in Spain and Spain is not the U.K!
For a start there are rules and regulations governing licenses and planning permissions which are fundamentally different.  In addition whether the decision is to become “autonomo” which is self employed, or to become a “C.B.” which is a partnership, or to become an “S.L.” which is similar to a limited company, there is a requirement to state in print the activities to be carried out by the business entity.
Autonomo (self employed) is where an individual decides to work for him/herself, offering goods or services to others.
To trade the individual must be registered with Hacienda (Tax Agency) and Social Security and is required to make payments of tax and I.V.A. (equivalent to V.A.T.) quarterly and social security payments monthly.
The general guideline for being autonomo is to work for more than one company or person, but not to work for one company or person for more than 75% of your time.  This regulation has been introduced recently to stop companies from avoiding employing people on a proper contract and paying their social security.
What can be claimed as legitimate business expenses differs from the U.K ; so for instance you cannot claim for expenses of an office working at home unless the access to your office has a separate entrance from your living space.
I have been providing business set up, accounting and taxation services for autonomo clients for some time and whilst there is a need to present accounts on a quarterly basis only, I insist on being provided with income and expenses information on a monthly basis to ensure that clients are able to claim for all legitimate expenses and have time to get official invoices (facturas) where these have not been automatically given by suppliers.  Next time C.B.
Whatever you are doing for business or leisure this Christmas  have a great time, and I wish you all the best for 2008.

Sandra Eagles
Spanish Solutions
971 790 922 or 609 232 263
Email: eagleshaslanded@yahoo.co.uk

DOCTOR AT SEA - By Dr. Ken Prudhoe

SCTW95 AND ALL THAT!

SCTW95 starts to run off the tongue after a few weeks in the yachting industry but it is not an easy abbreviation to pin down - so here goes. The Standards of Training Certification and Watchkeeping for seafarers were originally agreed at a Convention of Member Governments of the International Maritime Organisation in 1995 and were presented as a Code of mandatory requirements affecting the whole range of roles and responsibilities on board ship. 

The associated certification in these various roles and responsibilities was established to promote safety of life and property at sea and to protect the marine environment and seeks to ensure that seafarers on board ship are qualified and fit for their duties at sea.
Basic training under the Code is the mandatory minimum requirement for all seafarers, other than passengers, “employed or engaged in any capacity on board ship on the business of that ship”. The Basic Training Certificate has four components which include Personal Survival Techniques, Fire Fighting and Fire Prevention, Personal Skills and Social Responsibility, and Elementary First Aid and successful completion of these SCTW95 courses is now, as of earlier this year, also required for commercial endorsement of RYA certificates of competence.
Courses for Elementary First Aid (EFA) certificate run over one day and cover the basic principles of first aid, first response treatment of a casualty and basic life support. There are no entry requirements other than that candidates must be 16 years or more of age. Following this basic training, there are hierarchies of qualifications in the different skills required by more senior seafarers, and this month´s article focuses on the qualifications in first aid and in medical care.


The Medical First Aid (MFA) course provides more far-reaching first aid training than the EFA course, particularly for those designated to provide medical first aid on board ship. Candidates must be 16 years or more and must have at least six months sea service to be eligible for the course. Candidates are assessed during the practical exercises and via a multiple choice examination at the end of the course. Successful candidates receive a Proficiency in Medical First Aid certificate which is valid for five years.
The Medical Care on Board Ship (MCOBS) course, previously known as the Ships Captains Medical Course, meets the requirements for seafarers who are designated to take charge of medical care on board ship. The course covers advanced life support, disease management and efficient patient management and the role of radiomedical advice. Candidates must be 21 years or more and have a valid MFA certificate as well as at least eighteen months sea service. As in the MFA course, candidates are assessed during the practical exercises and via a multiple choice examination at the end of the course. Successful candidates receive a Proficiency in Medical Care certificate which is valid for five years.
The Update for Medical Care on Board Ship (UMCOBS) is a refresher course for the Proficiency in Medical Care and is required every five years. Recent communications with the UK Maritime and Coastguard Agency indicate that a date-expired Proficiency in Medical Care certificate is an acceptable prerequisite to take the Update course, although clearly an out-of-date certificate is no longer a valid qualification.
The MFA and the MCOBS (and Update) certificates form part of the formal requirements for seafarers seeking more senior positions at sea, but hopefully the training is also enjoyable and worthwhile. Sometimes health and safety regulations seem to stifle spontaneity and adventure (there are 231 pages in the SCTW Code of 1995.) A number of individuals do undertake health-related training for their own personal satisfaction or a personal risk assessment before long private voyages, sometimes with very limited crew numbers. The yachting industry has been relatively unregulated in the past but the climate is changing rapidly. At the same time, there are increasing opportunities for training on the island to provide seafarers at every level with the knowledge and skills to fulfil the worthwhile aims of SCTW95

Dr Ken Prudhoe, MCA Approved Doctor,
can be contacted at the Medical Centre,
Club de Mar, Palma de Mallorca.
Tel:+34 639 949 125

TECHNOLOGY UPDATE - By Roger Horner

Amsterdam, Antigua and finally Christmas gadgets.

Another year has flown by, and here we are again at Christmas. It brings back memories of my article last year and the most popular gadget – the slippers with headlights!  I had numerous requests for further information. If anyone actually acquired a pair it would be great to hear how you got on with them.

In mid-November we were exhibiting at the Super Yacht Pavilion and the Global Super Yacht Forum at the Marine Equipment Trade Show (METS) in Amsterdam. The 20th edition of METS was huge this year, and visitor numbers had increased by 3,000 over last year. The total tally was nearly 20,000.  If you are looking to buy anything at all for a yacht, then this is the place to come. It has everything you could possibly imagine being shown by over 1,100 exhibitors. However, there are no actual yachts for sale at the show, so all the stands are selling equipment without the distraction of glorious yachts!
From our electronics perspective, everything currently available on the market for yachts under 35m was on display, from navigation to communications to entertainment. Many new products are showcased at METS so there was a chance to see the latest innovations.  As I mentioned last month, METS was the launch platform for a number of new products.  We were also intrigued to see one exhibitor still promoting a product that they launched last year, but which doesn’t actually work.  So, even though you see something that’s glossy and shiny it doesn’t actually mean it’s good.
The Super Yacht Pavilion is like the VIP lounge of METS, but without the access exclusivity.  This is where, for the first time, we had our stand although we have of course visited every year.  We found it superb, and will definitely be there next year.  We were promoting communications technology with a focus on VSAT and Fleet Broadband. At this time of the year, our clients are heading for the Caribbean, and this year a good number are heading for the Indian Ocean.  So we have been instrumental in making sure we can provide communication services in the Indian Ocean Region and have even extended our services to the south west Pacific.


The Global Super Yacht Forum was in the same building alongside the Super Yacht Pavilion and combined with METS was responsible for bringing a whole collection of key people in the super yacht industry to Amsterdam.  The Forum has some very interesting subjects and panels, but on the whole was a little short on innovation.
After the show like many others in the industry, we took the opportunity to visit various yards, which is always useful and a treat when in Holland.
Then it was back home to Mallorca for a few days, and then off to Antigua from whence I have just returned.  I can report that all over there are ready and waiting for the influx of yachts from the Med. There is a hope and expectation that as the East Caribbean dollar is tied to the US dollar, more yachts will be heading over there this  winter. Will this be true? At METS I met Billy Smith, the CEO of Trinity Yachts, and when I suggested to him that he must be very happy with the dollar crash as many clients will be interested in building a new yacht in the USA, he said that their build slots were already full up to 2012 even before the dollar crash, and these new potential clients are not prepared to wait for a build slot in 2012!
Antigua was preparing for Charter Week, followed by the Superyacht Cup in mid December, both of which events will have taken place by the time you read this.  At the Monaco Show in September, a handshake took place between government representatives of both Mallorca and Antigua to form a marine industry alliance. This was as a result of the Superyacht Cup being run in both locations. There has been very little publicity about this, but hats off to Patrick and Spike.  
The various bars and restaurants were having their opening nights and a few yachts were arriving each day. There is a new air of optimism about, as the Antiguan government’s policy is to put a strong focus on the yachting industry. We met up with an old yachting friend who lives there, Andrew Blatter, founder and publisher of the excellent Superyacht Services Guide, which now covers both the Caribbean and the Mediterranean in separate editions, and is soon to have a US edition added to the stable. As a result of his work he knows everyone on the ground and was kind enough to introduce us to all the movers and shakers in the local yachting industry.  
And now the part you’ve all been waiting for - Christmas gadgets.  Gadgets and gizmos are fun at any time of the year, but at Christmas we don’t need to feel so guilty about indulging ourselves… Here’s a small selection of my current favourites.

Borat’s Bikini
I know this is not a gadget. It is a bikini for men! Let's take a dispassionate look at the functional benefits of the mankini over more conventional swimwear. First, it's a one-piece for convenience. Then, it's lurid shade of lime, meaning that it's going to get you seen. It's safe when you're in the water. Crucially, it possesses a pouch in which to safely stow one's crown jewels. And finally, it is emblazoned with the Borat cinematic logo device, just in case anyone should think your efforts serious. So there you have it. An amazing Secret Santa!  A self-deprecating poolside appearance.
 
Paintball Shotgun for 18+!

You need to proceed with great caution when handling this equipment. It unleashes fire-power of indescribable proportions and is, by far, the most powerful of all Pinmar’s paintball products!! It is all because of the Paintball Shotgun's capacity to hold 20 paintballs and fire them at a range of over 60 feet. So here’s an excerpt from the instruction manual “Load your bio-degradable paintballs into the firearm's magazine. Lock into place and hold the Paintball Shotgun with both hands. Carefully scout out for your opponents yacht hiding in the marina or yard, and when you spot your target, squeeze the trigger. Your opponent’s boat will be covered in paint in no time, reasserting your dominance in the field of yacht painting showdowns. You may proceed to shout uncontrollably whilst beating your fists against your chest after use”.

Rocket Fishing Rod

As all we viewers of the Discovery Channel know, fishing is an extreme sport! If you spot the creature you want, then the Rocket Fishing Rod will make catching it a whole lot less troublesome and more fun. You see, the Rocket Fishing Rod eliminates the need for casting. It also incorporates a shotgun type mechanism which fires out the hook, line, and sinkers up to 30 feet. The baited hook sits within a unique capsule that releases it as soon as the capsule hits the water - this doubles as a float when in the water, alerting you to when your creature is biting the bait.
Note: you will need a fishing and shotgun license here in Mallorca unless of course you have your Class 4, then you can do anything.

 

Man Skills – A Training Manual for Men
by Nick Harper

This is the ideal Christmas gift for the man in your life – provided he is able to read! Apparently the problem with most men these days is that they know very little about the really important life skills. They may be able to exfoliate and download all that modern stuff, but, faced with a dripping tap or fish that needs gutting, most men will have to look it up in a book or sheepishly consult their antipodean friends!
Somewhere along the line, a vital communication link between fathers and sons has short circuited. All the marvellous skills the older generation mastered, all the wisdom of a lifetime spent fixing, catching, bludgeoning stuff to death, have somehow failed to transfer to the modern man.
Indeed Nick Harper reached the age of thirty-two before realising he didn't even know the basics, so he scratched his head for a while before deciding to learn them. He covers the essentials, like how to wire a plug, win at arm-wrestling, choose a suit, bleed a radiator and dance without looking like a hopeless moron.  Then there are the more interesting skills, like how to throw properly (and not like a frilly girl), how to fend off a dangerous beast (including dogs, sharks, angry bulls and alligators), how to rip a phone book in half with your bare hands, and how best to jump from a speeding train…..

And last but not least - A very merry Christmas to all our clients and friends here in Mallorca.
We would all like to thank you for your business and friendship in 2007, and wish you all the very  best for 2008. Team e3

 

By Roger Horner of E3 Systems
For any answers, questions or information on any of the above, please contact us.
email on info@e3s.com and website www.e3s.com
Tel: +34 971 40420/400738/702975