New decree law of rent in Spain

28 marzo, 2019

The new royal decree law of urgent measures in the field of housing and rent introduces as a novelty a state index of reference on the rental of housing, links the increases to the IPC and allows that there may be bonuses, mainly in the Real Estate Tax (IBI) .

However, the royal decree – which will be published tomorrow in the Official State Gazette (BOE) – does not include any measure to regulate prices, as he has repeatedly claimed We can, since that requires a reform of the Law on Urban Leases (LAU).

As indicated in the press conference after the Council of Ministers, the Vice President of the Government, Carmen Calvo, these bonuses would be extended to local tax policies and would aim to promote those who rent the houses and have enough offer for rent, especially, given the problems that young people face.

The new royal decree, approved in the last Council of Ministers prior to the dissolution of the courts before the general elections of next April 28, establishes fiscal measures to stimulate the offer as enabling the lien on the IBI of the empty house, in the IBI the protected housing in rent or to eliminate the Tax of Transmissions in the rents of habitual residence.
In addition, to boost the supply of rental housing at an affordable price, the Executive has set itself the goal of creating, within 8 months, the state reference index of the rental price of housing and has established a preferential acquisition right (trial and retraction) by the Public Administrations in case of joint sale of a property with leases.

Likewise, in order to provide greater security and certainty to the tenant, the mandatory extension of 3 to 5 years is extended (or to 7 years, if the lessor is a legal entity), the tacit extension is extended (if neither party says anything after the 5 or 7 first years) from 1 to 3 years, and 2 months for the tenant and 4 months for the lessor the pre-warning period foreseen for not renewing the contract.

Rental contracts are also valid even if they are not registered in the Property Registry and the agreement between the parties is favored to make improvements during the term of the contract, allowing, in this case and in an agreed manner, the increase in the rent during the rest of the contract.

Several of the measures included in the decree are aimed at supporting the most vulnerable groups, especially those facing eviction situations.

In this sense, coordination with social services is improved to protect the evicted in cases of vulnerability, the day and time of the eviction must be indicated, the additional guarantees are limited to two months or the update of the IPC is limited. the rent during the term of the contract.

The possibility of subrogation, in case of the death of the tenant, in favor of vulnerable groups (minors, disabled, over 65) is also “protected”.

With respect to tourist housing, its exclusion from the LAU is improved so that it is specifically regulated by the Autonomous Communities and it is allowed that a majority of 3/5 of the communities of owners can limit this type of housing or assign greater common expenses.

In the press conference after the Council of Ministers, the Government has acknowledged that these measures are insufficient to deal with the problems and that, had they had budgets, housing policies have been carried out that go beyond the requirements of both this decree and in the previous one, which was knocked down in the Congress of Deputies with the vote against Podemos, PP, Ciudadanos and ERC.

Source: Diario de Ibiza