Rent, mortgage and loan relief measures during the COVID-19 crisis

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1. Evictions and removals are suspended for households facing sudden social or economic vulnerability due to COVID-19 that have no housing alternative, for up to six months.
2. Ordinary-residence rental contracts can be extraordinarily extended by up to six more months, on the same terms, if the extension period ends within the two months after the state of alarm ends.
3. Tenants in economic vulnerability can request a deferral of rent payments. If the landlord is a large holder (more than ten properties) or a company, the deferral is automatic: either a 50% rent reduction or a payment deferral of up to four months, repaid in installments over at least three years with no interest.
4. A State-backed guarantee line, through the ICO, lets banks finance rent payments for vulnerable households, up to six monthly payments, with no costs or interest for the applicant. A new aid program grants up to €900 per month.
5. The mortgage payment holiday is extended to three months for self-employed people and professionals with premises linked to their business, and for landlords who stop receiving rent. Payments on non-mortgage loans and credit (including consumer credit) of vulnerable individuals are also suspended for three months, with no interest during the suspension.
6. While the state of alarm lasts, electricity, petroleum-derived products, natural gas and water cannot be cut off at primary residences for non-payment, except for safety reasons. The electricity social bonus is also extended to self-employed people who stopped working or lost 75% of their billing.
7. Domestic workers left without activity due to COVID-19 are entitled to an extraordinary subsidy of 70% of their contribution base, capped at the minimum wage. Temporary contracts of at least two months ending during the state of alarm give access to an exceptional subsidy of 80% of the monthly IPREMIPREM Indicador Público de Renta de Efectos Múltiples: a public income index used in Spain to determine whether someone has enough income to qualify for aid. for one month.
8. Consumers can terminate, without penalty and within 14 days, contracts that became impossible to perform because of the state of alarm, and for canceled package trips they can choose between a one-year voucher or a refund. Commercial communications by online gambling operators are also restricted during the state of alarm.

Who it affects

• Tenants of their primary residence facing economic hardship from COVID-19: They can defer or reduce rent, apply for aid and State guarantees, and are protected against evictions and contract extensions.
• People with a mortgage or loans, and self-employed people with business premises: They can suspend mortgage and non-mortgage loan payments for three months if they meet the vulnerability requirements.
• Domestic workers and workers on temporary contracts: They can receive extraordinary subsidies for loss of activity or contract termination.
• Self-employed people and businesses: They can defer Social Security contributions and debts at 0.5% interest, make their electricity and gas contracts more flexible, and suspend payment of utility bills.
• Consumers: They can terminate contracts that cannot be performed and choose between a voucher or a refund for canceled trips.

Words worth knowing

IPREM

Indicador Público de Renta de Efectos Múltiples: a public income index used in Spain to determine whether someone has enough income to qualify for aid.

Moratoria

An authorized deferral of debt payments for a period of time, without counting as a default.

Lanzamiento

The physical removal of a person from a home following a court-ordered eviction.

Gran tenedor

A large holder: a person or entity owning more than ten urban properties (excluding garages and storage rooms) or more than 1,500 square meters built.

Bono social

A discount on electricity bills for vulnerable consumers, partly funded by the electricity system.

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