Dictionary of legal terms

Original ineffectiveness of a legal act due to breach of a mandatory or prohibitory rule or absence of an essential element. Cannot be ratified, may be raised by anyone, and the judge may assess it ex officio. Not subject to any prescription period.

Exercise of a subjective right contrary to the economic or social purposes for which it was recognised, or causing damage to third parties. Prohibited by Art. 7.2 CC. Legal consequence: compensation for damage caused and measures to put an end to the abuse. Common in horizontal property, unfair competition and contract disputes.

Mode of acquiring ownership or real rights through continuous possession for the legally fixed period. Ordinary: requires just title and good faith (10 years among present parties, 20 among absent for immovable property; 3 years for movables). Extraordinary: only public, peaceful and uninterrupted possession (30 years for immovables; 6 for movables). Basis: legal certainty and effective use of assets.

Declaration of will, judgment, knowledge or desire issued by Public Administrations in the exercise of administrative power. May be favourable (authorisations, grants) or burdensome (sanctions, orders). Presumed valid and self-executing.

Request for review of an administrative act before the Administration itself. Types: hierarchical appeal (before superior body, 1 month to file), optional reconsideration appeal (before same body, prior to judicial review) and extraordinary review appeal. Silence on hierarchical appeal is deemed dismissal.

Ordinary appeal against acts that do not exhaust the administrative route, filed before the hierarchically superior body. Deadline: 1 month for express acts, 3 months from negative silence. If the Administration does not resolve within 3 months, it is deemed dismissed (negative silence). Exhausts the administrative route.

Appeal before the administrative courts to challenge acts and provisions of Public Administrations. Time limit: 2 months from notification of the act or from the deemed rejection by negative silence. The TSJ Chambers and the National Court hear the most significant cases. Interim suspension of the challenged act may be requested upon filing the appeal.

Burdensome act imposed by the Administration as a consequence of an infringement provided for in law. Can only be imposed through a sanctioning procedure with prior hearing. The non bis in idem principle prohibits double jeopardy for the same facts.

Legal effect produced when the Administration fails to resolve within the legal deadline. Silence may be positive (request deemed granted) or negative (request deemed rejected). Generally, silence is positive in procedures initiated at the request of the interested party; negative in ex officio procedures and certain regulated ones (planning licences, activities in public domain).

Legal institution establishing a parent-child bond between adopter and adoptee, extinguishing ties with the biological family (except in open adoption). In Spain it requires a court order. Adoptees over 12 must give their consent. International adoption is governed by international conventions and the law of each country of origin.

Exclusive Lexiel feature that automatically analyzes the opposing party's arguments, identifies weaknesses in your strategy and proposes counter-arguments based on case law.

Contract by which an agent undertakes to promote commercial transactions on behalf of a principal permanently in exchange for remuneration. On termination, the agent is entitled to goodwill indemnity if they have built new clientele (at least 1 year of average commissions). Governed by Law 12/1992.

Circumstance that increases the severity of the crime and allows imposing the sentence in its upper half. Includes: treachery, abuse of superiority, disguise, price, discrimination and recidivism.

EU Regulation 2024/1689 establishing the world's first legal framework for artificial intelligence. Classifies AI systems by risk: unacceptable (prohibited), high risk (subject to strict requirements), limited and minimal. Gradual application 2024-2027.

EU Regulation 2024/1689 (AI Act) requires compliance measures based on the AI system's risk level. High-risk systems (recruitment, justice, education) require technical documentation, registration in the EU database, human oversight and conformity assessment. Gradually in force from August 2024.

Phenomenon where an AI model generates false information that appears correct, such as fabricated legal citations. Lexiel prevents hallucinations by verifying every citation against official sources (BOE, CGPJ).

Ordinary appeal before the superior court reviewing the lower court's decision on both facts and law. In civil matters, the Provincial Court resolves appeals against Court of First Instance judgments.

Ordinary appeal allowing challenge before the superior court (Provincial Court or High Court of Justice) of a first-instance decision. Civil appeal admits new documents in specified cases. The court may confirm, reverse or modify the appealed decision.

Alternative dispute resolution method in which parties submit their dispute to private arbitrators, whose decision (award) has the force of res judicata and is enforceable like a court judgment. The arbitration agreement excludes ordinary jurisdiction. In Spain governed by Law 60/2003, inspired by the UNCITRAL Model Law.

Agreement by which parties undertake to submit their future disputes to arbitration rather than ordinary courts. Excludes judicial jurisdiction. The arbitral award has res judicata effect and is enforceable as a judgment.

Execution phase of an offence that is not completed due to causes beyond the perpetrator's will. Attempt is punished with a sentence one or two degrees lower than the completed offence. Distinct from voluntary desistance, which exempts from punishment.

Simplified procedure by which lawyers and court agents can claim their fees or rights from the client directly, without a declaratory trial. The court summons the client; if they neither pay nor contest, the amount is directly enforced.

Personal guarantee by which a financial institution commits jointly and severally to pay a third party's debt if they default. Autonomous from the main debt (the principal debtor's defences cannot be raised). Widely required by the Tax Authority for deferrals, by the Administration in public procurement and by courts for interim measures.

Increase of 30% to 50% of Social Security benefits when an occupational accident or disease is due to the employer's failure to implement safety measures. Compatible with civil liability and not insurable.

Negotiable instrument by which the drawer orders the drawee to pay a specified amount to the payee on a fixed or sight date. Provides direct exchange action against the acceptor and recourse against the drawer and endorsers.

Negotiable instrument by which the drawer orders the drawee to pay a specified amount to the holder on a fixed date. The accepting drawee becomes the principal obligor. Can be transferred by endorsement. Direct action against the acceptor is time-barred at 3 years; recourse action, at 1 year.

Mechanism to obtain a pronouncement from the DGT on the application of tax rules to a specific situation before the tax liability arises. The DGT responds within 6 months. If the ruling is binding and the taxpayer applies the DGT criterion, they are exempt from penalty liability even if the ruling is wrong, provided the facts match the ruling.

Collegiate management body of public limited companies. Acts by majority; the chairman chairs meetings. Directors have duties of diligence and loyalty: no unfair competition, no conflict of interest, duty of confidentiality. Must meet at least once per quarter.

Rule determining who must prove the facts in proceedings. Generally, the claimant bears the burden of proving constitutive facts and the defendant bears it for obstructive or extinguishing facts. In consumer law, the burden is reversed.

Automatic transfer of employment contracts to the new business owner upon succession (sale, merger, transfer of autonomous productive unit). The new employer takes over prior labor rights and debts.

Transfer of a business, workplace or productive unit that retains its economic activity and its workers, who are automatically transferred to the new employer. The transferor and transferee are jointly liable for prior labour obligations for 3 years.

AEAT administrative registry describing rural, urban and special-characteristic properties: location, area, use, quality and cadastral value. Cadastral value is the IBI tax base and reference for ISD, IRPF (capital gains) and IIVTNU. Usually differs from market value.

Extraordinary appeal before the Supreme Court against second-instance judgments. Based on cassational interest: law infringement, contradiction between Provincial Courts or case law doctrine.

Provisional registry entry publicising the existence of litigation or proceedings that may affect the ownership or encumbrances of a property. Initial term of 4 years, extendable. Does not confer the full effects of registration.

Negotiable instrument by which the drawer orders a bank (drawee) to pay on sight a specified sum to the designated payee. Banks do not "accept" cheques; their liability is account coverage. Limitation of action: 6 months.

Monthly financial benefit paid by the non-custodial parent to the custodial parent to meet the minor child's needs. Set according to the obligor's income and the minor's needs. Updated annually in line with CPI. Includes food, clothing, education, healthcare and extracurricular activities.

Obligation to repair damage caused to another person. May be contractual (breach of contract, Art. 1101 CC) or non-contractual (tort, Art. 1902 CC). Reparation may be in kind or monetary.

Obligation to compensate damage caused by the crime, enforceable within the criminal proceedings. Includes restitution, repair and compensation. The criminally liable person is jointly liable with any civilly liable third party.

Continued validity of a collective agreement after its denunciation and during negotiation of the new agreement. Since the 2012 labour reform, Art. 86.3 ET limits survival to one year after denunciation; once that period passes without a new agreement, the higher-level agreement applies, or failing that, the ET.

Agreement between worker representatives and employers regulating working conditions in a sector or company. Has regulatory force and is published in the BOE or regional gazette.

Procedure to terminate contracts for economic, technical, organizational or production reasons exceeding legal thresholds (e.g. 10 workers in 90 days in companies of 100+). Requires consultation period with union representatives.

Lease of premises for business or professional use, governed by Title III of the LAU. Unlike residential leases, parties have greater freedom to agree duration, rent and extension conditions. The tenant enjoys a right of first refusal and, where applicable, goodwill compensation on termination.

Default matrimonial property regime in Spain (unless otherwise agreed or where foral law applies). Assets and earnings obtained during marriage are common; those prior to marriage or received by inheritance or donation are private. Liquidated upon divorce, separation or death.

Default matrimonial property regime in Spain. Assets and gains acquired during marriage by either spouse are jointly owned. Private assets (pre-marital, inheritances, gifts) belong exclusively to each spouse. Dissolved by separation, divorce, death or prenuptial agreement.

Rights-restricting substitutive penalty requiring the convicted person to provide unpaid cooperation in public-interest activities. Requires the convicted person's consent. Each unpaid fine-day equals one day of community service.

Natural or legal person responsible for the management and representation of a company. In an SL, they may be sole, joint and several, joint, or board directors. They are personally liable towards shareholders and creditors for breach of law or causing damage.

Form of participation in an offence consisting of cooperating with prior or simultaneous acts not considered necessary for execution. The accomplice receives a sentence one degree lower than the perpetrator. Distinct from co-authorship (control of the act) and necessary cooperation.

Coercive deprivation of assets or rights by the Administration for reasons of public utility or social interest, with corresponding compensation (fair price). Requires a declaration of public utility, necessity of occupation, and prior payment or deposit of the fair price.

Compulsory deprivation of ownership for public utility or social interest, subject to prior payment of just compensation. The procedure comprises: utility declaration, list of assets, just price determination and occupation deed. The expropriated party may challenge the just price before the Expropriation Jury and, on appeal, the Administrative Court.

Situation of an investigated person who, not being held in pre-trial detention, is subject to certain precautionary obligations: periodic appearances, travel ban, passport withdrawal, continuous monitoring or bail.

Legal regime for buildings divided into flats or premises with common elements. Each owner holds exclusive ownership of their private element and a participation quota in the common elements. The Owners Community adopts resolutions at meetings and is governed by the LPH 1960 (amended in 2024 for energy efficiency).

Appeal to the Constitutional Court to protect fundamental rights (Arts. 14-29 and 30.2 CE) violated by a public authority. Requires exhausting ordinary judicial routes and demonstrating special constitutional significance (since LO 6/2007). Only 1-2% of appeals are admitted.

Plurality of actions or omissions that would individually be offences, carried out by the same person exploiting identical opportunities or violating the same provision, assessed as a single unit. The sentence is fixed in the upper half of the most serious offence.

Crimes committed by de facto or de jure directors of commercial companies: imposing abusive resolutions (Art. 291 CP), preventing or limiting shareholder rights (Art. 292 CP), falsifying accounts (Art. 290 CP) or fraudulently disposing of company assets to the detriment of shareholders or creditors (Art. 295 CP).

Since 2010, legal entities may be criminally liable for certain offences committed on their behalf or for their benefit, by persons with management powers or by those acting under their supervision. Penalties include fines, dissolution, suspension or prohibition of activities.

Legal persons may be criminally liable for crimes committed on their behalf by their legal representatives or by those acting under their authority when the company has not adopted effective prevention measures (criminal compliance). Penalties may include fines, dissolution, suspension, disqualification or judicial administration. LO 1/2015 requires an effective prevention model and a supervisory body (compliance officer).

Reverse of a merger: a company splits, transferring all or part of its assets to one or more beneficiary entities. Total demerger: the demerged company is extinguished and its assets distributed among the beneficiaries. Partial demerger: only a branch of activity is segregated, the original company surviving.

Taxes the income of legal entities resident in Spain. General rate: 25%. SMEs and newly formed companies (first 2 years): 23%. Fiscally protected cooperatives: 20%. Tax base = accounting profit ± fiscal adjustments. The financial year usually coincides with the calendar year; the return is filed 25 days after the 6 months following the close.

Corporate operation integrating two or more companies into one. By absorption: the absorbed company is extinguished and the absorbing company takes over its assets. By new incorporation: all companies are extinguished and a new company is created. Requires a merger project, approval by general meetings and registration.

Direct local tax levied on the ownership of real property. The tax base is the cadastral value of the property. The rate is set by the municipality within legal limits. The taxpayer is the owner or holder of a real right over the asset.

Claim filed by the defendant against the claimant in the same proceedings, taking advantage of the pending litigation. Must be connected to the main claim or it will be declared inadmissible. Processed alongside the main claim and resolved in the same judgment.

First phase of criminal proceedings led by the investigating judge to investigate the offence, identify the responsible party and adopt precautionary measures. Includes investigative proceedings (statements, searches, expert reports). Ends with the order to open oral trial or dismissal.

Criminal modality in which the subject causes the prohibited result through breach of the duty of care (negligence) without intent. The Criminal Code only punishes serious negligence (Art. 12 CP). Minor negligence was decriminalised in 2015. In traffic accidents, serious negligence (deaths, serious injuries) is the most common type.

Legal protection institution for persons with disabilities who need support in making decisions. Following Law 8/2021, curatorship is the standard measure replacing incapacitation. The curator complements or represents the person under curatorship according to the court-determined scope, always with the least-restriction principle.

Category of crimes using computer systems as means or targets: unlawful access (Art. 197 bis CP), computer damage (Art. 264 CP), computer fraud (Art. 248.2 CP), identity theft and malware distribution. National Court case law is most relevant.

Agreement between mortgage debtor and lender whereby the property is surrendered to fully extinguish the debt, even if its value does not cover the outstanding loan. Not an automatic right of the debtor but a voluntary agreement, except for debtors below the exclusion threshold (Royal Decree-Law 6/2012).

Situation of the defendant who fails to appear or answer the claim. Does not imply acceptance or admission of facts. The defaulting party may join the proceedings at any time without rolling back actions.

Circumstances nullifying the validity of contractual consent: mistake (false representation of reality, essential and excusable), fraud (deceit induced by the other party), violence (physical force) and duress (serious and unjust threat). The time limit to bring a nullity action for defective consent is 4 years from contract completion (Art. 1301 CC).

Mechanism to hold company directors liable for damages caused to the company. Exercised by the company following shareholder meeting resolution, or subsidiarily by shareholders holding 5% or creditors.

Directors are liable to the company, shareholders and third parties for damage caused by acts or omissions contrary to law, the articles or breach of the duties inherent in their position (loyalty and diligence). The derivative action is brought by the General Meeting or, subsidiarily, by shareholders holding 5% of capital. The individual action allows direct recovery of damage caused to a third party.

Second chance mechanism for insolvent individuals. Allows discharge of unsatisfied liabilities after insolvency liquidation if requirements are met (good faith, no conviction for economic crime, prior attempt at agreement). 2022 reform simplified access and eliminated the mandatory prior payment plan.

Judicial decision ending criminal proceedings without a judgment. Free dismissal (Arts. 637 LECrim) produces res judicata effects. Provisional dismissal (Art. 641) does not prevent reopening if new evidence appears.

Mandatory written notice that the employer must deliver to the worker for disciplinary dismissal. Must include the imputed facts and the effective date. Lack of written form or specific facts renders the dismissal unfair.

Accessory or principal penalty depriving the convicted person of certain rights or public offices. Special disqualification is limited to specific rights; absolute disqualification affects all public offices and political rights.

Part of a company's profit distributed to its partners or shareholders in proportion to their participation in the capital. The general meeting decides whether to distribute or transfer to reserves. Subject to tax withholding (19-28% depending on amount). LLCs may distribute advance dividends with limits.

Dissolution of marriage by court order. Since the 2005 reform, divorce is direct (without prior separation) and non-fault: the will of one spouse suffices. If agreed, it may be by mutual consent before a notary or court registrar.

Principle preventing contradiction of prior conduct when it has created a legitimate expectation in the other party. Expressed in the maxim venire contra factum proprium non valet. The Supreme Court requires three elements: relevant prior conduct, induced legitimate expectation and contradiction with subsequent conduct. Applies across civil, commercial, procedural and administrative law.

EU Regulation 2022/2554 on digital operational resilience for the financial sector (banks, insurance, investment platforms, fund managers). Obligations from January 2025: ICT risk management, major incident reporting, resilience testing (including TLPT), third-party ICT provider risk management and registration of critical providers with ESMA/EBA.

The DSA (EU Reg. 2022/2065) regulates digital intermediary liability for illegal content. The DMA (EU Reg. 2022/1925) imposes obligations on gatekeepers (Google, Meta, Amazon, Apple) to ensure contestable digital markets. Direct application in Spain from 2024.

Amount given as a signal when entering a contract (usually sale). Penitential earnest money (Art. 1454 CC) allows withdrawal: buyer loses the deposit, seller returns double.

Real right limiting ownership that imposes a burden on the servient tenement (burdened property) for the benefit of the dominant tenement (benefiting property) or a person. May be predial (right of way, light and views, aqueduct) or personal. Voluntary easements are created by legal act; legal ones, by statute. Right-of-way easements are the most common in litigation.

Tax document issued and received in electronic format, with the same legal value as a paper invoice. Mandatory between companies and self-employed (B2B) from 2025 (Crea y Crece Act). In transactions with the Public Administration it is mandatory since 2015 (FACe). Compatible with VeriFactu.

The eIDAS Regulation (EU 910/2014) distinguishes three levels: simple (electronic data), advanced (linked to the signatory with exclusive control) and qualified (with a qualified trust service provider certificate). Only the qualified type has equivalent effect to a handwritten signature. In Spain: Law 6/2020.

Legal act by which a minor acquires full legal capacity before reaching 18 years of age. May occur by marriage, grant by parents (from age 16, with minor's consent, before a notary or judge) or judicial grant. The emancipated minor can manage their person and assets but cannot borrow, encumber or alienate immovable property without parental or curator consent.

Procedural phase giving effect to a final judgment. The claimant asks the court to invite the debtor to voluntarily comply (within 20 days); failing that, enforcement measures are taken: asset seizure, judicial administration, etc.

Judicial procedure to recover possession of a property due to non-payment of rent or expiration of the contractual term. Regulated as oral proceedings with special rules.

Power of the Administration to declare the nullity of its own void acts, ex officio or at the request of the interested party. Requires a favourable opinion from the Council of State or equivalent advisory body. Not subject to any time limit.

Person appointed by the testator to execute their will: pay debts, deliver legacies, promote inventory and safeguard the estate. May be general or specific, joint or several. The appointment lasts the period set by the testator (maximum one year, extendable).

Grounds excluding criminal liability: mental disorder, necessity, self-defense, irresistible fear, performance of duty, exercise of a legal right. If incomplete, it mitigates the sentence.

Evidence consisting of the technical opinion of a specialized professional on facts relevant to the proceedings. May be appointed by the parties or by the court.

Person who, by reason of their profession or trade, has witnessed facts relevant to the proceedings and can also provide a technical opinion on them. The court may weigh their testimony jointly as testimonial and expert evidence.

Extinction of actions and rights through the passage of the legally fixed time without exercising them. Unlike limitation (which operates by operation of law), prescription may be interrupted by acts of the holder or debtor's acknowledgment. General period: 5 years for personal actions (Art. 1964 CC).

Termination of contract due to disciplinary reasons or duly evidenced objective reasons. Does not generate severance pay for termination (though notice may apply for objective dismissal). The worker retains the right to unemployment benefit.

Abbreviated criminal procedure for offences punishable by less than 5 years committed flagrantly or where the suspect is identified on the spot. Allows holding the trial in the duty court within 15 days.

Act that cannot be challenged through ordinary administrative channels because appeal deadlines have elapsed or the administrative route has been exhausted. Can only be challenged via ex officio review (absolute nullity) or extraordinary review appeal. It is executive and enforceable.

Monetary penalty calculated through the day-fine system: the judge fixes the number of days (based on seriousness) and the daily rate (based on the convicted person's financial situation, between €2 and €400/day). Non-payment may be converted to subsidiary personal liability.

First registration of a property in the Land Registry. Routes: acquisition deed with the transferor having possessed for two years (Art. 205 LH), notarial ownership proceedings (Art. 203 LH), or Public Administration ownership certificate. First registration creates an entry with suspended efficacy against third parties for 2 years.

Mortgage clause setting a minimum interest rate, preventing the borrower from benefiting from Euribor drops. Declared abusive due to lack of material transparency (STS 9/5/2013).

Force majeure: external, unforeseeable and irresistible event preventing fulfilment of an obligation, exonerating from liability. Fortuitous event: more internal to the debtor's activity; in strict liability areas it does not exonerate. Arts. 1105 and 1182 CC exonerate for force majeure but not always for fortuitous events.

The portion of an estate that the law reserves for certain heirs (forced heirs): descendants, ascendants and spouse. It cannot be overridden by will except for legal grounds of disinheritance.

Child protection measure entrusting care to a person or family, who assume the obligations of caring for, providing company for, feeding and educating the child. May be simple, permanent or pre-adoptive.

Contract by which the franchisor grants the franchisee the right to exploit a proprietary business system (brand, know-how, image) in exchange for an initial fee and periodic royalties. Prior registration in the Franchisors Registry is mandatory.

Property crime requiring: sufficient deception, error in the victim, act of disposition, economic harm and profit motive. Aggravated fraud (Art. 250 CP) applies when the amount exceeds €50,000, affects basic services or targets vulnerable persons. Base sentence: 6 months to 3 years.

In civil law: defect of consent whereby one party induces the other through deceptive machinations to enter into a contract they would not have entered into or would have entered on different terms. Causes voidability of the contract. In criminal law: conscious intention to commit an offence.

Crime committed by a debtor who fraudulently conceals, destroys, encumbers or transfers assets to avoid paying their creditors. Does not require insolvency to be final or the creditor to have obtained a prior judgment. The conduct protects creditors' right to universal enforcement.

Rights recognised in Arts. 15-29 CE. Enjoy enhanced protection: organic law reserve, binding on all public authorities, directly applicable, and protectable via amparo before the CC. Include the right to life, integrity, liberty, honour, privacy, image and judicial protection.

General Data Protection Regulation: European regulation (EU Reg. 2016/679) governing the processing of personal data of EU citizens. Key principles: lawfulness, fairness and transparency; purpose limitation; data minimisation; accuracy; storage limitation; integrity and confidentiality.

Violence exercised against women by current or former spouses or partners. It is an aggravated offence compared to domestic violence. The victim is entitled to a protection order, free legal assistance, economic aid and data protection.

Violence against women by who is or has been their spouse or is or has been linked to them by an analogous affective relationship, with or without cohabitation. LO 1/2004 establishes comprehensive protection measures. The Court for Violence against Women assumes civil and criminal competences. The protection order has immediate effect.

Supreme governance body of capital companies. Approves annual accounts, appoints and removes directors, agrees on dividend distribution and statutory amendments. In LLCs: minimum 15 days' notice; in PLCs: 1 month. Resolutions adopted by majority of capital, except matters requiring reinforced majority.

Transfer to a different workplace requiring change of residence. The employer must justify it on economic, technical, organisational or production grounds with 30 days' notice. The worker may accept, terminate with 20 days/year severance (max. 12 months), or challenge before the court.

Act of generosity by which a person (donor) gratuitously disposes of an asset in favor of another (donee) who accepts it. Donations of real estate must be in a public deed. Subject to reduction for being excessive if they prejudice forced shares.

Act of liberality by which a person freely disposes of a thing in favour of another. Donations of immovable property must be in a public deed. Subject to inheritance and gift tax (ISD). Revocable for supervening children, ingratitude or non-compliance with burdens.

General legal principle requiring honest and loyal conduct. In civil law, contractual good faith requires honest contract performance and prohibits abusive exercise of rights. Whoever alleges bad faith must prove it. Foundation of pacta sunt servanda and protection of the bona fide registered party (Art. 34 LH).

General principle of law requiring parties in all legal relationships to behave honestly, loyally and without causing unnecessary harm to the other. In contract law it applies in the pre-contractual, performance and post-contractual phases.

Agreement whereby the accused admits the facts and accepts the requested sentence, avoiding trial. In abbreviated proceedings it may be entered at any point before trial. Limit: if the requested sentence exceeds 6 years' imprisonment, the plea is only possible if the court freely accepts it.

Agreement between the accused and the public prosecutor whereby the accused admits guilt in exchange for a reduced sentence. In abbreviated proceedings, conformity may be entered at any point before the trial.

Urgent judicial review procedure for detention. Any person illegally detained (without legal cause, incommunicado, subjected to ill-treatment or held beyond the legal time) or someone acting on their behalf may apply. The investigating judge must resolve within 24 hours. Constitutional guarantee under Art. 17.4 CE, developed by Organic Law 6/1984.

Defects in the sold item making it unfit for its use or reducing its utility so much that the buyer would not have acquired it or would have paid less had they known. The seller is liable even if unaware, unless otherwise agreed. The buyer may choose between rescission (redhibitory action) or price reduction (quanti minoris). Time limit: 6 months.

Evidence obtained in violation of fundamental rights (inviolability of home, secrecy of communications, privacy). Inadmissible in court (Art. 11.1 LOPJ). The "fruit of the poisonous tree" doctrine extends nullity to derived evidence. It must be invoked by the defence through a nullity application or appeal.

Direct and subjective tax levied on wealth increases obtained free of charge by individuals. Devolved to regional governments, which may apply reliefs or reductions. Differences between regions are very significant.

State tax ceded to Autonomous Communities that levies gratuitous acquisitions inter vivos (gifts) and mortis causa (inheritances). Reductions and rebates vary significantly by Autonomous Community: some offer up to 99% rebate on direct inheritances. Filing deadline: 6 months (extendable) for inheritances.

State of a debtor who cannot regularly meet their due obligations. Current insolvency is the subjective requirement for insolvency proceedings; imminent insolvency allows the debtor to file early. Distinct from temporary illiquidity: assets may exceed liabilities but there is a lack of liquidity.

Independent professional appointed by the insolvency judge to manage the insolvent debtor's assets, prepare the inventory, creditors list and liquidation plan or agreement.

All assets, rights and actions of the debtor at the date of insolvency declaration, plus those acquired until the proceedings close. The insolvency administrator manages and realises the active estate to pay creditors.

Universal judicial proceeding to resolve a debtor's insolvency, balancing the interests of all creditors. May end in a payment agreement or asset liquidation.

Set of rights protecting human creative works: copyright (literary, artistic, musical works, software), related rights and industrial property rights (patents, trademarks, designs). Copyright arises automatically upon creation, without registration.

Court orders adopted before or during proceedings to ensure the effectiveness of the future judgment. Require appearance of right (fumus boni iuris) and danger of delay (periculum in mora).

Succession that occurs when the deceased left no will or it was ineffective. The law establishes the order of succession: descendants, ascendants, spouse, collateral relatives up to the 4th degree, and finally the State.

Advance IRPF payment that the payer of certain income (wages, professional fees, rents, dividends) is obliged to withhold and pay to the AEAT. On rental contracts, the withholding rate is 19% (Art. 101 LIRPF).

Plurality of claimants or defendants in the same proceedings. Necessary (compulsory joinder): required by law or the nature of the legal relationship when judgment cannot be given without all interested parties. Voluntary: arises from subjective joinder of claims, possible whenever they are connected.

Custody arrangement where both parents exercise custody alternately. Favored by Supreme Court case law when both parents are fit and geographic proximity allows it. Does not automatically exempt from child support.

Arrangement whereby minor children live with both parents in alternating periods (weeks, fortnights, school years). The TC has held joint custody to be the preferential regime if it benefits the child's best interest. Does not require parental agreement if the judge deems it most suitable.

Custody arrangement in which both parents share the daily care of the minor in alternating periods. May be agreed by the parents or imposed by the judge in the best interest of the child. Does not imply each parent pays maintenance, but that both bear ordinary expenses.

Legal situation in which ownership of an asset or right belongs pro indiviso to several parties (co-owners). Any co-owner may request division at any time (actio communi dividundo). Unanimous consent required for acts of disposal.

Instrument through which a judicial body requests another to carry out proceedings outside its territory. National letters rogatory are governed by the LEC. International ones follow bilateral conventions and Regulation (EU) 1206/2001. Allows taking evidence in other jurisdictions.

Procedural act for forced realisation of seized or mortgaged assets to pay the enforcing creditor. Since 2015 held exclusively online on the BOE Auction Portal. For properties, opening price is 75% of assessed value. If there are no bidders, the creditor may acquire the asset at 50-70% of its value.

Mechanism by which the defendant challenges the jurisdiction, objective, functional or territorial competence of the court hearing the case. Must be filed within the first 10 days of the deadline to reply to the claim. Suspends the reply deadline while being processed.

Administrative conciliation, mediation and arbitration service for labour disputes. Prior conciliation before SMAC (regional) or SIMA (inter-confederal) is a mandatory procedural requirement before filing a labour claim for contract termination, with exceptions (collective dismissals, fundamental rights). A conciliation agreement has the force of res judicata.

Public institution ensuring legal certainty in property transactions. Registration creates a presumption of accuracy (Art. 38 LH). The public faith principle (Art. 34 LH) protects a bona fide purchaser for value who relies on the Registry. The successive title principle requires the transferor to be the registered owner.

Voluntary suspension of the employment contract. Voluntary leave requires 1 year of seniority and lasts 4 months to 5 years, without job reservation (only re-entry preference). Childcare leave does reserve the position for the first year.

Testamentary disposition by which the testator attributes to a person (legatee) a specific asset or right from the estate, without needing to accept the estate as a whole or bear hereditary debts (except those specifically burdened). Differs from heir institution in that the heir receives a share of the net assets.

The legal interest rate is set by the Budget Act (3.25% in 2024). Default interest in court proceedings is 2 points above the legal rate (Art. 576 LEC). For commercial debts between businesses, Law 3/2004 applies: ECB rate + 8 points. For tax debts: the tax default rate (4.0625% in 2024).

Expenses arising from judicial proceedings including lawyer fees, court agent fees, expert fees and others. Imposed on the totally losing party, unless the case presents serious doubts of fact or law.

Process of reviewing and investigating all legal aspects of a company or asset before a corporate transaction (M&A, investment, financing). Covers: contractual review, IP, litigation, regulatory compliance, labour and tax. The due diligence report forms the basis of representations and warranties in the sale agreement and indemnification clauses.

Legal situation suspending marital cohabitation and dissolving the matrimonial property regime without dissolving the bond. Currently little used as direct divorce is available; retains interest in religious cases or for widow's pension purposes.

Secure Ministry of Justice system for electronic exchange of briefs, documents and procedural notifications between courts, lawyers, court agents and prosecutors. Mandatory since 2016 for professionals across all jurisdictions.

Extinction of a right or action by the mere passage of the legal or contractual period, with no possibility of interruption. Operates automatically, may be assessed ex officio and cannot be waived in advance. Example: action for marriage annulment (does not prescribe but may lapse in some cases).

Commercial corporate form where capital is divided into shares and partners' liability is limited to contributed capital. Most common form in Spain for SMEs.

Procedural situation arising when proceedings are pending on the same subject between the same parties. Lis pendens may be raised as a defence to prevent the same dispute from being heard simultaneously by two courts. In civil proceedings, the later court must stay or dismiss the case (Art. 421 LEC).

Judicial declaration that a marriage was never valid due to a defect present at the time of celebration (lack of consent, bigamy, prohibited kinship).

Agreement executed in a public deed by which spouses or prospective spouses establish, modify or replace their matrimonial property regime. Registrable in the Civil Registry and, where applicable, the Property Registry.

Alternative dispute resolution method where a neutral third party (mediator) facilitates communication between parties to reach an agreement. It is voluntary, confidential and cheaper than litigation.

Merger is the integration of two or more companies into one by absorption or formation of a new company. Demerger divides a company's assets, transferring them to existing or newly formed entities. Both require a merger/demerger plan, directors' reports and shareholder approval.

Minimum remuneration set annually by the Government for any activity in Spain, regardless of contract type and sector. In 2025-2026: €1,184/month (14 payments, PGE 2025 extended). Cannot be offset or absorbed. Collective agreements may exceed it, never reduce it.

Crime committed by someone who receives another's property (money, instruments or any movable asset) by virtue of a deposit, commission, administration or other title requiring return or delivery, and diverts it or denies having received it. The STS Plenary 2/2017 clarified the distinction between outright misappropriation and diversion.

Circumstance that reduces the severity of the crime and allows imposing the sentence in its lower half. Includes: confession, damage repair, undue delays, drug addiction, kinship and analogous mitigating.

Crime of concealing or disguising the illicit origin of assets from criminal activities. Lawyers are obliged entities under Law 10/2010 and must apply customer due diligence and report suspicious transactions to SEPBLAC. Corporate criminal liability applies to corporate money laundering.

Real security right burdening real property to guarantee an obligation without transfer of possession. If the debtor defaults, the creditor may foreclose and obtain judicial sale of the property.

Real security right over property that remains in the debtor's possession but secures the debt. Created by public deed and registration in the Property Registry. Upon default, the creditor may enforce the security.

Real right of guarantee burdening a property as security for the fulfillment of an obligation. Must be in a public deed and registered in the Property Registry. The creditor has the right to foreclose if the debtor defaults.

Judicial or notarial procedure by which the mortgage creditor claims payment of the secured debt through forced sale of the mortgaged property. The mortgage is accessory to the secured obligation. Requires a public deed and registration for valid creation.

Special procedure to enforce a mortgage upon debtor default. Allows the creditor to request auction of the mortgaged property. The debtor may object on specific grounds (payment, non-maturity, abusive clauses). Act 1/2013 introduced protections against evictions.

Replacement of the original mortgage creditor by another financial institution offering better terms to the debtor. Governed by Law 2/1994, allows changing banks without canceling the mortgage and without paying stamp duty.

Local tax on the increase in value of urban land arising on transfers. Following STC 182/2021, it cannot be levied if there is no actual value increase. Tax base: cadastral value × years coefficient.

Minimum legal remuneration that every employee is entitled to receive, set annually by the Government by Royal Decree. Fully exempt from seizure (Art. 607.3 LEC). For 2025-2026: €1,184/month in 14 payments (RD 1051/2024, extended to 2026). Cannot be reduced by collective agreement.

Failure to exercise the required degree of care that causes harm to another. In civil law, negligence can give rise to contractual (Art. 1104 CC) or non-contractual liability (Art. 1902 CC). In criminal law, the negligent offence is committed without intent but by breaching the duty of care.

Sequential personal identification number assigned by the National Police to foreigners who have economic, professional or social links with Spain. Essential for signing contracts, opening bank accounts, buying property, paying taxes in Spain or working. The NIE appears on the TIE (Foreigner Identity Card). EU citizens obtain it via the Registration Certificate.

EU Directive 2022/2555 (NIS2) extends cybersecurity obligations to more sectors (healthcare, public administration, postal, manufacturing). Requires risk management measures, incident notification within 24 hours to the competent authority and 72 hours to the affected party, and liability of management bodies. Transposed in Spain by a law pending approval (2025).

General legal principle that no one may rely on their own unlawful acts to obtain a benefit or evade an obligation. Prevents, for example, a party who caused the nullity of a contract from invoking that nullity in their favour. Related to the doctrine of estoppel by conduct (venire contra factum proprium non valet).

Obligation to repair damage caused to another by culpable or negligent action or omission, without a prior contractual relationship. Requires action, damage, causal nexus and fault or negligence.

Procedural sanction depriving court acts of effect when carried out in breach of essential procedural rules causing a lack of defense. May be declared ex officio or at a party's request. More serious than mere voidability.

Extraordinary procedural remedy to challenge the violation of a fundamental right suffered in proceedings when no ordinary appeal remains and before filing a constitutional appeal (amparo) before the Constitutional Court. Must be filed within 20 days of notification of the resolution. The TC doctrine requires exhausting it before admitting amparo.

Optional appeal filed before the same body that issued the act, prior to going to the administrative courts. Not mandatory. Deadline: 1 month from notification of the express act. Does not suspend the deadline for appeal to the administrative courts.

Civil declaratory process for matters exceeding €15,000 or matters determined by law regardless of amount. Consists of claim → defense → preliminary hearing (statement of facts and evidence) → oral hearing → judgment. It is the most rights-protective process in the civil system.

Pre-insolvency procedure allowing natural persons and SMEs to negotiate a restructuring agreement with creditors before filing for insolvency. Administered by an insolvency mediator. If it fails, it automatically opens consecutive insolvency proceedings. Since Law 16/2022 it is subsidiary to restructuring plans.

Working hours exceeding the agreed maximum ordinary working day. Limit: 80 hours/year (those compensated with rest are not counted). Price or compensation set by collective agreement. Voluntary except by agreement or force majeure. Prohibited for workers under 18 and night workers.

Special legal regime governing horizontally divided buildings. Owners hold title to their unit and co-own common elements. The Owners' Meeting passes resolutions by majority according to participation quotas.

Legal bond linking a person to their parents. May be by nature (marital or non-marital) or adoption. Determined as to the mother by birth and as to the father by recognition, proceedings or judgment.

Set of rights and duties of parents over their non-emancipated minor children. Includes custody, maintenance, education and legal representation. Exercised jointly by both parents.

Industrial property title granting the exclusive right to exploit an invention for 20 years from filing (non-renewable). Requirements: novelty, inventive step and industrial application. In Spain granted by OEPM; European level by EPO. Protects both the product and the inventive process.

Action allowing a creditor to challenge a debtor's acts carried out in fraud of their rights when no other means of recovering the debt exists (Art. 1111 CC). Requirements: act of asset disposal, harm to creditor (eventus damni), debtor's fraud or bad faith and, if the third-party acquirer is onerous, their complicity. Limitation period: 4 years.

Simplified judicial procedure for claiming monetary debts that are liquid, determined, due and enforceable. No lawyer or court agent required for amounts under €2,000.

Contractual stipulation fixing in advance the compensation payable for breach. Replaces ordinary damages unless otherwise agreed. Courts may reduce the penalty when it is manifestly disproportionate to the harm suffered (Art. 1154 CC).

Situation of a worker who, after appropriate treatment, presents serious and foreseeably permanent anatomical or functional reductions. Grades: partial (reduces capacity by 33%), total (prevents usual occupation), absolute (prevents any occupation) and severe disability.

Personal and progressive tax on income earned by individuals resident in Spain. Split into general income (employment, economic activities, property) and savings income (dividends, capital gains, interest). Savings rates: 19% (up to €6,000), 21% (€6,001–50,000), 23% (€50,001–200,000), 27% (>€200,000). Annual return filed between April and June.

Mandatory administrative authorization for construction, renovation or demolition works, and for classified activities. The building permit certifies the project's conformity with the urban plan. Its absence may lead to demolition orders and sanctions. Prior notification replaces the permit for minor works.

Creation of a pledge right over movable assets (company shares, securities, credit rights) as security for an obligation. The asset remains in the creditor's possession or deposited with an authorized entity.

Real right of security over movable property requiring delivery of the asset to the creditor or a third party. The debtor may not use the pledged asset. Non-possessory pledge allows the debtor to retain possession of the asset.

Agreement by which the worker undertakes not to work for competitors or set up independently in similar activities after contract termination. Requirements: genuine business interest, adequate financial compensation and maximum duration of 2 years (technical staff) or 6 months (others).

Public document granted before a notary by which one person (grantor) authorizes another (agent) to act on their behalf for specific or general legal acts.

Personal precautionary measure depriving liberty, adopted by the investigating judge during criminal investigation. Only available when there is evidence of a crime, flight risk, evidence concealment, risk of reoffending or public alarm. Standard maximum period: 2 years (4 years for offences with a sentence exceeding 3 years). Impinges on the presumption of innocence and proportionality.

Personal precautionary measure depriving liberty during investigation when there is risk of flight, recidivism or obstruction. Requires imputation for a crime punishable by more than 2 years. Standard maximum: 2 years (extendable to 4).

Occupation of a property by tolerance or pure generosity of the owner, without title, without paying rent and without a fixed term. The owner may recover possession at any time through verbal eviction proceedings.

Creditor whose claim has priority of payment from the insolvency estate. The TRLC distinguishes: creditors with special privilege (real security over a specific asset), general privilege (wages, taxes, public credit), ordinary (no privilege) and subordinated (shareholders, related-party loans, interest, fines).

Issue whose resolution determines the outcome of the main dispute and must be decided first. Criminal prejudiciality (Art. 40 LEC) suspends civil proceedings if criminal facts determine the civil controversy. A preliminary ruling before the CJEU (Art. 267 TFEU) may be raised by any court when the interpretation of EU law is decisive.

Formal contract between spouses or future spouses to establish, modify or replace the matrimonial property regime. Must be in a public deed and registered in the Civil Registry. May be agreed before or during marriage. The most common alternative to community property is separation of assets.

Participation of the victim or injured party in criminal proceedings as a prosecuting party, exercising criminal and derivative civil action. In Spain, private prosecution may be exercised independently of the Public Prosecutor. Distinct from public prosecution (any citizen) and accumulated civil action.

Initial phase of the employment contract during which either party can terminate freely and without severance, unless otherwise agreed. Maximum duration set by collective agreement or ET: 6 months for qualified technicians, 2 months for others (1 month in companies with fewer than 25 workers).

Strict liability of the manufacturer for damage caused by safety defects in their products. No fault required; it suffices to prove the defect, the damage and the causal link. Royal Legislative Decree 1/2007 (TRLGDCU) transposes Directive 85/374/EEC. New Directive 2024/2853 extends liability to digital products and AI.

Negotiable instrument by which the signatory unconditionally undertakes to pay a specified sum on the maturity date. Common document in commercial credit transactions; subject to the same exchange legislation as the bill.

Informative document issued by the Property Registry containing the property description, ownership, charges and encumbrances. It does not have public document status.

Tax ceded to Autonomous Communities levying onerous inter vivos transfers of assets and rights, corporate operations and documented legal acts (AJD). Second-hand property purchases are taxed under TPO (regional rate, 6-10%). Mortgages are taxed under AJD. Incompatible with VAT in the same transaction.

Property Transfer Tax and Stamp Duty. TPT taxes onerous transfers between private parties (second-hand home purchase, 4-10% depending on autonomous community). Stamp duty taxes notarial, commercial and administrative documents: variable rate (0.4-2.5% depending on autonomous community) and fixed rate (€0.30/page). On new builds, VAT + stamp duty is paid (not TPT).

Judicial decision granting the victim of gender-based or domestic violence an integral protection status. Includes precautionary criminal measures (restraining and no-contact orders, distancing), civil measures (home use allocation, custody) and referral to social resources. It takes immediate effect.

Enforcement of first-instance judgments under appeal, without waiting for the judgment to become final. Issued at the enforcing party's request; the enforced party may oppose if enforcement could produce a situation that is difficult to reverse. If the judgment is overturned, the effects of provisional enforcement are undone.

Non-refundable monetary provision by the Administration to public or private persons without direct consideration. Subject to the principles of publicity, transparency, competition, objectivity, equality and non-discrimination. Mandatory reimbursement for non-compliance.

Commercial corporate form with capital divided into freely transferable shares. Minimum capital: EUR 60,000, at least 25% paid up. Mandatory for listed companies, banks and insurers.

Contract concluded by a Public Administration with a private party to meet a public need. Main types: works, supply, service, works concession and service concession contracts. Subject to the LCSP with principles of publicity, competition and non-discrimination.

Contract entered into by a public sector entity subject to the LCSP. The most relevant contracts are: works, works concession, supplies, services and services concession. Award is through open, restricted or negotiated procedure. Principles: equality, non-discrimination, transparency and efficiency.

Deduction from corporate tax liability for R&D expenditure (25-42%) and technological innovation (12%). One of the most generous in the EU. Application: deducted from gross tax liability; may generate a tax credit carried forward for 18 years. The binding motivated report from MINCOTUR secures R&D&I classification before the Tax Authority.

AI technique combining search over specialized databases with text generation. Lexiel uses RAG over 27,200+ legal sources to ensure every response cites verified real legislation.

Distinctive sign identifying products or services in the market. Registered with OEPM (Spain) or EUIPO (EU). Protection for 10 renewable years. Grants exclusive use rights and infringement prosecution.

Real action protecting ownership rights, allowing the owner to recover possession of the asset from whoever possesses it without title. Requires proving ownership, identifying the asset and that the defendant possesses it. Does not prescribe while ownership exists.

Effect preventing a dispute already resolved by a final judgment from being tried again. Formal res judicata: prevents appeals within the same proceedings. Material: prevents new proceedings on the same subject (identity of parties, claim and cause of action). May be raised as a procedural defence.

Permit authorising a non-EU national to reside and work in Spain. Initial authorization lasts one year, renewable for two. Requires a job offer, employer registration with Social Security and compliance with the national employment situation (except special regimes: social, labor or family rootedness, Startups Law, digital nomad visa). Procedure starts at the Government Delegation or Sub-Delegation.

Contract by which the landlord grants the use of a dwelling to the tenant in exchange for periodic rent. Minimum duration: 5 years (natural person) or 7 years (legal entity). 3-year tacit extension. Rent may only be updated according to CPI or reference index.

Contractual clause giving one party the right to rescind the contract if the other breaches the agreed obligation, recovering the property or performance delivered. In property sales, it is registered to have effect against third parties. Distinct from a suspensive condition, which defers the right's creation.

Everyone's right to access information held by Public Administrations. The LTAIBG (Law 19/2013) recognises it with limits: national security, personal data, trade secrets, intellectual property. Requests may be submitted without justification. The CTBG (Transparency Council) resolves complaints.

Right of first refusal gives priority to acquire an asset at the same price as a third party before the sale closes. Pre-emption operates ex post: allows stepping into the buyer's position after the sale (within 9 days of registration). Legal (LAU, bordering rural neighbours) and contractual types exist.

Fundamental right (Art. 24 CE) guaranteeing access to courts, a fair trial with all guarantees, use of relevant evidence, prohibition of defencelessness, and the right to a reasoned and enforceable decision. It is the cornerstone of the rule of law.

Fundamental right of workers to defend their interests. Requires 5-day notice (10 in essential services). Strikers do not receive wages and do not accrue social security. The strike committee must guarantee minimum services set by the labour authority. Employer lock-out is only lawful when there is a danger to persons or serious harm to the company.

Temporary residence authorization for exceptional circumstances for undocumented foreigners. Three types: social (3 years), labor (2 years) and family.

Lease contract for agricultural, forestry or livestock farms. The Rural Leases Act sets minimum terms of 5 years (renewable), preferential acquisition rights for the tenant, and rent limits.

Contract by which the seller undertakes to deliver a specific thing and the buyer to pay an agreed price in money or its equivalent. Consensual (perfected by consent), bilateral (binding on both parties) and onerous. The sale agreement alone does not transfer ownership: delivery (traditio) is required under the title and mode theory.

Security measure affecting specific assets of the debtor to guarantee fulfillment of an obligation. May target bank accounts, property, vehicles or wages (with minimum wage limits).

Natural person who habitually, personally, directly and on their own account outside any organizational framework carries out an economic activity. Required to register with RETA and pay monthly contributions. Since 2023, the contribution is calculated on actual net income (banded system).

Matrimonial property regime in which each spouse is sole owner of their present and future assets and manages their own estate without interference from the other. Must be agreed in a prenuptial/nuptial agreement.

Agreement between spouses governing the effects of divorce or separation: use of the family home, custody arrangements, contact, child support and alimony, and liquidation of the matrimonial regime. Approved by court or before a notary/court registrar.

Document by which employer and employee settle outstanding economic obligations upon termination: outstanding wages, unused holidays, proportional bonus payments, and where applicable, severance pay.

Shareholder's right to leave the company and receive the fair value of their stake when the general meeting adopts certain resolutions (substantial change of corporate purpose, extension, transfer of registered office abroad, etc.).

Private agreement among shareholders of a company covering aspects not included or more detailed than the articles of association: governance, voting rights, dividend policy, drag-along/tag-along clauses, liquidation preference, anti-dilution, vesting, enhanced information rights and non-compete. Not registrable with the Commercial Registry but contractually binding on the parties.

Organic Law 3/2018 on Personal Data Protection and Guarantee of Digital Rights. Adapts the GDPR to the Spanish legal order and adds specific digital rights: right to erasure, portability, digital disconnection, digital will, and protection against digital harassment.

Organic Law 3/2018 on Personal Data Protection and Guarantee of Digital Rights. Adapts the GDPR to the Spanish legal order and adds digital rights: digital disconnection at work, digital oblivion, portability, algorithmic protection and protection of minors on the Internet. The AEPD is the supervisory authority.

Financial benefit one spouse may claim from the other after separation or divorce when an economic imbalance results from the marriage. May be temporary, indefinite or a lump sum. Extinguished by new marriage or cohabitation.

Innovative newly created company meeting the requirements of the Startup Law: not more than 5 years old (7 in biotech), unlisted, no dividends distributed, revenue <€10M. Benefits: reduced corporate tax rate of 15% for the first 4 profitable years, improved tax treatment for stock options (up to €50,000 exempt/year), digital nomad visa modules.

Obligation of Public Administrations to compensate individuals for damage to their assets or rights caused by the normal or abnormal operation of public services. Requires: unlawful harm, causal link with administrative action, economically quantifiable damage and not time-barred (1 year).

Extinction of a right or legal action due to the legally established time period expiring without exercise. In criminal law, it extinguishes criminal liability.

Independent review of a company's annual accounts to verify they present a true and fair view. Mandatory when 2 of 3 thresholds are exceeded for 2 consecutive financial years: assets >€4M, turnover >€8M, employees >50.

Minimum remuneration every worker is entitled to receive, set annually by the Government by Royal Decree. In 2025-2026: €1,184/month (in 14 payments) = €16,576/year (RD 1051/2024, extended to 2026). Reference for salary garnishment calculations.

Unilateral alteration by the employer of essential working conditions: hours, schedule, remuneration or functions. Must be justified on ETOP grounds with 15 days notice. The worker may accept, rescind with 20 days/year severance (max. 9 months), or challenge in court.

Special proceedings for collecting bills of exchange, cheques and promissory notes. Allows immediate provisional enforcement against the debtor's assets. The debtor may oppose through limited defences (forgery, lack of representation, loss, time-bar, payment). Most effective proceedings for negotiable instruments.

Civil declaratory process for matters not exceeding €15,000 or certain matters (eviction, possessory action, challenge of corporate resolutions). Characterized by orality and speed. The claim is answered orally at the hearing. Written counterclaim is not permitted.

Contract by which the guarantor agrees to pay a third party's debt if they fail to do so. The guarantor has the benefit of excussion (collect from the principal debtor first) and benefit of division (share the debt with other guarantors). Surety may be joint, eliminating these benefits.

Benefit allowing suspension of imprisonment not exceeding 2 years (exceptionally 5), conditioned on not reoffending during the fixed period (2-5 years).

Mechanism allowing the custodial sentence not to be physically executed if requirements are met: sentence ≤2 years, not a repeat offender, civil liabilities satisfied. Suspension period: 2 to 5 years. Conditions may be imposed during suspension. If a new intentional offence is committed, suspension is revoked.

Quantity resulting from measuring the taxable event, to which the tax rate is applied to determine the tax liability. Example: in personal income tax, it is the sum of net income minus reductions.

Right to request from the AEAT deferred payment of tax debts when the financial situation temporarily prevents payment. Withholdings and advance payments, and collected VAT, cannot be deferred (with exceptions). Late payment interest accrues. Deferral may be secured by bank guarantee, mortgage or surety bond.

AEAT authorisation to defer payment of tax debts when the taxpayer cannot pay without serious risk to their activity. Late payment interest accrues. Debts in the enforcement period or from withholdings are generally not deferrable.

Reduction in the tax liability or taxable base that decreases the taxpayer's tax burden. Examples: primary residence (acquired before 2013), donations, R&D investment or maternity deductions.

Crime committed by those who defraud the central, regional, foral or local Tax Authority by more than €120,000. Penalties: imprisonment of 1 to 5 years and fine from 1× to 6× the defrauded amount. Voluntary regularisation before complaint or start of inspection exempts from criminal liability.

Breach of tax obligations classified in the LGT. Infringements are classified as minor (50% fine), serious (50-100%) and very serious (100-150%). Intentionality and recidivism increase the sanction.

AEAT procedure to verify compliance with tax obligations. The taxpayer has the right to legal counsel, copies of proceedings and a maximum 18-month timeframe.

Institution by which a person other than the principal obligor is liable for the tax debt. Joint and several liability (art. 42 LGT) can be enforced directly without exhausting the debtor's assets. Secondary liability (art. 43 LGT) requires the prior declaration of insolvency of the principal debtor. Includes company directors.

Extinction of the Administration's right to assess, collect or sanction tax debts after 4 years without exercise. Interrupted by inspection actions, appeals or taxpayer declarations.

Consequence of non-compliance with tax obligations. Minor infringement (concealment <10%) is sanctioned with a fine of 50% of the quota; serious (10-25%) with 50-100%; very serious (more than 25% or fraud) with 100-150%. May be reduced by 30% for payment in the voluntary period and an additional 40% for not filing an appeal.

Legal assumption whose occurrence gives rise to the tax obligation. Example: in VAT, delivery of goods or provision of services; in property transfer tax, transfer of real estate.

Temporary inability to work due to common illness, non-work accident, occupational disease or work accident. Economic benefit is paid by the employer for the first 15 days (common illness) and by Social Security from day 16. Maximum: 365 days, extendable by 180.

Temporary suspension of contracts or reduction of working hours on ETOP or force majeure grounds. Workers access unemployment benefit even without meeting the minimum contribution period. SEPE pays directly; the company may receive exemption from contributions. Distinct from ERE (permanent termination).

Contract by which the landlord grants use of a property to the tenant in exchange for periodic rent. The LAU regulates residential tenancies (5 years extendable for individuals, 7 for legal entities) and non-residential tenancies. The legal deposit is 1 month for residential and 2 months for non-residential use.

Confidential business information of commercial value that its holder protects through reasonable confidentiality measures: formulas, processes, client lists, business strategies. Law 1/2019 transposes EU Directive 2016/943. Unlawful acquisition, disclosure or unauthorized use are unlawful acts.

System for assessing bodily harm in traffic accidents established by Law 35/2015. Sets fixed tables for: basic and specific personal injury (for sequelae and temporary injuries), financial damage (lost earnings and expenses) and consequential loss. Its application is mandatory in all claims against compulsory motor insurance. Tables are updated annually by DGSFP resolution following the CPI.

Transfer of an undertaking, workplace or autonomous productive unit entailing the new employer's succession in the predecessor's employment and Social Security rights and obligations. The worker cannot object. Also applies in outsourcing when the collective agreement provides for it.

Prices agreed in transactions between related parties (companies in the same group). Must comply with the arm's length principle: the same price as between independent parties. The AEAT may adjust the value when the agreed price differs from the market price.

Regional tax comprising three modalities: onerous asset transfers (second-hand purchases, ~6-10%), company transactions (incorporation, ~1%) and documented legal acts (mortgages, notarial deeds, ~0.5-1.5%).

Contributory benefit from SEPE for workers in legal unemployment with minimum contribution of 360 days in the last 6 years. Duration: 4 to 24 months depending on contributions. Amount: 70% of the regulatory base for the first 6 months; 50% thereafter. Regulatory base: average of the last 180 days of contribution bases.

Welfare benefit from SEPE for unemployed persons who have exhausted contributory benefit or who are not entitled to it. Amount: 80% of the IPREM (€600.00/month in 2025-2026). For those over 52, there is a special subsidy with pension contributions.

Business conduct contrary to commercial good faith that distorts the market: confusion, deception, denigration, exploitation of third-party reputation, disloyal imitation, trade secret violation and unlawful comparative advertising. The LCD allows declaratory, cessation, redress and damages actions.

Dismissal declared by court without sufficient legal cause or failing to comply with formal requirements. The employer must choose between reinstating the worker with back pay or paying compensation: 33 days/year worked up to a maximum of 24 monthly salaries (contracts from 12/02/2012).

Crime whereby a company director or other administrator breaches the duties of their position causing economic harm. Distinguished from classic corporate crime in that it does not require personal enrichment. Particularly relevant in shareholder disputes and insolvency proceedings.

General legal principle obliging anyone who is enriched at another's expense without legal cause to restore the benefit obtained. No fault required. Its elements: enrichment of the defendant, correlative impoverishment of the claimant, causal link and absence of legal cause. Source of obligations alongside contract and tort, subsidiary in nature.

Material action by the Administration lacking the necessary basis in a prior administrative act or that manifestly departs from the legally established procedure. The most serious case of administrative irregularity. Individuals may go directly to the administrative courts without exhausting the administrative route.

Evidence obtained in violation of fundamental rights (home inviolability, secrecy of communications, physical integrity). Null and void and cannot have direct or indirect effects (fruit of the poisonous tree, Art. 11.1 LOPJ). Its admission violates the right to a fair trial.

Rental contract for residential and business premises. The LAU 2013 (amended by Law 12/2023) sets: mandatory extension up to 5 years (7 if landlord is a legal entity), rent update by IRAV (own index, not CPI), mandatory deposit of one monthly payment.

Real right allowing use and enjoyment of another's property with the obligation to preserve its form and substance. Common in inheritances: the surviving spouse receives the usufruct of the improvement third.

Indirect tax on the consumption of goods and services at each stage of the value chain. Rates: standard 21%, reduced 10%, super-reduced 4%. Businesses act as collectors: they charge VAT to customers and deduct input tax on purchases. The difference is settled quarterly (form 303) or monthly (REDEME). Some services are exempt: healthcare, education, financial services.

Mandatory electronic invoicing system from AEAT requiring invoicing software to guarantee integrity, preservation, traceability and unalterability of billing records.

Right of the non-custodial parent to maintain regular contact with minor children after separation or divorce. Includes alternate weekends, holidays and festive periods. Set by the judge attending to the best interest of the child.

Dismissal that violates fundamental rights or civil liberties, or occurs in protected circumstances (pregnancy, maternity/paternity, reduced working hours for care, discrimination). Consequence: mandatory reinstatement with back pay, with no option of compensation.

Ineffectiveness of a legal transaction that may be challenged by those who suffered the defect (incapacity, fraud, error, violence or intimidation) but produces all its effects until challenged. The voidability action expires in 4 years. Distinct from absolute nullity (void ab initio).

Filing or correction of tax returns before an audit procedure begins. Excludes penalties (only late payment interest is charged). If regularisation occurs after the audit starts, late filing surcharges do not apply but reduced penalties do.

Wage Guarantee Fund: public body that partially guarantees outstanding wages and severance when the company is insolvent or enters insolvency proceedings.

Unilateral, personal, revocable and formal legal act by which a person disposes of their assets for after death. The most common forms are the open notarial will and the holographic will (handwritten and signed by the testator).

Advance payments on account of IRPF or corporate tax that the payer must withhold and pay to the Tax Authority before remitting income to the recipient. Withholding on wages: variable per withholding table. On rents: 19%. On professional fees: 15% (7% in the first 2 years of activity). On dividends and interest: 19%. The Tax Agency imposes penalties for failure to withhold.

Any bodily injury suffered by the worker on the occasion of or as a result of work carried out on behalf of another. Includes "in itinere" accidents (on the way to work). Generates a benefit surcharge of 30-50% if safety measures were violated. The replacement benefit is higher than for common illness sick leave.

Contract for people under 30 combining paid work with vocational or university training. Duration: 3 months to 2 years. Minimum remuneration: 60% of the minimum wage in the first year and 75% in the second. The company receives Social Security contribution bonuses.

Hostile, intimidating or humiliating conduct systematically directed at a worker, undermining their dignity. The worker may terminate the contract with compensation equivalent to unfair dismissal (Art. 50.1.c ET). May also give rise to criminal liability if threats are involved (Art. 173 CP).

Collective employee representation body in companies or workplaces with 50 or more workers. Has rights to information (annual accounts, employment situation), consultation (collective redundancies, restructurings) and collective bargaining. Composition from 5 to 75 members depending on workforce size.