The new law regulating rentals in Spain

The law firm Marin&Pasalodos wants to inform you on the changes brought by the new decree of property renting, as many of our foreign clients have shown massive interest in moving to Barcelona. The appeal to live in Barcelona is as powerful as ever, not just because of its evident lifestyle advantages, but also thanks to its expanding reputation as a major nerve center for tech industries and innovative start-ups. Let’s take a look at the rental scene, as it tries to meet demand from growing numbers of businesspersons choosing to settle in the Catalan capital, Barcelona, or from individuals that simply decide to relocate and live in the city of Gaudi.In March 2019, the new law concerning property renting came into force in Spain. We will point out the key aspects of Real-Decreto 7/2019:

Extended contracts. The minimum length of a contract has been extended from three to five years (or seven if the landlord is a create company SSL Spainbusiness). To provide greater stability for landlords, the period of tacit renewal has been extended from one to three years. After the mandatory renewal period, landlords must give four months’ notice to end the contract and tenants must give two. Previously, owners could give two months’ notice and tenants one.
Price benchmark system. The decree introduces a state benchmark index for rental prices that will be used to follow changes in the market and help determine whether an asking price is adjusted to market realities. This index will provide the average price in any given part of Spain, and undergo annual reviews. The government has given itself eight months to produce the first figures.
Limit on property costs. In addition to a one-month deposit, property owners can only ask a tenant for additional guarantees equivalent to two months of rent.
More security for tenants. The decree equally recognizes contracts registered with the Property Registry and those that have not been registered. In other words, if someone buys a property that is already rented out, they must respect the tenant’s lease agreement.

When eviction process will be pushed back?

Evictions. All eviction processes will go through the social services first to determine whether a tenant is in a vulnerable situation. If so, the eviction process will be pushed back one month (three if the owner is a business) to help the tenant find a new place to stay. Judges must also communicate the exact date and time that the eviction will take place.
Vacation rentals. The decree says that a building’s apartment owners may collectively agree to place limits on the use of units for the purposes of tourist accommodation. The measure comes over the growing public debate over the impact of online services such as Airbnb on Barcelona city center and on the price of housing.
The main changes will only apply to new lease agreements signed from the 6th of March. Earlier ones will continue to be covered by the previous Spanish legislation, although if both parties agree and there is no legal impediment, older contracts may be upgraded to reflect the new situation.

If you want to find out more information about property renting in Spain, or if you have any questions or doubts related to any legal area, don’t hesitate to contact Barcelona lawyers of the Marin&Pasalodos Spanish law office. We are specialized in commercial law, civil law, administrative law and criminal law, and will offer full professional and emotional commitment in order to obtain a satisfactory result for our clients! You can reach us at the phone number (0034) 932006766, or by e-mailing us at [email protected] Thank you for trusting in us!

by Marin Pasalodos

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