MARKET OVERVIEW

The recent problems with the American subprime mortgage debt is still having an unsettling effect on the world investment markets and it will take some time for the full effects to be clear.

Additionally, the high price of oil is effecting the cost of living indexes worldwide.

The emerging countries such as China and India are using increasing amounts of all commodities. China now accounts for over 26% of the world steel use and is forming partnerships with major oil producing countries. There are problems with the production of rice, particularly in Burma.

Commodities are now a valuable investment and we can recommend a fund that has produced a growth of over 7% in the period January to June 2008.


C V CARPENTER RESEARCH TO GIVE YOU PEACE OF MIND

SEE THE BOTTOM OF THE PAGE FOR THE LATEST ON THE NEW RESIDENCE PERMIT (CRC). INTRODUCED JULY 2007

Two recent new decrees passed in Spain have resulted in what our company lawyer calls 'Peace of Mind'. As we live longer and enjoy life in Spain, there are two possible problems that could occur.

First, if I become unable to manage my assets, how can I ensure they are managed to my benefit for the rest of my life and be sure they ultimately go to those I wish to receive them?

Secondly, if I become unable to make decisions because I am suffering from a terminal medical problem, how can I clearly specify the precise course of action I would wish my beneficiaries to take?

In the United Kingdom this could be covered by what is called an 'Enduring Power of Attorney' (EPOA). If the donor becomes mentally incapable, a normal power of attorney becomes invalid, however, an EPOA then becomes effective and will continue until the owner dies. Recent legislation in Spain, 'Ley 41/2003 Patrimonial Protection of the Incapable Person' enables a suitable document to be drawn up, signed by the local Notary.

In a recent case, an aged married couple, one of whom is becoming rather frail made 'mirror' EPOAs giving such powers to four persons. Any three will be able to manage the assets in the best interests of the donor. To ensure adequate liquidity for medical attention, this may include selling assets, arranging investments and any other action necessary. Fully detailed EPOAs were drawn up and signed before the Notary and filed for the future.


The second new law is called Anticipated Medical Instructions and is covered by the Ley1/2002 dated 28th January. This sets out instructions addressed to and mandatory to your family, your beneficiaries and the medical centre. These clearly specify the precise course of action they are required to take should you become incapable of making such decisions yourself because you are in a terminal medical condition.

The document sets out how you wish to be treated, thereby avoiding possible medical and or family arguments.

Both these new laws could be said to anticipate future problems. As we live longer and medical science advances they could avoid many difficulties by setting out your clear and unequivocal wishes.

As the heading says, you are gaining 'peace of mind' by avoiding the difficulties and heart breaking decisions that could have been left for your family, beneficiaries and friends.



OTHER NEW LAWS AFFECTING THE EXPATRIATE

Ley 13/1997 dated 23rd December makes considerable changes in the inheritance tax regulations. In simple terms, IHT and death duty for those over 65 years of age and officially resident in the La Comunitat Valenciana is reduced and in many cases will not be charged. However, it is necessary to prove residence in Spain and evidence that you are registered with the local Ayuntamiento (Padron Municipal) and fulfil your tax return (Impuesto de la Renta).

Ley 39/2006 dated 14th December covers the need of elderly or disabled persons who require home care or other assistance. It is intended that this should come fully into force within three years. It will cover those who are resident in Spain and require home care and assistance. It is similar to the Supplementary Benefits that are available in the United Kingdom.

Clearly the Spanish authorities are moving towards recognising the new European Union laws and the importance of these on both expatriates and Spanish nationals. In turn, they are anxious that those who 'live' in Spain should do so officially and complete the necessary papers to prove it. This is important so that towns like Javea can prove to the EU the accurate number of residents which will enable them to gain the maximum grants and assistance from both the EU and the Madrid authorities.

A most important new law amends the existing identity card, known as Tarjeta de Regimen Comunitario. All EU citizens who live in Spain should obtain a new Residence Certificate when their current document expires or immediately if they intend to seek work. Here's how.

1
Go to your local police station with your passport and a photocopy, 2 passport size photographs (only if this is your first registration) and a Certificado de Empadronamiento (Padrón Municipal) not more than 3 months old. This can be obtained from your local Ayuntamiento. An application form can be filled in on line and printed to take with you (two copies) by going to this link.
http://www.map.es/servicios/servicios_on_line/extranjeria/modelos_oficiales_solicitudes/ex16/document_es/Ex-16.pdf

2
Complete the forms they will provide (original and a copy) of the document known as SOLICITUD DE CERTIFICADO DE REGISTRO COMO RESIDENTE COMUNITARIO. (Unless you have previously downloaded this).

3
You will need to pay a 6.70 euro fee at any bank and affix the payment stamp to your application.

This is the only document you will need as proof that you are resident in Spain. The latest information we have is that the Tarjeta de Regimen Comunitario will be replaced on expiry with the CRC

Our Company lawyer has carried out considerable research on all these matters and will be able to assist in everything above except the CERTIFICADO DE RESIDENT COMUNITARIO (CRC). He writes to me as follows on this matter:

"I am only able to help with securing this document when clients can produce a medical certificate to say that they are not fit to travel to the police station."

Toby Carpenter

Apartado 319
03730 Javea (Alicante)
or telephone for appointment
00 34 96 579 1694
00 34 609 812 285


For further information contact us on toby@cvcarpenterassociates.com