what is the maximum length of time you are allowed to stay in Spain on

DB1

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holiday when going from the UK? My in-laws go over every winter and usually stay for 4 months. However, some friends of ours who live there say that the length of time you are legally allowed to stay on holiday has been reduced to 90 days. Is this true? What are the penalties for staying too long?
Please do not direct me to internet links as I have looked at these and cannot make head not tail of them.
So are you saying that you can stay as long as you like but your cars cannot?
 
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