New Spanish Housing Law : Leases

On December 14, Law 21/2018 was approved and effective from December 19, 2018, of urgent measures in the area of leases that includes a set of urgent measures to improve access to housing and favour affordable rent.

The new law includes modifications in five laws: the Urban Leasing Law, the Horizontal Property Law, the Civil Procedure Law, the Consolidated Text of the Local Treasury Regulatory Law and the Consolidated Text of the Transfer Tax Law.

Thanks to the new legislation, landlords and tenants will now find it easier to negotiate improvements to the property before the lease expires.

New measures about Spanish housing law

The measures included in this new law about leases are the following:

Initial rental period

The period of mandatory extension of lease agreements for leases from 3 to 5 years is extended (or 7 years if the lessor is a legal entity).

Renewal period

The tacit extension period is extended from 1 to 3 years. This is the time period by which the contract is extended after the mandatory extension period has elapsed if the lessor or the lessee does not express its wish not to renew it.


Additional guarantees are limited to the deposit, up to a maximum of two months, except in the case of long-term contracts.

Property improvements

It facilitates the adoption of agreements between the owner and the tenant for the renovation or improvement of the house in the course of a lease agreement.

Formalization costs

It is established that the costs of real estate management and formalization of the contract will be borne by the lessor when this is a legal entity (a company).

Short-term rentals

Improvement and clarification of the remission of tourism rental housing contracts to the sectorial tourism regulations that may be applicable.


From now on, the rentals of housing for stable and permanent use are exempt from tax by ITP.


It also establishes that the municipalities that so decide may set a bonus on the IBI of up to 95% for homes that are rented with limited income by a legal rule.

We are at your disposal to comment, and/or clarify any doubts about the application of this new regulation and the rights and obligations that it entails. GM Tax Consultancy can help you resolve any doubt and to comply with your obligations. Contact our expert lawyers in Barcelona by email or phone.

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