A Power of Attorney (POA) refers to a legal document that provides legal authorisation to a designated person – the attorney, it conveys the power to act on behalf of another person – the donor. A Power of Attorney is closely associated with assisting a person to deal with their own affairs. However, this is not the only application.
A European power of attorney is a useful legal instrument to help a British national who has assets and/or owns a business that is based in Europe or has business dealings in Europe. It grants a chosen person the authority to act on your behalf in various business-related transactions, negotiations, and legal matters. Most countries in the EU have the same terms within a Power of Attorney. Your appointed representative can act on your behalf in various transactions, such as signing contracts, agreements, and other business documents, enabling all your commercial transactions to continue even if you are not physically present in Europe.
Your attorney can access and manage your European bank accounts, including making withdrawals, deposits, and transfers on your instruction. This is especially beneficial if you need to manage financial transactions for your business from a distance or if any unexpected issue arises that needs to be addressed immediately. Your attorney can also represent you in negotiations with business partners, suppliers, customers, or government authorities. As well as enter into agreements, make decisions, and resolve disputes on your behalf.
In the event of a legal disputes or litigation related to your business interests in Europe arising your attorney can hire lawyers to represent you in court and also make decisions about legal strategies if you have extended that power in the Power of Attorney. This can be crucial in bringing a dispute to a swift and amicable conclusion agreed upon by both sides.
Gonzalo Butori, a partner, pointed out “there are two types of Power of Attorney that work in most of Europe, a General Power of Attorney and a Special Power of Attorney. The General Power of Attorney gives the holder a considerable amount of control over all the grantor’s financial affairs and all other aspects of their life. This is unlikely to be the best option for managing business affairs”. Gonzalo commented “the Special Power of Attorney is the most suitable as it is will be drafted to permit the attorney to carry out clearly defined tasks on behalf of the grantor. The limitations of the Special Power of Attorney remain within the grantor’s control.”
British nationals purchasing, selling or leasing a property in Europe also can commission a power of attorney to enable their real estate purchases and other matters to be dealt with in their absence.
Another most important aspect that can be managed by an attorney the matters relating to tax, ensuring that your business complies with European tax regulations and the other legal requirements, such as filing tax returns and paying taxes in a timely manner. Your attorney, if required, can also handle day-to-day administrative tasks, such as managing employees and the maintenance of your business premises.
As your attorney will be given considerable control and authority over an individual’s overseas business affairs, whoever is selected as an attorney must be careful chosen, you will be entrusting a third party to manage important commercial issues that will impact on your business. Often a lawyer who has capacity in the jurisdiction of the country where your business interests lie is selected; therefore, when issues such as employment law or any other aspects of commercial law arise you can have the confidence of knowing that your attorney will be able to manage all such issues.
Another benefit of a Power of Attorney to assist with your business and other assets overseas is that your estate will be able to pass to your beneficiaries with far less legal issues.
Giambrone & Partners’ expert commercial lawyers point out that once your Power of Attorney has been drafted it will almost certainly need to be notarised in the country to which it will be applied. Your Power of Attorney must be drafted by a legal professional who will explain all the legal implications of the powers you are granting to your attorney.