18 Jan Recent Changes to Spanish Real Estate Law for 2019
As we at Casamona International move into the new year, we reflect on the past one. Now we are informing our customers about new Real Estate law changes that have been implemented for 2019.
Here in Barcelona, 2018 was a tumultuous year in terms of real estate law and the world. There were certainly highs as national property prices rose an average of 7% from the previous year. We are expecting this to continue through into 2019. This marks continued progress for the market which has grown 40% since 2013. Catalonia’s political fragility is reflected in the market stability too. For example, large companies are moving from the city to Madrid.
Furthermore, nationally the supply has not risen by the same margins and prices are consequently rising. Potential tenants will find it more difficult to find affordable long-term accommodation. Consequently, new measures are being introduced for this new year to protect renters.
Changes to Real Estate Law
The first of these legal changes increases the minimum period a tenant can stay in a property for. Up until now, this had been fixed at 3 years. However, the new law stipulates that this minimum period will now be 5 years for all new contracts. If the landlord of a property is a company, then this will be even higher at 7 years.
Also, automatic contract extensions have also changed. If neither the tenant nor the owner cancels the contract by the end date, the contract automatically prolonged by 3 years. The previous extension period was just 1 year.
Also, measures have been taken to protect the tenant’s deposit. The government has decided to limit the amount to two months’ rent. An exception is when the contract is long term. This is aimed at reducing the expense of being a renter. It will especially help those just starting on the property ladder.
Another important law change regards the explosion of so-called ‘tourist apartments’. In large Spanish cities such as Barcelona, the high number of these apartments is particularly controversial. Short-term tourist renters can avoid this in the future. Only the residents of a building or community need to vote to block such leases. Previously, these leases are terminated by a unanimous municipal resolution. However, this number has been lowered so that now only a 75% majority not in favor is required.
If you have any questions regarding how the changes could affect you, please don’t hesitate to contact us.