Finally, if the debt is subject to the law on late payments, you should take into account that you can claim from the debtor all costs related to the procedures carried out to claim payment: procedural costs, legal advice, office fax or telephone calls. Conversely, the tax administration must also be accountable to its taxpayers if it is in debt. In this case, the calculation is also carried out taking into account the statutory interest. In the case of compensatory interest or moratoriums, the time of determination of the provision is the time when the debtor is in default (Articles 1100 and 1108 CC). The problem then moves to determine when there is a delay and whether it occurs automatically before the simple fact of non-compliance. Suffice it to point out that, in this regard, there are several theories which reduce the basis of the determination to the objective aspect, in which case it is sufficient that the obligation be breached, whatever the cause or reason, or in the subjective reason, which arises in case of default, which cannot do so. Legal interest rates are statutory interest rates that are not agreed between the creditor and the debtor. The statutory interest rate is the percentage established by law used to calculate the amount of damages that the debtor must pay to the creditor if he is in default, i.e. in culpable delay (intentionally or negligently) in the performance of his obligation to pay a certain sum of money – legal tender – that he owes. This statutory surcharge or penalty for delay in performance only applies in cases where no other contractual interest has been agreed between the creditor and the debtor in this case or when no other more specific legal provision is in force that sets a different interest rate depending on the issue in question.

Its legal nature is governed by Article 1108 of the Spanish Civil Code. Curiously, the Commercial Code, which regulates an essentially lucrative activity in terms of commercial obligations, does not allow anatocism. Article 317 CCom precludes this in the case of default interest, even if the claim has been invoked in court (Article 319 CCom). Although today this has many nuances that lead to the distortion of this obstacle. Legal interests are determined by the General Law on State Budgets. These are those applied by the judge in a judgment for violation of the responsibility of a monetary debt. Statutory interest is set annually in the General State Budget Act. Default interest for tax purposes is the statutory interest rate on money increased by 25%, unless otherwise provided for in the Law on General State Budgets. Those of recent years can be found in the table of default rates. While this is an ancillary obligation, it does not prevent the obligation to pay interest from having an independent life once it has accumulated and become due.

Thus, it is quite possible to charge interest if the principal has already been repaid in full. There is no equivalence between conventional and lucrative interest rates and statutory and compensatory interest, as the two categories may appear to be mixed. Conventional interest may refer to the return on investment, but may also be set by the holders of the bond in the event of default. And lawyers can also determine the amount of remuneration corresponding to the collection of capital, which is very unusual in private law transactions because it is based on the freedom of disposition of the parties (Article 1255 CC), and more often which should be that corresponding to the penetration of arrears, for example the interest provided for in Article 576 LEC in relation to these judgments, order the payment of a liquid amount ipso jure and establish the payment of interest ipso jure; as well as section 20 of the Insurance Contracts Act in the event that insurers fail to comply with their obligation to pay damages arising from such contracts. In addition to official benchmarks, there are other interest rates that are classified as legal interest rates because they are set by rules with the rank of law. We get the annual amount of statutory interest on the money (because it`s an annual order of magnitude), and with this result we can get the amount we need. The legal interest rate on money in 2022 is 3.00%. Article 1109 of the Civil Code provides for them for cases of judicial claims, although it is not difficult that, if they are expressly agreed in the obligation, they can arise earlier. Thus, the initial interest is added to the principal to determine the total amount on which default interest is generated.

Interest may also only be collected as part of the obligation to pay interest. In this sense, interest is not an ancillary obligation to the payment of principal, as it can be paid in full and continues to generate interest. Article 1108 of the Civil Code provides that debtors in default must pay the “payment of agreed interest and, in the absence of agreement, in the legal interest” as damages. The benchmark, which is calculated as a percentage, is dynamic and is modified according to the state of the country`s economy. The funny thing is that although it is the Civil Code that defines the legal interest, its renewal depends on the General State Finance Law (PGE), which it must update before the first day of the year. In the event of non-compliance, both the principal and the agreed interest-bearing interest may give rise to the obligation to pay further interest, in this case moratoriums. Anatovicism is the obligation that has as its object the interest debt for the non-payment of interest on a principal. Legal interest on money is a type of compensation for breaches of obligations (debts, loans, etc.) if the parties had not provided for such compensation. It is established by the Civil Code and regulated and updated annually in the General Law on the State Budget (hereinafter referred to as the Budget Law).

Let`s say we lend €6,000 to a friend without agreeing on lucrative interest or default interest (in case of late repayment of capital). The return period is 6 months and starts in January 2022 and ends in June of the same year. Statutory interest is calculated as damages if the debtor does not pay and a certain rate has not been agreed. It also serves as a reference for legal norms or agreements in contracts. Since 1987, it has been set for each year by the General State Finance Act. We can see those of recent years in the table of statutory interest rates. Interest can be defined as the amount of money that must be paid for the collection of a sum of money belonging to a third party, to which it must be returned for the period between collection and its return. They therefore constitute remuneration for the withdrawal of capital. This is the most fundamental concept of what constitutes an interest, and yet it is also one of the most limited because it refers only to the profit-making interests to which the owner of the money is entitled as fruit or income from capital. Knowledge of this value is of paramount importance as it influences many of the lending transactions that take place between individuals and businesses. In this article, we will analyze what is the legal interest of money and what legal interest rate of money is most commonly used in our daily lives. (a) payments made in the course of commercial transactions with consumers.

(b) interest relating to legislation on cheques, promissory notes and bills of exchange and the payment of damages, including payments made by insurance undertakings. (c) debts which are the subject of bankruptcy proceedings against the debtor subject to the provisions of its special legislation. Interest is the fruit or return on investment. In some cases, this is remuneration for the receipt of capital held by a third party to which it must be returned (interest against payment). In other cases, it is a contractual penalty for non-compliance with a payment obligation (default interest). This interest also applies to debts contracted by the tax authorities themselves to its taxpayers if the refund has not been made by 31 December. For the same reason, the Government itself determines the amount of default interest in the General Law on the State Budget. At present, interest on arrears until the approval of future general state budgets is 3.75%, the same rate as in the budgets of the previous legislature.

However, between the entry into force of Law 24/1984 of 29 June and the entry into force of the Finance Law for 1985, statutory interest on the currency was assimilated to the base or discount rate of the Bank of Spain, which was determined by the validity of the Decree of the Ministry of the Economy of 23 July 1977 (BOE No.