Key legal changes for 2025: justice, investments, and corporate compliance

On December 12, 2024, the Court of Justice of the European Union (CJEU) issued an official ruling that could have significant implications for mortgages linked to the Reference Index of Mortgage Loans (IRPH). The ruling states that clauses related to IRPH could be deemed null and void if banks did not provide sufficient information to their customers.

Banks will be required to provide a full definition of the IRPH and compare it to other market interest rates, such as Euribor, to ensure consumers understand the economic implications of their mortgages. A lack of transparency could render the clause abusive, potentially leading to significant financial refunds for the financial institutions.

On January 3, 2025, the Official State Gazette published Organic Law 1/2025, which introduces Alternative Dispute Resolution Methods (MASC) into the Spanish judicial system. According to this regulation, attempting to resolve conflicts through a MASC will be mandatory before initiating judicial proceedings, except in certain exceptional cases. Courts may impose procedural costs on parties who unjustifiably refuse to participate in such methods.

The law also stipulates that parties must provide evidence of prior negotiation, and if no agreement is reached, they will have a one-year deadline to file a lawsuit. The goal of this reform is to promote more collaborative and efficient conflict resolution, easing the burden on courts and providing parties with alternatives to resolve disputes.

In January 2025, Organic Law 1/2025 amended the "Golden Visa" regime in Spain by repealing Article 63 bis of Law 14/2013. This modification, which will take effect on April 3, 2025, suspends the option of obtaining residency through the purchase of real estate valued over €500,000. However, applications submitted before this date will follow the previous regime.

Residence permits already granted will remain valid and can be renewed according to the original rules. This reform does not affect other forms of investment, such as the purchase of shares or stakes, or investment in public debt or projects of general interest, which will remain in effect. The repeal aims to regulate the real estate market and prevent speculative effects.

On October 29, 2024, the Independent Authority for Whistleblower Protection (AAI) was established in Spain, following Law 2/2023 and the European directive on the protection of whistleblowers. This authority aims to ensure the safety and protection of individuals who report regulatory violations or acts of corruption, both in the public and private sectors.

The AAI is an autonomous body, independent from the Government and any other entity, with key functions such as managing a secure channel for receiving reports, adopting protective measures for whistleblowers, and processing sanctioning procedures. Despite its creation, companies with more than 50 employees remain responsible for setting up internal reporting systems.
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