New rental legislation in Spain

New rental legislation in Spain

29 May 2019
door: Valery Brummelkamp
New rental legislation in Spain

From 5 March 2019 the rental legislation in Spain has been amended.

The minimum duration of the long-term lease has been changed from 3 to 5 years. This applies if the landlord is a natural person. If the landlord is a legal person, the minimum rental period is 7 years.

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.

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