Mercantile Law in Spain: Sources, Principles, and Enterprise
Legal Sources of Mercantile Law in Spain
According to the Civil Code (Art. 1 CC), the sources of the Spanish legal system, in descending order of priority, are:
- Law
- Customs
- General principles of law
Constitutional Distribution of Power in Commercial Law
The Spanish Constitution establishes a ‘state of autonomies,’ recognizing a degree of autonomy and self-government for various territorial entities while proclaiming the indissoluble unity of the Spanish nation.
Principal Authority in Commercial Law
The
Read MoreSpain’s Moderate Decade (1844-1854) and Biennium (1854-1856)
The Moderate Decade (1844-1854)
The moderate decade, spanning from 1844 to 1854, began with the resignation of Joaquin Maria Lopez’s government on the same day as the commencement of Elizabeth II’s reign. Salustiano Olózaga, a progressive party chief, was appointed as a substitute but was dismissed after nine days due to accusations of forcing the young queen to dissolve the courts.
The moderate party, under General Narvaez’s leadership, then dominated the political scene for the next ten years,
Read MoreLOFCA: Funding and Financial Autonomy of Spanish Regions
LOFCA: Financial Autonomy of Spanish Regions
The LOFCA (Organic Law on the Financing of the Autonomous Communities) establishes basic principles that broadly coincide with the EC (Spanish Constitution), to which is added:
- Principle of Stability: The state guarantees economic balance by taking measures to achieve economic stability, internal and external budgetary stability, and harmonious development between the various parts of Spanish territory.
- Principle of Sufficiency: The regions should have adequate
Corporate Tax, VAT, and Personal Income Tax: Key Exemptions
Corporate Tax (CT) Exemptions
In Corporate Tax (CT), exemptions can be categorized as either objective or subjective.
Objective Exemptions
Objective exemptions are granted for specific types of income and are aimed at eliminating double taxation or providing tax benefits. These exemptions are scattered throughout the articles of the Corporate Income Tax Law (LIS).
Subjective Exemptions
Subjective exemptions are granted based on the special characteristics of certain entities contributing to the CT. They
Read MoreMaritime Zones: Territorial Sea, Contiguous Zone, and High Seas
Maritime Zones: Key Concepts
Territorial Sea: Extends 12 nautical miles measured from the baseline (outer limit is a line every point of which is 12 nautical miles away from the nearest point of the baseline). The normal baseline is the low-water line along the coast as marked on large-scale charts officially recognized by the coastal State.
Maritime Delimitation Cases
- Guinea/Guinea-Bissau Maritime Delimitation Case (1988): In 1960, France and Portugal concluded an Agreement defining the maritime boundary
Understanding the State: Definition, Functions, and Necessity
What is the State?
The State is a political organization with sovereign power over a defined territory. This power is exercised through various administrations, and the State holds a monopoly on the legitimate use of force and violence.
Key Characteristics of the State
- Territorial Power: The State’s authority extends to the entirety of the territory within its borders. Every individual and organization operating within these borders is subject to the State’s rules.
- Sovereignty: At the state level,