The economic situation is one of the most decisive variables in determining the legal interest. Each year, the new value of the money, which will serve as the basis for calculating the debt, is examined and determined. A simple formula for calculating statutory interest and getting the amount you have to pay or receive on a debt is as follows: The General Law on the State Budget fixes for each year both legal interest on money and default interest. If the interest rate to be paid in the event of default is not foreseeable, statutory interest on the money will be applied. 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. The legal monetary interest rate will remain at 3.00% until December 31, 2021. The default interest to be applied to commercial operations in the first half of 2022 is 8%. Abusively, the board considers default interest that requires an increase of more than two percentage points over the agreed interest rate for a personal loan. 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. One of the conditions for the use of legal interest is that it is applied in cases where no interest has been established for non-compliance or illegal collection.
The main cases of application of statutory interest are as follows: In order to pay default interest, the following conditions must be met: If a person does not fulfill his obligations to the tax authorities, i.e. does not pay his debts, he will be punished by the tax administration. The statutory interest serves as the basis for the calculation of the penalty and the subsequent calculation of the penalty that may be applicable to the taxpayer. In practice, the fixed legal interest rate can be very important when calculating large penalties, compensation, etc. We collect the data to process your request. If you agree, we will transfer your data to the lawyers, law firms or legal marketplaces we work with so that they can provide the best response to your request. The legal basis for this is your consent. We will not pass on your data in any other case, unless required by law. Default interest or default interest is generated when a person defaults on a monetary debt. The legal interest on money is the interest in case of default in: if the debtor is in arrears in the payment of a sum of money, economic loss results for the creditor. The way to repair this damage is to pay interest.
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. Under no circumstances may an interest rate resulting in an annual percentage rate of charge greater than 2.5 times the legal interest rate on money be applied to loans granted in the form of overdrafts within the meaning of this Article. Unlike default interest, which, as already mentioned, is compensation paid by the debtor to the creditor for non-payment of a debt. Default interest on mortgages for the acquisition of a habitual residence, secured by mortgages on the same dwelling, may not exceed three times the statutory interest on the money and may only accrue on the outstanding principal amount. As a general rule, the default interest percentage is the legal interest rate on money plus 25%, although it has sometimes exceeded the legal interest on money by more than 25%. The Supreme Court is of the opinion that default interest on personal loans without real security, agreed with consumers, is the agreed interest-bearing interest plus two points. Depending on the cases in which the debtor is in default, the following types of default interest can be distinguished: Although there is a relationship between the two types of interest, there is a significant difference.
Legal interest on money is the legal percentage used to calculate damages if the debtor does not pay or is in default. 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. 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. Since a judgment or order is made ordering the defendant-debtor to pay a sum of cash, an annual interest rate is payable in favour of the plaintiff-creditor of the amount of legal interest on the money plus 2 points plus interest determined by the parties or by law. That is, it is the interest we pay on the loans. If the obligation consists in the payment of a sum of money and the debtor is in default, damages, unless otherwise agreed, consist of the payment of the agreed interest and, failing agreement, the statutory interest. The legal monetary interest rate for 2022 is 3%. Legal interest is that which applies to late payments between individuals, in particular with companies, with the tax administration, with the public administration in general or vice versa. The first condition is that no default interest already agreed between the parties is due. This interest rate for procedural arrears applies to all areas of law, with the exception of the specialties fixed by law for the State Treasury.
This interest represents an amount payable to the creditor who has an outstanding debt, similar to compensation for damages. In 2022, the maximum legal interest rate is 8%. This rate applies to commercial late payments, i.e. those that occur between companies. The determination of legal interest is carried out annually and falls within the competence of the State, in accordance with the General Law on the State Budget. This implies that it is directly related to the economic situation that the country is going through at the moment. The debtor in default of payment of his debts after their maturity must, from the day after the due date, pay the interest agreed for this case or, if this is not possible, the statutory interest. Two types of delays must be distinguished: contracts signed between individuals and commercial or commercial contracts. Example: If we apply for a loan for the purchase of a vehicle and agree on an interest-bearing interest rate of 5%, the default interest is 7%. During the same period, default interest is 3.75% in accordance with Article 26.6 of Law 58/2003, of 17 December, on General Tax. In commercial commercial transactions, the express claim or notification of the creditor is not required, the delay begins automatically upon expiry of the payment period.
In general, default interest, also known as default interest, can be defined as the compensation that the debtor pays to the creditor for non-payment of a debt. That is, it is the interest that the debtor must pay for the fact that he is late. Legal interest rates are statutory interest rates that are not agreed between the creditor and the debtor. In this case, the delay is provided for by Law 3/2004, of 29 December, which provides for measures to combat late payment in commercial transactions. The maximum rates of this interest vary for general, tax and commercial debt. The latter are the ones with the most interest, founded in 2022 with a maximum of 8%. This is called a delay or delay in the situation of the debtor who does not do so when the payment deadline is reached. However, late payments do not prevent late compliance.
Legal interests have characteristics that distinguish them from other types of interests. The main ones are: . The board considers that the two-percentage-point surcharge provided for in Article 576 of the Code of Civil Procedure for the determination of interest in the event of non-procedural default is the most appropriate legal criterion for determining the amount of default interest on personal loans agreed with consumers, which does not mean that a high level of compensation is imposed on the consumer who does not comply with his obligations. This is the sum of the interest rate applied by the European Central Bank to its last refinancing operation, increased by eight percentage points, applied for six months following its fixing. The Ministry of the Economy, Industry and Competitiveness will be able to publish this interest rate every six months in the Official Journal and consult it in the table of interest rates for late payment of commercial transactions.