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A summary of the new Royal Decree of 6 March 2019 on housing rentals:

Costa Luz Lawyers > Property Rental  > A summary of the new Royal Decree of 6 March 2019 on housing rentals:

A summary of the new Royal Decree of 6 March 2019 on housing rentals:

Regarding contracts:

 

  • The period of mandatory extension of rental contracts change from three (3) to five (5) years, and the tacit extension is changed from one (1) to three (3) years for natural persons in the case that the landlord or the tenant does not express his will not to renew it.
  • In the event that the landlord is a legal entity, it will be seven (7) years of mandatory contract and three (3) years for tacit extensions.
  • The increase in annual rent will be linked to the CPI for the duration of the contract (5 years).
  • It is limited to two (2) months of rent the additional guarantees to the deposit (one month), except in the case of long-term contracts.
  • To be able to terminate the contract, once the expiration date of the contract or any of its extensions has arrived, and after at least 5 years if the landlord is an individual, or 7 years if it is a legal entity, the landlord must inform the tenant, his willingness not to renew it, at least four (4) months in advance. If the tenant wants to leave, he must give two (2) months notice.
  • Otherwise, the contract will be mandatory for annual periods to a maximum of three more years, unless the tenant manifests the landlord one month before the date of termination of any of the annuities, his willingness not to renew the contract.
  • The faculty to recover the home by the owner and to terminate the contract in advance must be expressly included in the contract – as you need it for your usual home, your children or spouse if family circumstances change.
  • The buyer of a rented property must respect the current contract, whether or not it is registered in the Property Registry.
  • If there is an agreement between the owner and the tenant, improvements to the house can be made without signing a new contract.
  • Costs of real estate management and formalization of the contract will be borne by the landlord, provided it is a legal entity.
  • As a novelty, a state Reference Index for housing rental is defined, which, according to the Ministry of Public Works, will serve at an informative level so that the Autonomous Communities can define their own indexes and apply them for their housing policies, focused on tax incentives. This index will be established within a period of eight months and published by the Ministry of Development. It will have information of all the estates: Tax Agency, registrars, notaries, registered bonds, real estate portals, will have an annual temporality and will detail the prices by cities, districts and neighbourhoods.

 

Regarding Tax benefits:

 

  • The City Councils are authorized to establish a bonus of up to 95% in the IBI (Local Property Tax) quota for housing subject to rent at a limited price. That is, it is a bonus for the individual who has an official housing and decides to rent it, but at a price limited by the City or the corresponding CCAA.
  • Exemption of the Transfer Tax in the subscription of housing leases for stable and permanent use in any region (comunidad autónnoma)

 

The tourist housing is not regulated by the Urban Rental Act, so the Law on horizontal property is reformed for:

 

  • By qualified majority of three fifths of the owners, the communities of owners can adopt agreements that limit or condition the exercise of the activity of the tourist rental of a house, establishing the possibility of agreeing a greater contribution of these to the payment of the general expenses (up to 20% more).

On the part of the evictions, it supposes a reform of the Law of Civil Procedure:

 

  • Once the judge orders the eviction of the tenant, he must notify the local social services so that they can act in case of vulnerability by the tenant and until a housing alternative is sought. The eviction will be interrupted for a period of one (1) month if the owner is an individual and will be paralyzed for a period of three (3) months if it is a legal entity.

 

  • Once the judge orders the demand for eviction, he must notify the social services ex officio with the exact date and time of the eviction.

 

  • On the other hand, and regarding the rents of vulnerable households, persons with disabilities, minors or those over 65 years of age, in case of death of the contract holder, the lease will be subrogated to the rest of the tenants of the living place.

 

YOU CAN CONTACT US FOR ANY QUERY ON RENTAL LAW at mailto:web@costaluzlawyers.es

 

You can find below a chart of applicable Law to your rental, depending on date of signature of the contract:

 

 

DATE of RENTAL CONTRACTAPPLICABLE DECREE
Between  July, 1st, 1964 and May, 9th, 1985

 

Decreto 4104/1964 de 24 de diciembre, Texto refundido LAU (SP/LEG/1349)

Disposición Transitoria Segunda LAU 29/94 (SP/LEG/1539)

 

 

 

 

Between May 9th, 1985 and  January 1st, 1995Decreto 4104/1964 de 24 de diciembre, por el que se aprueba el Texto refundido LAU  (SP/LEG/1349)

Real Decreto-Ley 2/1985 de 30 de abril, sobre Medidas de Política Económica (SP/LEG/1993)

Disposición Transitoria Primera, apartado 1 LAU 29/94(SP/LEG/1539)

Between January 1st, 1995 and June 6th, 2013 Ley 29/94 de 24 de noviembre, de arrendamientos Urbanos (SP/LEG/1539)
Between June 6th, 2013 and December 19th, 2018Ley 29/94 de 24 de noviembre, de arrendamientos Urbanos modificada por Ley 4/2013, de medidas de flexibilización y fomento del mercado del alquiler de viviendas (SP/LEG/1539)
Between December 19th, 2018 and January 22nd, 2019

 

Ley 29/94 de 24 de noviembre, de arrendamientos Urbanos modificada por R.D.Ley 21/2018, de 14 de diciembre (SP/LEG/1539)
Between January, 22nd 2019 and  March, 6th, 2019

 

Ley 29/94 de 24 de noviembre, de arrendamientos Urbanos modificada por Ley 4/2013, de medidas de flexibilización y fomento del mercado del alquiler de viviendas (SP/LEG/1539)

 

From March 6th on

 

 

 

 

Ley 29/94 de 24 de noviembre, de arrendamientos Urbanos modificada por R.D.Ley 7/2019, de 1 de marzo (SP/LEG/1539)

 

 

 

 

 

 

 

 

 

YOU CAN CONTACT US FOR ANY QUERY ON RENTAL LAW at mailto:web@costaluzlawyers.es

 

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