Do you want to know how much your house is worth?

Valuing a flat or a house correctly is essential to determine the price of the property, but first, we must be clear about the purpose of the valuation since the value of the property can differ greatly between the market value, cadastral value and the reconstruction value. We explain the differences.

Determining the value of a property, whether it is a house, flat or garage, can be necessary for various reasons. Whether we want to finance the purchase of a house, take out insurance, or know what taxes we will have to pay to the Treasury or the Town Hall, we will have to certify the value of the property. Even so, in each of these cases, the valuation of the property will be specific to the use made of the valuation.

Below we explain the types of valuations there are, and the factors to take into account when valuing a property:

Selling or buying a property

If you are considering selling or buying a property, it is essential that you actively participate in the valuation, and do not leave everything in the hands of the real estate agent. On the other hand, the heterogeneity of the real estate market makes it impossible to obtain a unified register that clearly reflects the sale and purchase, especially if we are referring to the second-hand market, therefore, there is no reliable data that can be used at a generalised level.

A valuation done by an approved professional guarantees, both to the buyer and the seller, that what is being asked for this property is within the market value at the time of the valuation. This is important because the value of the property can change significantly in a few months and may not be in line with the price that was being asked for the property when it was put up for sale.

Likewise, if we are buyers and require financing through a mortgage, the financial entity must ensure, through a real estate appraisal carried out by an approved appraiser, the real market value of the property in order to guarantee that, in the event of non-payment, it will be able to cover the debt. The cost of the appraisal is borne by the client regardless of whether the loan is formalised, and will also serve to establish the maximum percentage that the bank will be able to finance.

The cadastral value of the property

The cadastral value is an administrative value that is given to each property based on the data that appears in the real estate register, depending on the valuation criteria chosen by each local council. It is a fixed amount, but is updated in accordance with the annual coefficients approved by the General State Budget Law.

On the basis of the cadastral value, the amount of different municipal taxes is established, such as personal income tax, property tax, wealth tax and transfer tax, etc. This has a direct impact when calculating the amount we have to pay for the municipal capital gains tax, which calculates the increase in value of a property, if we want to sell the property. And when selling our property, we have to bear in mind that, as a general rule, the sale price can never be lower than the price reflected in the land registry.

If you want to know the cadastral value of a property, you can request this information from the electronic headquarters of the Register, from the Register Office, or by phoning your local Register office. However, the scope of the data that can be consulted will depend on whether you are the owner of the property.

Value of the cost of reconstruction

Making an estimate of the value of your property is an essential requirement if you want to take out a home insurance policy, but in this case, the value of the property is not equivalent to its market price. The insurance companies calculate the price of the policy according to the amount of money necessary to rebuild the property, in case of loss or total destruction.

Keep in mind that the Estimated Reconstruction Value (ECR) includes only the physical structure of the building, but does not include the land or contents, such as furniture or appliances. Even so, it is important to make sure that the amount of the coverage of the home is equal to the estimated reconstruction cost, to avoid having to add the difference out of your pocket in the event of a claim.

If you want to discover fair insurance for your home and for society, check 11Onze Segurs.

With rampant inflation and a crisis that seems to emerge, it is essential to know how to move the money we have saved in order to make the most of it. But how do you do it? What’s the trick to investing wisely? One of the keys is diversification.

After all, diversifying your savings means not putting all your eggs in one basket. But what are these five baskets? Where should I put my eggs? Although a large part of our money is probably well saved in a savings account, it is interesting that some of it is spread across different financial products. This will allow us to diversify our investments and, with patience, obtain a better return on our savings. If you are a beginner investor, take note!

1. Temporal diversification. It is important to invest in different products with different durations, i.e. short, medium and long term at the same time. This diversification over time should allow us to take profits at different points in time. 
2. Diversification between securities. Once we have established the time horizon of our investments, we need to analyse well what we are investing in. Diversifying between securities therefore involves investing in different types of products: shares, investment bonds, ETF packages, etc. In short, investing in a little bit of everything, so that the risk is lower.
3. Geographical and sectoral diversification. In addition, not only should we try to invest in a varied way and with different terms, but we should also try to invest in different geographical areas and sectors. Try to invest around the world, because if you do, you will get better results – don’t just stay in your own territory!
4. Diversification by growth potential. In addition to investing in geographical areas and sectors that are already consolidated, try to allocate part of the investment to emerging countries and sectors. In this case, we will be looking for a certain component of volatility, i.e. market fluctuation, which can give us an unexpected profit in the short term.
5. Diversification by product type. If up to now we have been talking about shares, bonds or ETF packages, we now add other investment products, of lesser or greater risk, such as savings plans, retirement plans, fixed assets such as housing, precious metals or cryptocurrencies. This completes the entire investment cycle!

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Sharing a current account with other people, whether they are family members, flatmates or partners, has implications both for the organisation of our finances and for our taxation. Mireia Cano, 11Onze’s head of agents, explains the different formulas for being listed on a bank account and the tax responsibilities they entail.

A first element to consider when we want to share a current account is the role of each person since they can be listed as an account holder, authorised person or legal representative.

Account holders are equally responsible for the money unless an official document proves otherwise. Moreover, the account holders “can have an indistinct signature, i.e. anyone can make transactions, or a joint signature, i.e. all of them must sign in order to make transactions”, as Mireia Cano explains.

Another option is for someone to be listed on an account as authorised or a recognised signature. In this case, the account holder is the one who has power over the money and who will be liable for tax purposes, although authorises another person to carry out certain actions, such as making transfers or withdrawing money. An authorised person may never create or cancel a bank account or linked card contracts.

A third role is that of a legal representative, which is used, for example, for the accounts of minors and dependants. Legal representatives have power over the money in the account even though they are not account holders.

When we share a bank account, it is essential to bear in mind how each of our actions and those of the other people involved can affect us. Therefore, it is highly recommended that, before opening the account, we define what we will use it for and be clear about what it will imply for each person and what responsibilities we are assuming in legal and tax terms.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

What are futures trading and what are the advantages and disadvantages for buyers and sellers in a context of inflation? We explain how futures market operations work, a type of trading that was already in use in Ancient Egypt.

In the financial sector, a futures transaction is nothing more than “a purchase and sale that will take place in the future, but for which we agree the price today”, as Mireia Cano, 11Onze’s head of agents, explains. Ancient civilisations such as the Egyptians and the Romans already used this type of agreement to buy raw materials or agricultural products before the harvest. Today, many types of products, from commodities to currencies, can be bought and sold on futures markets.

Futures transactions are traded in an organised and controlled market. To minimise the risk of the transaction, the two parties “provide a deposit that commits them to carry out the transaction, or to assume the penalty otherwise,” according to Cano.

In financial terms, the selling party is said to have a short position and the buying party a long position. The agreement between the two parties must specify the asset, i.e. the product or commodity being traded; the quantity of this asset; the price and the way in which the contract will be settled; the place and conditions of delivery, as well as the maturity date of the operation.

The benefits of futures trading

Obviously, the market price of the agreed product can go up or down between the moment we formalise the operation with a closed price and the maturity date. Depending on the evolution of prices, it may be the buyer or the seller who benefits financially from the transaction. “Therefore, forward purchases are a question of time and risk,” says Mireia Cano.

In any case, both parties benefit from this type of operation in the sense that they are protected against market volatility and are guaranteed a purchase or sale that is necessary for them. These certainties are especially important for individuals or companies that buy or sell a large volume of products, as prices can change a lot, especially in such an inflationary context.

Another point in favour of buyers is that the execution cost, i.e. the margin they negotiate and advance to the seller at the trading stage, is usually low and fairly standardised, except when the underlying asset is highly volatile. In addition, the futures market offers “great liquidity because, as it operates on a daily basis, there are many facilities for placing orders every day and quite quickly,” explains the 11Onze’s head of agents.

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From 2023, the minimum fixed contribution of 294 euros for the self-employed will give way to a progressive system of 13 tranches depending on earnings, whose quotas will vary each year until 2025. This has been agreed between the Spanish Government and the main self-employed associations ATA, UPTA and UATAE.

The self-employed contribution in 2023 in Spain will range from 230 to 500 euros, depending on the annual income of each self-employed person. The range will be extended in the following two years. The biggest beneficiaries of the reform will be the self-employed with the lowest incomes.

The agreement envisages that the self-employed who earn less than 670 euros per month will pay 230 euros per month in 2023, which will save them 767 euros a year; 225 euros in 2024, which will save them 827 euros; and 200 euros in 2025, which will save them 1,127 euros.

The self-employed with earnings of more than 6,000 euros per month, the ones with the highest contribution, are at the opposite end of the table. In this case, the contribution will be 500 euros a month in 2023, 530 euros in 2024 and 590 euros in 2025.

A simple calculation

To determine the contribution, the self-employed must calculate the net annual income, subtracting deductible expenses from net income, and then add the Social Security contribution and subtract 7%, which is the estimated percentage for expenses that are impossible to justify. From there, divide it by the 12 months of the year to check the amount to be paid to the social security authorities. The amount may be modified up to six times a year depending on the evolution of income.

The reform of the self-employed quota was one of the commitments made by the Spanish government to receive the next tranche of Next Generation funds and still has to go through the parliamentary process. With the new Special Regime for Self-Employed Workers, self-employed workers will now pay contributions on the basis of what they earn, just like salaried workers.

The self-employed associations have welcomed the change from a system with a minimum contribution of 294 euros, which until now could be increased voluntarily to improve benefits, to this progressive system, which establishes contributions according to net income. Currently, nine out of ten self-employed currently pay the minimum contribution.

One of the few drawbacks of the new system is that it could encourage the underground economy, as some self-employed workers could hide part of their income in order not to jump from one bracket to another.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Digital Banking is a term that refers to the digitisation of all traditional activities and services of analogue banking, which in the past were only accessible to customers when they moved to a branch. A process of change that has been going on for years, but which has accelerated enormously in recent years, mainly due to the generational change that the market is undergoing.

Every year the millennial generation is achieving higher levels of consumption of financial products, and today they are already the generation that consumes the most. Therefore, the market has had to adapt progressively to the differentiated needs and preferences of millennials, who demand agility, speed and accessibility. The achievement of this digitalization process is creating new opportunities for financial institutions and, above all, for society, allowing to directly reach people living in all kinds of different realities and situations.

Digital banking and online banking: are they the same?

As a starting point, there is a fundamental difference between the terms digital banking and online banking that should be distinguished. Online banking refers to the evolution that many traditional financial institutions have made towards the online world: it is a digitisation process that focuses on offering online certain basic services and products from their catalogue, such as money transfers or the basic management of current accounts. For other matters, however, it is still necessary to go to the branch.

Digital banking, on the other hand, refers to the intention of offering all the activities and services of traditional banking, but transferring them to the digital environment in order to reach the consumer directly, reducing intermediaries to a minimum and streamlining the entire process. Thus, apart from being able to make transfers or control the movements of our account, we can also apply for a loan or apply for a mortgage without having to go to the bank offices.

The transition from analogue to digital banking

In the beginning, banking was entirely analogue. It offered such basic services as transfers, management of current accounts, checks and promissory notes, credit or debit cards, cash withdrawals and deposits, loans and mortgages. It was, however, necessary to go to the branch to carry out most of the transactions.

Later, especially from the 2000s onwards, new ways of managing financial transactions without having to go to a bank branch in person began to appear: online banking was born. This gradually allowed greater use of online commerce, although at that time it was still somewhat rudimentary, and had not yet become fully popular among the general population. It was at this time that payment methods such as PayPal were born, in response to a new consumer need that had not existed until then: being able to securely pay an unknown trader for an online product.

In 2010, however, the unexpected success of the first iPhone and smartphone models pushed society towards a new innovation: mobile banking. The currently well-known applications or apps began to be designed by traditional banks, with the aim of being able to have access to the banking services of our lifelong bank from the palm of the hand. This new technological revolution also allowed the appearance of contactless payments, making life easier for millions of people.

Finally, the massive use and popularization in broad segments of society, not only in millennials and young people but in the vast majority of adults and older people, has recently led to the creation and popularization of digital banking, with the most visible face being neobanks. Thus, with these new Fintech and applications that have nothing to do with those of the past, you can navigate and request any of the traditional financial services quickly and intuitively, reducing information barriers for consumers.

The rise of neobanks

In recent years, neobanks have led the digitization of financial services, taking full advantage of their digital capabilities: leveraging online platforms and data analytics to generate social interaction, providing cards instantly, offering personalized information and assistance to customers, etc.

At the beginning, they were aimed primarily at a digital native audience, such as generation Z and millennials, but little by little they have been attracting many other more diverse segments of the population and from different fields. This has been thanks to two main factors. Firstly, the cost reduction they have been able to offer in their services thanks to the lack of offices, as opposed to traditional banking, which has to pay very high rents and usually suffers from many cost overruns.

On the other hand, it is also due to the effect that the Covid-19 pandemic has had on many older consumers, as they have wanted to find a way to be able to continue carrying out their usual financial activities without having to leave home, and it is precisely in this area where neobanks have a comparative advantage over other financial institutions, since they move like fish in water in the digital area and have much more experience.

Direct banking: reaching the whole society

The popularization of these digital services has led to the emergence of the concept of direct banking: the possibility and the will to reach all customers, wherever they are and whatever their segment. New products and services can be offered to specific customer segments without suffering from geographical limitations. It is possible to reach consumers of different educational levels, of different economic incomes, personalized attention can be given to millions of people who otherwise would have no one to turn to, or to whom the traditional entities might not serve in the desired way due to physical limitations.

It is, in short, in an increasingly fast and interconnected world where the combination of current technology with new preferences for agility and accessibility allows neobanks and digital banking to put customers at the center.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Money has been a part of our lives since we were young. From the first coins we put in the piggy bank, the money our grandparents gave us on our birthday, our first summer job, the help of our parents to satisfy our first whims… And suddenly, comes the age in which, among many other changes, for the first time we have control over our money. But have we been taught about how to manage our money? Will we be able to become independent, to have enough resources until the end of the month? The answer is yes, it’s up to us to control all of this, and it only takes a little bit of organisation to get the most out of it.

Why do we need money?

The first stereotype about money we have to break is comparing ourselves to others. Calculating what we have or earn myself compared to other people around us is neither objective nor realistic. Everyone is born and raised in certain conditions and many of them are out of our control or influence. If you’re studying and you’re just starting to figure out what your life will be like, take the pressure off yourself, because nothing is written, and the important thing is not where you start from but where you are going to arrive. So, the first thing to do is to analyse the current situation and determine our medium-term goal. Living at home with our parents and focusing on our studies will not be the same as having the willingness to become independent, although to achieve this we have to invest part of our time working. Determining this will lead us to the next question: how much money do I need to live?

At this point, we need to start playing with our finances and differentiate between fixed and variable expenses, just as companies do. Fixed expenses are there every month whether we want it or not, such as the rent of the flat, the gym, the transport card, or a Spotify subscription. Variable expenses are those whose amount can vary from one month to another depending on our needs. For example, although food is essential, we do not spend the same one month and the next, and this is precisely one of the points where we can cut on expenses. By this we do not mean stopping eating or only buying the cheapest products on the market, regardless of their quality. Rather, we mean the opposite: focus on responsible consumption.

How can I reduce my monthly spending?

One only has to look at the current environment to see that consumer trends, that is, the type of purchase that most of the society makes, are changing, and more and more people seek local products, more quality, and less quantity, instead of buying in large industrialised superstores. These small changes allow us to make conscious purchases, prioritizing only the products we need and taking care of our health and economy at the same time. An example that we can apply to our daily lives could be to drink water in reusable containers (glass or metal bottles) and thus avoid the daily purchase of water bottles, replacing them with larger bottles that are cheaper and last longer.

We can do the same at the time of purchase, carrying our bag to avoid buying plastic bags. Another useful trick can be to organize our weekly menu to know what we will eat each day and therefore planning beforehand what we need to buy. Nothing more and nothing less. When it comes to hygiene products, we can opt for family packages, that imply more quantity for less money, or alternatives such as soap bars or menstrual cups that, in addition to being cheap, do not generate waste. There are also bulk stores where you can buy only the amount you need, whether for groceries or cleaning products. Research your area and look for the option that best suits your pocket, always remembering that what has always been done, or what most people do, is not always the best option for you.

With regard to transport, it is also necessary to look for this balance and consider alternatives to private transport, which means a higher cost if we add petrol, taxes, insurance and car repairs. Public transportation or cycling are two inexpensive options that can help us control our spending while caring for the environment. Even when going out we can cut expenses if we act conscientiously. Booking in advance, taking advantage of offers and discounts, or establishing the amount we want to spend before the night starts will help us keep some control. If the latter part is the most difficult, a trick can be to carry only the amount we want to spend. That way, there will be no room to go over budget and this will allow us to better manage the nights out , without spending a single more euro than we planned.

Monitor your finances from your mobile phone

These are some of the recommendations that will help us keep track of our savings, but the important task is to analyse our particular situation and ask ourselves the following questions: What income do I have? How much should I spend on fixed expenses? What do I have left for leisure? Do I need to save for the future?

Our main advantage is that there are currently applications for almost everything. Controlling our finances has never been so easy. Most banks have been pulling up their socks for years so that the new digital customer experience is intuitive and agile. In a single click, we have at our disposal all the information we want, from the total balance of the account (the money we have), to the expenses we have made with the card, seeing graphically where we are spending most of our money. This will allow us to get an idea of our current situation and where we need to direct future efforts.

Work and save, our two greatest allies to have money

A key tool for managing our savings are digital piggy banks, a secondary account where we will put the money we want to spend on a specific activity. The operation is simple: we have to set a goal, be it a trip or something we want to buy, and from there we calculate how much we would have to deposit each month. We need to find a balance between what we want and our current resources. If we want more money, we will have to work harder. If we can’t work harder, we need to manage it more efficiently. Whatever our situation, taking control of our finances and knowing at all times what is happening in our bank account is a must.

Our last piece of advice is to keep in mind that we never walk alone. We have parents, family, and a lot of people around who can help us understand what all that money has to do with, which is ultimately about understanding how the world works today. Having their support and following their advice is an indispensable pillar for this first contact with the world of finance to be clear and understandable. When we take control of our money, we take control of our lives.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

Looking for financing is no longer synonymous with going to the bank. Nowadays, there are a wide range of other options that can be an alternative and that need to be known.

Ignorance about the existence of credit providers other than banks is still the main obstacle: only one in three businesses is aware of the existence of Fintech or digital financing platforms, and only 20% say they have used them. This data is taken from the fintech and alternative financing business barometer, created by the Institut d’Estudis Financers (IEF) in collaboration with Altria Corpo and presented on 2 February.

According to the same survey, 40% of businesses believe that access to banking credit has tightened in the last 12 months and, even so, 50% believe that they will need access to it in the next 12 months. One of its drivers and attractions is therefore easier accessibility than banks. Its costs are also realistic: the interest rates are usually in line with the market, so as to be competitive, and at the same time, there are no surprises or unexpectedly high interest rates.

But what are these “other forms of financing”?

Businesses that are already using them opt mainly for factoring, renting and leasing (representing 25% of the total). Other options such as crowdlending or crowdfunding are more common in the start-up world. But let’s find out what is behind these terms:

• Factoring is used by businesses to advance collections: as simple as the provider of this service will pay us in cash for the invoice we have pending with a client (on credit) and will take care of the subsequent management. We will be subject to interest and, possibly, a commission of the costs. There are various types, depending on the assumption of the risk of non-payment. We should also mention confirming, the reverse option, where the supplier assumes the payment of invoices and converts them into credit.
• Renting allows the rental of movable assets, such as vehicles, office or computer equipment, for periods of more than one year. Fixed instalments will be established as payment, which often include maintenance, insurance, etc. We will enjoy a new asset in perfect condition, without having to make a significant initial outlay. The main difference with leasing is that, in this case, it incorporates a purchase option at the end of the contract.
• Crowdlending is a form of lending by investors, with a low-interest return, without the need to go to the bank. We can find providers such as Ecrowd!, dedicated especially to technology projects, which offer this financing option.
• Crowdfunding, widely used in start-ups, is based on obtaining the interest of other people in our project and raising funds in exchange for offering an advantage or privilege later; very oriented to product launches, preference or discount on the purchase could be an example of consideration. It will be fairly easy to find many crowdfunding platforms to get started.
• Investments of a more professional nature are known as crowdinvesting or business angels, where funding is received from companies or players in the sector and who will usually ask for a percentage of future profits in return.

As we have seen, the orientation of alternative financing to banks tends to be towards investment in business projects rather than individuals, although options such as renting or leasing can be useful in the latter case, if we think for example in the case of a salesperson who wants to enjoy a vehicle without the high costs of wear and tear and the purchase of a new one every few years. In both cases, we must not forget or rule out public financing through subsidies or grants, such as those offered by the Generalitat, city councils, such as Barcelona’s, or the Chambers of Commerce. Many of these grants have been created or increased specifically to alleviate the negative effects of the pandemic, and you just have to keep an eye on the different calls for applications.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!

The Spanish government has finally approved the reform of the National Security Law, but the great power granted to the public authorities to deal with very ill-defined crisis situations raises serious concerns about how it could affect our fundamental rights. Miriam Frias, financial assistant at 11Onze, analyses the news.

Officially, the National Security Law of 2015 aims to ensure that the State can have the strategic resources necessary to deal with crisis situations, risks and threats that affect national security. The new text does not affect the essential content of the law, even so, it centralises more competences and specifies some actions to be carried out in crisis situations to guarantee that in such scenarios the country will have the basic resources.

The concept is nothing new, and both Spain and other countries have laws designed to guarantee critical resources, urging business and state collaboration, during a context of extreme crisis, as we suffered during the Covid-19 pandemic. Even so, and as Miriam Frias explains, “modifications have been made that have not reached the public and are still an unknown quantity“.

The balance between rights and duties

The ambiguity and lack of specificity of the text allow for an overly broad legal interpretation that generates mistrust among the population. “It is an ace up the government’s sleeve that it can use when it deems necessary,” says Frias. This means that the state “could force any person of legal age to perform personal services and to comply with orders given by the authorities”.

The reform of the law has also set off alarm bells among businesses concerned that the state could seize their assets, stop their activity or even occupy them temporarily. As Frias explains, “businesses and legal entities would also have to provide personal or material services. The state would have the right to confiscate, requisition or expropriate all kinds of assets”.

After the experience of the abuse and scope in the application of article 155, it is worrying, to say the least, that a national security law, which a priori has to be more effective and quicker in its application than this article of the Constitution, does not guarantee that there will be no abuse of authority by representatives of the executive branch of the state. “We hope that these situations and examples will never materialise, but it is important to be aware of them, because nothing is impossible,” Frias concludes.

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Last January the Court of Justice of the European Union annulled Model 720, and this week the Supreme Court forced the Treasury to return a fine for assets abroad, definitively overturning its effects on personal income tax (IRPF).

We recall that Model 720 was introduced in 2012, just after the implementation of the tax amnesty, when the then Finance Minister of the Popular Party, Cristóbal Montoro, wanted to increase state revenue in the midst of the financial crisis, making sure that not a single euro escaped. Time has shown that it was not an effective measure by those close to his party or part of the Spanish royalty.

The regulation required citizens resident in Spain to report assets abroad in excess of 50,000 euros. It also established high fines of up to 150% of the amount to be declared if this information was submitted to the Tax Agency after the deadline.

A blow from the European Court of Justice

In January 2022, the Court of Justice of the European Union (CJEU) overturned the entire regulation, both the basic mechanism and the high fines, considering that the restrictions on the free movement of capital introduced by Model 720 were disproportionate.

On the other hand, the ruling annulled the practice of non-prescription, which the Treasury had been systematically imputing to all the declared assets, without assessing whether the facts prescribed by the limitation period in the tax sphere, currently set at 4 years, so that the amounts to be paid were determined.

Therefore, the ruling concludes that taxpayers who had declared assets abroad using Model 720 do not have to pay the debts for the prescribed years, and that the penalties applied are unlawful. It is precisely on this point that the Supreme Court has based its decision to stop the tax authorities from charging the assets abroad contained in the tax return as unjustified capital gains because they are not subject to the statute of limitations.

The Supreme Court applies the CJEU ruling

This was reflected in a ruling of 20 June in the contentious chamber, which upheld the appeal lodged by two taxpayers against a ruling of the High Court of Justice of Extremadura that condemned them for declaring, outside the time limit, real estate assets abroad. A significant fact because it cancels, for the first time, a sanction of Model 720, as disproportionate.

Therefore, the Second Section of the Contentious-Administrative Chamber agrees with the individuals, and annuls the decision of the High Court of Justice of Extremadura, ordering them to return the money, plus the corresponding interest. The court thus seeks to establish proportionality between the seriousness of the act committed and the balance of the current accounts not declared by the taxpayer.

This ruling opens the door to all those penalised taxpayers who, being unhappy with the disproportionate penalties imposed by the Tax Agency, have systematically gone against the application of these penalties and who could now see their amount significantly reduced.

11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for Android or iOS and join the revolution!