On March 5, was published in the BOE the Royal Decree-Law 7/2019 of March 1, Measures on Housing and Rent. It again modifies the Law on Urban Leases, the Law on Horizontal Property and the Consolidated Text of the Law on the Tax on Assets Transfer and Documented Legal Acts, among other legal bodies.
These modifications are listed below by our experts in Legal Consulting.
Measures on Housing and Rent
Modifications to the Law on Urban Leases.
The following amendments apply to leases entered into on or after March 6, 2019.
- The mandatory extension period (at the will of the tenant) for housing leases is extended. It goes from three to five years, or seven years if the lessor is a legal entity.
- At the end of the mandatory extension period mentioned in the previous point. If neither of the parties declares to the other that it does not wish to renew the contract, the tacit extension period is extended from one to three years. In addition, the period of notice is increased from one to four months (for the landlord) and to two months for the tenant.
- For residential leases, the amount that the landlord may require as an additional guarantee to the deposit is limited. It may not exceed two monthly instalments, plus the monthly deposit.
- The updating of the rent must be obligatorily indexed to the CPI.
- Contracts will be effective against third parties, even when they are not registered in the Land Registry.
- For the recovery of the dwelling due to the need of the lessor, the causes must be expressly stated in the rental contract.
Amendments to the Law on Horizontal Property
It includes the possibility for owners to limit or condition the exercise of tourist rental activity in the community. This will require the favorable vote of three fifths of the total number of owners and participation fees. Even when such a limitation implies a modification of the statutes. In other words, unanimity will not be required for this type of agreement.
Amendments to the Law on Transfer Tax and Stamp Duty
Exemption from the payment of the tax is established for leases of housing for stable use.
The date of entry into force of these modifications is one day after publication in the BOE, therefore 6 March 2019.
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