Latest news about housing leases: How it affects you?
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 favor 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.
New measures about housing leases
The measures included in this new Law in relation to leases are the following:
- 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).
- 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, in the event that 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.
- 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.
- 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).
- Improvement and clarification of the remission of tourism rental housing contracts to the sectorial tourism regulations that may be applicable.
- ITP. From now on, the rentals of housing for stable and permanent use are exempt from taxing by ITP.
- IBI. 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. From GMTAXCONSULTANCY we can help you resolve any doubt and to comply your obligations as a or to exercise your rights as a tenant.