Nyesa’s Share Price Soars by 23% as it Announces Negotiations with Spanish Investor

9 March 2018 – Eje Prime

The stock market is rewarding Nyesa. The company has seen its share price soar by 23% due to negotiations with a Spanish investor. The company has informed Spain’s National Securities and Exchange Commission (CNMV) that it is negotiating an investment contract to not only carry out a non-monetary capital increase but also to incorporate new real estate assets into its portfolio in Spain.

“The investment contract establishes that the capital increase is conditional upon Nyesa considering that the technical, legal, tax, labour, financial and urban planning reviews of the assets to be contributed are undertaken in a completely satisfactory way”, say sources at the group. “Moreover, the deal will also be subject to the investor accepting the new valuation of the assets to be contributed, based on a preliminary valuation of more than €17 million”, they conclude.

The forecast issue rate for the capital increase is €0.060 per share (of which €0.015 corresponds to the nominal value and €0.045 to the issue premium). In this regard, it was also reported that as a consequence of the execution of the capital increase, the investor would reach a percentage stake of less than 13% in the share capital of Nyesa Valores Corporación.

The operation forms part of the process to search for partners, investors and real estate projects that help to define and support the strategy and strengthen the development of the company’s business. Specifically, with the execution of this capital increase, the company’s equity position would be strengthened through the incorporation of assets that generate recurrent income.

Original story: Eje Prime 

Translation: Carmel Drake

Constitutional Court Suspends Tax On Empty Homes

4 May 2016 – Expansión

The Constitutional Court (TC) has suspended three laws approved by the Catalan Parliament, after they were appealed by the Government at the end of April. The laws in question are: the law that taxes empty homes, the local government law and the law for equality between men and women. The appeals have been accepted for processing, which means that the laws themselves have been temporarily suspended. Nevertheless, the acceptance for processing and the temporary suspension do not represent a ruling of any kind regarding the outcome of the appeal.

According to the acting Justice Minister, Rafael Catalá, who spoke at a press conference following the Council of Ministers meeting held on 22 April, the Government is challenging the law that establishes a tax on empty homes because that taxable event is already taxed under the current system for financing local governments, which provides for surcharges of up to 50% under IBI. (…)

The appeal against this Catalan law is surprising if we consider the fact that the Stability Program, which the Government has just submitted to Brussels, praises this law as one of the measures that the regional Governments are using to try to guarantee revenues “such as the tax on empty homes and the tax on tourist accommodation”, it says.

Original story: Expansión

Translation: Carmel Drake

Opposition Parties Force Carmena To Reduce Business IBI

1 October 2015 – Expansión

The opposition parties in the Town Hall of Madrid (namely, the Partido Popular, PSOE and Ciudadanos) have put paid to the plans of the mayoress, Manuela Carmena, to increase the IBI rate for businesses and companies to 10%. In fact, they forced an agreement for it to be decreased by 2%. (Earlier in the week), all of the political parties, including Ahora Madrid, approved a 7% reduction in the residential IBI rate, and now, the opposition parties have forced a 2% decrease in the business rate.

The agreement by the plenary session represents an overall decrease of 100% for residential properties, as well as for the vast majority of non-residential properties. The 7% reduction in the property tax, will decrease the tax from its current rate of 0.548% to 0.51%.

Moreover, the majority – the result of the vote went against Ahora Madrid – approved a commitment to continue to reduce the rate of IBI for residential properties to 0.4%, the minimum rate set by law, “respecting the payment of expenses approved by the government, as well as sustainability”.

Meanwhile, the PP congratulated itself after some of the proposals it had presented to the plenary session were approved, including: zero taxes for entrepreneurs for the first two years (…).

In the same way, it indicated that large companies should not have to pay taxes for having “larger” buildings since “the rate of IBI is progressive and so it does not make sense for smaller clinics to pay a lower rate of IBI than public hospitals”.

Begoña Villacís, from Ciudadanos, said that the Town Hall should have a “single discourse” regarding the payment of debt, and the tourist tax. Moreover, she said that her party proposes a reduction in taxes and that the Town Hall should support the cadastral review plan.

The socialist Ransés Pérez Boga pointed out that on 22 July the plenary session approved a decrease in the rate of IBI, after it had been proposed by his party. He advocated a decrease in the rate of business IBI “to maintain the social progressive nature of the tax charge”. In his judgement, the reduction will allow companies to retain their employees.

Original story: Expansión (by Mercedes Serraller).

Translation: Carmel Drake

Madrid’s Property Tax (IBI) Will Decrease By 7% In 2016

22 September 2015 – El País

In October, the Town Hall of Madrid will approve a 7% decrease in the property tax (‘Impuesto sobre bienes inmuebles’ or IBI) for all homes and the majority of commercial premises, offices and retail stores. This decrease, accepted begrudgingly by the minority Ahora Madrid government following its enforcement by the other parties (PP, PSOE and Ciudadanos), will be passed with equal reluctance next month by the socialists, who were seeking a higher cut. The 7% decrease in IBI will be equivalent to a €25 reduction in the average monthly bill (€350).

Yesterday, a Councillor from the Treasury, Carlos Sánchez Mato (pictured), announced a 7% decrease in the rate of IBI for all homes in the capital (1,448,765 households) and for the majority of non-residential buidlings.

Nevertheless, the rate will increase by 10% for those non-residential buildings that have a “higher cadastral (land registry) value”. The Town Hall defines this threshold as follows: for individual buildings, the increase will apply only to those that have a cadastral value of more than €35 million (there are around 30 such properties in Madrid); retail stores worth more than €860,000 (around 3,000 of more than 97,000); buildings used for sporting activities worth more than €20 million (around 30 in total); and offices worth more than €2 million (1,760 out of almost 32,000).

These targeted increases to non-residential buildings with higher cadastral values will almost entirely offset the decrease in the rate of IBI for the rest of the city.

IBI is the main source of income from the Town Hall, and therefore any change in the rate significantly affects its capacity to provide public services: IBI will account for €1,279 million of the €4,388 million that the municipal coffers will receive this year (i.e. it accounts for almost one in every three euros). The changes proposed by Ahora Madrid will reduce this revenue by just 3.7%.

A new tax

This fall in revenues (€49 million) will be primarily offset by the creation of a new tax to be paid by the companies that generate the most waste. The other municipal taxes will remain unchanged in 2016, although there may be an as -yet-unknown decrease in the price of certain services (sports centres, kindergartens, etc). (…).

Original story: El País (by Bruno García Gallo)

Translation: Carmel Drake