On 18 December, the Official State Gazette published Royal Decree-Law 21/2018, of 14 December, on urgent measures in the field of Residential and Rental Property, which modifies the Law on Urban Leases, the Law on Horizontal Property and the Consolidated Text of the Law on the Tax on Capital Transfers and Documented Legal Acts.
Among other legal bodies, as listed below:
Modifications in Residential and Rental Matters
Modifications to the Law on Urban Leases.
The following amendments apply to leases entered into on or after December 19, 2018.
- The mandatory extension period (at the will of the tenant) is extended for housing leases. It increases from three to five years, or to 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.
- It establishes the obligation that the expenses of real estate management, in rent of housing, are assumed by the lessor, when this one is a legal person.
- For the renting of housing, the amount that the landlord can demand as an additional guarantee to the deposit is limited. That may not exceed two monthly payments, plus the monthly deposit.
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.
If you would like to know more about how these modifications may affect your particular case, please do not hesitate to contact us.
Legal Consulting Dept.