More than 27 years of experience

There is still hope if you were affected by failed housing promotion in Spain. A law from 1968 holds banks responsible for the amounts that were paid in advance for unfinished properties.

There is still hope if you were affected by failed housing promotion in Spain. A law from 1968 holds banks responsible for the amounts that were paid in advance for unfinished properties: The Law 57/68 on the reception of payments in advance in building and selling apartments. The law is crystal clear in that building developers have the obligation to be co-signed by banks, and that banks are to be held responsible for the amounts paid in advance. This law was created to prevent the fiasco of the building developer Nueva Esperanza to happen again, a fiasco that left more than 10.000 Spanish people without houses… and without the payments in advance that they made for them.

Banks state that many developers did not follow guarantee procedures in order to save costs, which, after their liquidation, would hypothetically leave buyers without any chance of claiming these amounts. However, the Supreme Court judgment of 21 December 2015 is clear in this aspect.

“When buying or selling properties under the 57/1068 Law, credit entities that admit to having received payments from the buyers in the developer’s bank account without demanding that a special account with the respective guarantee is opened, will have to take responsibility regarding buyers for the whole of the amounts paid in advance to the developer’s account or accounts opened within said entity”

According to the BBC, in the United Kingdom there are nearly 100.000 people affected by the Spanish real estate fiasco, and there have already been plenty of positive judgements.

If you paid in advance to a developer that did not keep its promise and you do not know how to get the money back, today is your lucky day. Thanks to this Law and to our Firm you can finally recover what is rightfully yours.

Related entries
Beautiful property in Spain higlighting the need to comply with tourist property rental laws
14 February 2025

Tourist Property Rental Laws in Spain: Everything You Need to Know About Letting Your Property

Essential Things You Need to Know if you are renting a property in Murcia or Valencia New Laws: Spain has introduced stricter rules for tourist rentals in Murcia and Valencia, including a new national registry. Compliance is Key: Hefty fines (up to €600,000) and rental bans apply for non-compliance. Licensing: You need a tourist licence […]

property-tax-increase-spain
14 January 2025

Spain’s Proposed Property Tax Increase: What British Buyers Need to Know

Understanding the Implications of Spain’s Proposed Property Tax Hike for British Buyers “This proposed tax increase represents a challenge for British buyers, but with careful legal guidance and planning, it is still possible to invest securely in Spain.” — Mr Isaac Abad Garrido, Winner of the Best Lawyer Award 2025 for Tax & Conveyancing Law […]

Best Lawyers 2025 Award for ABAD Abogados in Murcia
7 January 2025

Press Release: ABAD & ASOCIADOS Honoured in the 2025 Edition of The Best Lawyers in Spain™

ABAD & ASOCIADOS is proud to announce that its Managing Partner, Mr. Isaac Abad Garrido, and Senior Associate Lawyer, Mr. Fº Javier Cabañas de Pablo, have been recognised in the 2025 edition of The Best Lawyers in Spain™ for their exceptional work in Tax Law and Construction Law, respectively.
The 183 Day Tax Rule Blog Post Header Image of a calendar and a pin with the word tax on it
12 December 2024

The 183-Day Rule in Spain

The 183-Day Rule Explained: Lessons from Shakira’s Tax Case and Expert Insights from ABAD Abogados Shakira’s recent tax settlement with Spanish prosecutors has reignited interest in the 183-day rule, a cornerstone of Spanish tax law. While the pop star avoided jail time by settling her case on November 20, 2023, she paid a steep price—€7.3 […]