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Schumacher family denies rumours of move to Mallorca

Ex-Formula One champion Michael Schumacher is not being moved from his home in Switzerland to the Spanish island of Mallorca, a spokeswoman said Thursday, denying a report by a Swiss magazine.

Published: 16 August 2018 18:22 CEST

Schumacher family denies rumours of move to Mallorca

A shot of Schumacher taken in 2012 more than a year before his accident. Photo: AFP

Swiss news magazine L'Illustre reported this week that the seven-time world champion, who sustained serious head injuries in a 2013 skiing accident, was being moved to a vast property in the village of Andratx on Mallorca, recently purchased by his wife Corinna.

#Schumacher leaves Switzerland for Majorque

Nearly five years after the terrible ski accident in Meribel, Michael Schumacher will leave Switzerland for Spain. This is what reveals the Swiss magazine “L'Illustré” pic.twitter.com/nyBJjcmukK

— re#TWEET 50States TREND United States (@gautier235) August 15, 2018

A number of media around the world have picked up the story in recent days, prompting the family to exit its habitual silence on all private manners.

“The Schumacher family does not plan to move to Mallorca,” family spokeswoman Sabine Kehm told AFP in an email.

L'Illustre based its story on a comment from Andratx mayor Katia Rouarch, saying she could “officially confirm” the 49-year-old German sportsman would be settling in the village.

“Everything is being put in place to accommodate him,” she was quoted by the magazine as saying.

'Misunderstanding'

But the municipality on Thursday issued a statement maintaining that Rouarch had been misquoted, “probably (as a) result of misinterpretation or misunderstanding, perhaps due to language translation.”

In its statement, the Andratx city council said the mayor had confirmed to L'Illustre that the Schumacher family had recently bought a house there.

“She did however not give any information about a potential relocation of Michael Schumacher and/or his family in our municipality of Andratx,” it said, stressing that the mayor “doesn't have any information about it.”

“The only thing that Rouarch declared to the journalists was that 'in case the family decides to move here, we will be prepared for their arrival',” the city council said.

“With this communication we want to reiterate these words were meant just in case the family come here. Obviously, in that case, Michael Schumacher and his family would be welcomed in our municipality.”

It appears that the vast property that Corinna Schumacher reportedly bought from Real Madrid president Florentino Perez in Andratx for some €30 million ($34 million) is meant to be used as a vacation home for her and the couple's two adult children.

Schumacher fell and hit his head against a rock while skiing in the French Alps with his family in December 2013.

He spent time in hospital in Grenoble and Lausanne before being brought to his home on the shores of Lake Geneva in Switzerland in September 2014 to continue his rehabilitation.

Schumacher's family has avoided providing any details about his health, insisting it is not a public issue, and his current condition remains a mystery.

Navigating Spain's real estate market: A guide for American homebuyers

Buying a residential property in Spain can be an exciting yet complex endeavour, especially for American buyers unfamiliar with the intricacies of the Spanish real estate system.

With varying regulations at the state, regional, and local levels, it is crucial to be well-informed and well-prepared.

In this article, Maryem Essadik, immigration lawyer and head of English-speaking international law firm Marfour, offers US nationals a breakdown of the key considerations when buying a Spanish property.

Legal Complexities

Spain’s legal framework for real estate transactions is multifaceted, involving regulations that differ significantly between the national, regional, and local levels. Therefore, engaging specialized real estate lawyers is highly advisable.

1. State, Regional, and Local Regulations: The Spanish legal system is characterized by its decentralized nature. Each autonomous community in Spain can have distinct laws affecting real estates and property transactions. For example, while some regions may establish restrictions for renting out properties (ie. Limitations or prohibitions on carrying out short-rental activities, limitations on long-term rental prices etc.), others might have significantly varying taxes and fees associated with property purchases, and others can also count with a singular regional Civil Code that regulates in a particular manner important aspects such as the initial down payment contract (“Arras” in Spanish) when buying a property. Municipal regulations can also considerably impact property use and renovations.

2. Legal Representation: A lawyer with expertise in Spanish real estate law can navigate these complexities, ensuring compliance with all applicable regulations. They can conduct due diligence, verify property titles, and check for any encumbrances or legal issues that could affect the purchase. Legal representation is not just a formality but a necessity in Spain to avoid potential pitfalls.

3. Immigration legal advice: In connection with the property you want to buy in Spain you should receive the proper immigration law advice. Nationality and Immigration regulations in Spain are a complex but at the same time exciting field to navigate to find the best solution that will be matching your concrete case and circumstances (i.e: Digital Nomad Visas, Non Lucrative visas etc.)

LISTED: The visa options Americans can apply for to live in Spain

Fiscal Considerations

Taxation is another critical area that requires careful attention. Spain’s tax system includes various taxes that can impact the overall cost and benefits of owning a property.

1. Tax Residency: Determining your tax residency status is essential as it influences the taxes you are liable to pay. If you spend more than 183 days in Spain in a calendar year, you are considered a tax resident. You can also qualify as tax resident in Spain if having in this country the centre of your economic interests. Tax residents are subject to Spanish income tax on their worldwide income, while non-residents are taxed only on income generated in Spain.

2. Income Tax and Wealth Tax: Spain imposes income tax (IRPF) and wealth tax (Impuesto sobre el Patrimonio) differently across its autonomous communities. The rates and allowances can vary, so understanding the specific regulations in the region where you plan to buy is crucial. For instance, some regions might have higher exemptions for wealth tax, impacting the overall cost of owning high-value properties.

3. Rental Income: If you plan to rent out your property, you need to be aware of the taxation rules on rental income. US tax residents are currently taxed for their rental incomes in Spain at a 24 percent flat rate on rental income (not being allowed to deduct any expense), whereas Spanish tax residents include rental income in their general taxable income (with different expenses being tax deductible), which could be taxed at progressive rates. Counting with the appropriate assistance of tax lawyers specialized in American clients and with a full knowledge of the US-Spain Tax Treaty can considerably help you to improve your tax bill.

4. Special Tax Expats Regime: Implemented at the time that David Beckham joined Real Madrid (and known because of that as “Beckham Regime”), that regime may allow you enjoying the pros of being a tax resident in Spain, by living in this country exceeding 183 days per year, but taking advantage of a 24% flat rate and only making taxable in Spain labour incomes together with other incomes generated in Spain but not being taxable in Spain those sourced abroad. This tax regime has a maximum total 6 years duration and those who are eligible for it they also avoid filing Wealth Tax in Spain for their worldwide wealth.

To properly apply for it, it is always recommendable carrying out a previous tax planning and analysis with specialized Tax Lawyers before buying your property and moving to Spain.

READ MORE:

Property Inspections

A thorough technical inspection by a qualified architect is advisable to ensure the property meets all regulatory standards and is free from structural defects.

1. Construction Defects: Architects can identify potential issues such as structural integrity, water damage, and compliance with building codes. This is especially important for older properties or those that have undergone renovations.

2. Urban Planning Compliance: The inspection should also verify that the property complies with local urban planning regulations. Non-compliance can result in significant fines or even demolition orders.

Buyer’s Agents

Unlike real estate agents who typically represent the seller and defend his interests, buyer’s agents work in the interest of the buyer, offering numerous advantages.

1. Local Market Knowledge: Buyer’s agents are well-versed in the local market conditions and can provide valuable insights into different neighbourhoods, school districts, community amenities etc. This knowledge helps in identifying properties that best match your preferences and needs.

2. Fair Pricing: Buyer’s agents can help negotiate better prices. They are familiar with the local market rates and can prevent the common practice of overpricing properties for foreign buyers.

3. Due Diligence: By conducting thorough market analyses and property evaluations, buyer’s agents can ensure that you make an informed decision. They also handle the negotiation process, striving to secure the best possible deal on your behalf.

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Financial Advice

Securing favourable financial terms can result in substantial savings, making it essential to seek expert financial advice.

1. Currency Exchange: For American buyers, currency exchange rates can significantly impact the cost of purchasing a property. Working with a reputable currency exchange provider can help you get the best rates, reducing overall expenses.

2. Mortgage Conditions: Comparing mortgage conditions from different lenders is crucial. Spanish banks offer various mortgage products, and an independent financial advisor can help you find the most favourable terms, considering interest rates, repayment periods, and other conditions.

Conclusion

Buying a residential property in Spain involves navigating a complex legal and fiscal landscape.

By engaging specialized lawyers, conducting thorough property inspections, utilizing the services of buyer’s agents, and counting with expert financial advice, American buyers can mitigate risks and make informed decisions.

With careful planning and the right support, purchasing a home in Spain can be a rewarding investment and a gateway to enjoying the country’s rich culture and beautiful landscapes.

This article was written by Maryem Essadik, immigration lawyer and head of English-speaking international law firm in Madrid Marfour (Contact: +34 698 917 840, [email protected]).

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