New Decree regulating tourist rentals in Spain overturned by Congress

The Royal Decree-law 21/2018, of 14 December 2018, of urgent measures in the matter of housing and rent was revoked yesterday, 22 January 2019, by the Congress of Deputies. 243 deputies out of 350 voted against it.

So, questions again:

What  guarantee is required in a rental agreement?

There is no limit to the guarantees that the owner can request from the tenant.  In the decree that the Government has overturned, this guarantee was limited to a maximum of two months.

What extension is mandatory for home rental contracts?

It depends when the contract was signed.  If the contract was signed during the 35 days that the decree of 14 December 2018 has been in force, the extension was of  five years in the case of the owner being an individual and seven years in the case of the owner being a company that owns numerous homes.  Former regulations extended the period to just three years.

Are there limits to price increases?

No, there are not.

What happens with tourist apartments and permission by Community of owners?

Until yesterday, it was enough that three fifths of the owners of the community rejected the use of a house as tourist accommodation for this to be denied permission. As of today, unanimity is again demanded in the agreement, which gives more facilities to owners of tourist homes. The December 2018 decree also imposed on homeowners who operated in the tourism market to pay up to 20% of community expenses. Now we return to the previous model, whereby these properties in commercial exploitation pay the same as any other property.

Is the rental market definitely subject to the law prior to 14 December 2018?

Although the new decree has been overturned by Congress, the government seems determined to implement new measures in the rental market. So…let´s see!

María Luisa de Castro

DIRECTOR

María founded CostaLuz Lawyers in 2006 and is the Firm’s Director. María is registered Lawyer number 2745 of the Cadiz Bar Association and is licensed to practice in all areas of law throughout Spain. Working closely with her team, María has developed the firm into one of the most highly regarded and trusted Spanish Law Firms acting for English speaking clients with legal problems in Spain.

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