More protection for tenants and measures to lower rents

Automatic summary, not yet reviewed

1. Residential lease contracts are mandatorily extended to five years, or seven if the landlord is a company. If neither party asks not to renew, the contract runs three more years.
2. The landlord cannot ask for additional guarantees worth more than two months' rent on top of the deposit. Also, if the landlord is a company, the landlord pays the management costs and the cost of formalizing the contract.
3. Tourist-use homes are excluded from the Urban Leases Law, even if marketed through any channel, and the applicable tourism rules apply instead.
4. Homeowners' associations must fund their reserve fund with at least 10% of their last ordinary budget, and may use it for accessibility works. These works are mandatory when public aid covers 75% of the cost.
5. In evictions for non-payment, if social services find vulnerability, the judge suspends the process for up to one month, or two if the plaintiff is a company, so protection measures can be adopted.
6. City councils may grant a property tax (IBIIBI Impuesto sobre Bienes Inmuebles: the property tax paid to Spanish city councils for owning a home or premises.) rebate of up to 95% for homes rented at affordable rates and may add a surcharge on permanently vacant residential properties. Residential leases are exempt from the transfer tax, and the Ministry of Public Works must boost the supply of rental housing.

Who it affects

• Landlords renting out their homes: They must accept longer extensions, cannot ask for guarantees above two months' rent, and pay management costs if they are a company.
• Tenants in their main residence: They gain stability, with contracts extended to five or seven years, plus three more if nobody asks not to renew.
• Homeowners' associations: They must raise the reserve fund to 10% of the budget and face accessibility works when public aid covers 75%.
• Vulnerable households facing eviction: The process is suspended for up to one month, or two if the plaintiff is a company, so social services can act.
• City councils: They may grant a property tax rebate of up to 95% for affordable rental homes and surcharge permanently vacant apartments.

Words worth knowing

Prórroga obligatoria (mandatory extension)

Extra period during which the tenant can stay in the home even after the contract ends, unless there is an agreement to remove them.

Prórroga tácita (tacit extension)

If nobody says anything when the contract ends, it is automatically renewed.

Fianza (deposit)

Money the tenant gives the landlord at the start of the contract as a guarantee, returned at the end if there are no debts.

IBI

Impuesto sobre Bienes Inmuebles: the property tax paid to Spanish city councils for owning a home or premises.

Lanzamiento (eviction enforcement)

The act of removing a person from their home after an eviction ruling.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries