Law on renting out property in Spain
If you have a rented property in Spain or are thinking of doing so in the coming months you will be interested to know what the regulations are. In March 2019, new regulations were introduced and some points of the law that you should know about were updated.
News in the law of rentals in Spain
- Duration of the contract: The duration of the lease is extended from 3 to 5 years. If the owner of the property is a company the duration of the contract is 7 years.
- Extensions: Until recently when a contract ended and neither party communicated its intention not to renew it, it was automatically extended by one year. From now on, if this happens, the contract will be automatically extended for 3 years.
- If you buy a property that is rented, you must respect the contract until it ends.
- Termination of the contract: When the owner wants to take back the property to live in it or give it to a relative, he must reflect this in the initial rental contract.
In order to execute this option he must notify the tenants at least 4 months in advance. In the case of the tenants, if they want to leave the property before the end of the contract, they must give 2 months’ notice.
- Property Tax: There are new developments in the annual tax that must be paid by the owners of a property to their local council. The town halls may increase the amount of the tax for all those properties that are vacant.
- The communities of neighbors will have the capacity to prohibit the tourist flats in the buildings if three fifths of the owners decide it.
Another issue that is pending resolution is the creation of a statewide system of reference indices for rental prices. In case of doubts, it is always advisable to receive legal advice to know how to properly deal with everything related to property rentals in Spain.