This means that the contract will be compulsorily extended to five years, unless either the tenant or the landlord terminates the contract in time. In addition, the notice period for both lessee and lessor has been adjusted to 2 and 4 months respectively. If the term of 5 years or 7 years has been reached, the contract will be extended annually with a maximum of 3 years.
Unless the tenant indicates one month before the end of the year that he wishes to terminate. The landlord, if a natural person, can terminate the contract in case he, his spouse or first degree relatives need the accommodation for urgent personal use. Urgent personal use can occur in case of divorce.
Rental price adjustment
In addition, the rent may only be adjusted with the index figure (called CPI in the Netherlands) published by the Spanish government.
Additional security deposit
An additional guarantee of more than two monthly instalments may not be agreed in residential leases with a duration of up to five years if the landlord is a natural person or up to seven years if the landlord is a legal person.
Starting from 5 March 2019
This reform shall apply only to contracts signed after that date. Contracts signed before that date remain subject to the provisions of the legal regime that applied to them. However, existing contracts may be adapted to the legal regime set out in this Royal Decree if the parties so agree.
Keep an eye on our website for all updates! Are you interested in a property in Andalusia? Or do you have a home that you would like to sell or rent out? Please feel free to contact us.
Are you planning to buy a house in the province of Málaga and would you like more information? We are happy to help you: consult our guide to buying a property in Spain.