New Regulation for Rentals in Spain

10 May 2019 | Tags: , ,

From 6th March, the Spanish Government has introduced another new regulation for tenancy agreements. This new regulation only affects properties used for habitual residence and does not affect commercial properties or vacational residences.

What do you need to know?

  • The mandatory extension period for rental contracts is five years if the owner is an individual. After this period, the agreement can be extended for another three years. If the owner is a company, the mandatory term will be seven years and can be extended for another three years. The tenant can notify their wish not to extend the contract with one month’s notice.
  • The increase in annual rent will be linked to the Official Prices Index during the duration of the contract.
  • Additional guarantees are limited to two months of rent payable upfront.
  • Once the mandatory period has elapsed, in the event that the landlord or the tenant notifies their intent not to renew the contract, the landlord must notify the tenant four months in advance. If the tenant wants to leave, he must provide two month’s notice.
  • The power to recover the owner’s home and to resolve the contract in advance must be expressly included in the contract – you need to justify that you require the property for your habitual residence, or your children or spouse and family circumstances have changed.
  • 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 landlord and tenant, improvements to the house can be made without signing a new contract.
  • The costs of real estate management and formalization of the contract will be borne by the owner, provided that the owner is a company.

Contact us at My Lawyer in Spain for help with any rental agreements, or advice.

My Lawyer in Spain

Written by:
My Lawyer in Spain

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