new rules for renting property in spain
Every rental property in Spain must now have an energy performance certificate (EPC). Landlords must provide tenants with the propertys Certificate of Occupancy (Cdula de habitabilidad) issued by the regional council. Make sure you fully understand the mortgage agreement you sign. 4) Malicious damage insurance. Airbnb in Spain: legal or illegal? - FBW Everything you need to know about Spain's new Housing Law in 2023, End of the CPI: new cap on the renewal of current rental contracts, How a rental tension zone will be recognised, Expansion of the definition of large property owners, New rental contracts and the cap to be applied depending on the landlord, The owner will be the one who has to pay the real estate agent, Contracts will not be able to exclude the application of the Housing Act, Boosting subsidised housing for rent at limited prices. For example, the landlord must carry out repairs that keep the home in a habitable condition. This sum will be included in your deposit later when the contract is sorted out. Once construction has finished, and before you sign the title deed, ask for proof from the seller that the construction has been finished in accordance with the description given in the plans. No surprise here, thats where all the jobs are concentrated, and the infrastructure is superb. 7 June 2022, Redaction Perhaps you own a Spanish property or holiday but don't get much of a chance to use it. The landlord is obliged by law to place the deposit in the corresponding Agencia Social de la Vivienda of the region. The Royal Institute of Chartered Surveyors (RICS) exists in Spain and there are residential chartered surveyors working across the peninsula and the islands. Rental start date Payment date Identification of the payment method used Barcelona, fighting against Airbnb since March 2017 Barcelona was the first city in the world to inflict a heavy fine to Airbnb, 600.000 in November 2016. 1. For example, as a long-term tenant, you can renew your contract for five years. If you terminate any housing rental contract early, you will likely owe rent for the agreed-upon rental term. This year, the 2% cap on contract renewals will continue, rising to 3% in 2024, and a new rental index will be created that will never be higher than the CPI from 2025. See the Living in Spain guide for brief information on taxation. Most regions in Spain have put legislation in place to regulate holiday rentals in their area by making it compulsory for property owners to obtain a licence prior to letting, and by establishing a ceiling on the number of licences available. Beware of listings that seem too good to be true. Should disputes between a landlord and tenant arise, there are a number of different mechanisms available where either party can seek resolution either through arbitration, mediation or legal action: You must ensure that you declare your rental income to the Spanish tax authorities (Agencia Tributaria) whether you are resident in Spain or not and regardless of the length of the let. Get your rental contract in writing, and be sure you fully read and understand the terms of the agreement. When you search online, keep in mind that apartments and houses in Spain are usually advertised with monthly rent and living space in square metres. You can visit any Mercantile Registry office or use the Land Registry website. Since 2013, all homeowners in Spain are required by law to have an energy efficiency certificate (Certificado de Eficiencia Energetica) prior to selling or leasing their properties. Si prefiere concertar directamente una cita en cualquiera de nuestras oficinas, puede llamar al (+34) 931 800 272 (nmero gratuito). You need an NIE for literally everything: Ifyou wanttorent/buy anapartmentor a house, ifyouapply for electricity, gas, water, TV, Internet, telephone, etc. Contracting utility service providers (i.e. At the moment, the costs will stay the same (18% for basic rate taxpayers and 28% for higher rate taxpayers) however, landlords and property investors will need to be wary of the new time frame. As a rule, your landlord or agent will hold your deposit in a separate account. This permit is only applicable to new property purchases or construction works in the areas referenced below from 1 January 2021. Ensure the developer has insurance covering damage caused by structural defects to the building. The FCDO and the British embassy will not be liable for any inaccuracies in this information. The new reference value also affects Wealth Tax, a tax payable on net wealth above a certain threshold (500,000 in Catalonia, with an additional allowance for your own home) although it is not strictly used as the taxable base. As the purchaser, you have the right to choose which notary you use. Some local authorities have placed a moratorium on the issuing of new licences as a means to control the number of holiday rentals in their city. Rental Contract 1.1 Legal Provisions The rental contract must contain the following items: Details of landlord and tenant Description of the property The contract term Amount of rent and payment terms Any other legal provisions that the parties agree When you renew the contract, the landlord may only increase the price by the ndice de garanta de competitividad (Spanish National Prices Index) click the link for the latest figure. Acepto los avisos legales y la poltica de privacidad. How Brexit will affect British property owners in Spain Most households use electricity (luz) rather than gas for home energy in Spain. Only a Gestor Administrativo with the GA kite mark is professionally qualified and certified to process paperwork directly with the Spanish administration. The laws vary according to property location and the duration of the rental agreement. Up until now the taxable base for both Property Transfer Tax (ITP, Impuesto de Transmisiones Patrimoniales) and Stamp Duty (AJD, Actos Jurdicos Documentados) in all real estate transactions has been the real value of the property (ie the property purchase price agreed between the buyer and seller) unless the tax authorities can prove that the market value is higher. Disagreements between landlords and tenants in Spain are typically handled in civil court. 2) Buildings Insurance. 5) Loss of income insurance. Not getting your deposit back is a common issue in Spain, so much so that many legal firms made it their business to represent tenants in court battling with their landlord for the deposit money. Seek independent legal advice prior to signing any contracts to make sure the information the company has given you is correct, there are no abusive clauses in the contract and you are fully aware of your rights. You can find a list of accredited translators and interpreters in Spain on the Spanish Ministry for Foreign Affairs website. Our guide to buying a property in Spain explains how to do it. However, if you specifically ask an agent to find you a property, you can expect to pay for this service. Airbnb sues New York City over restrictions on short-term rentals Use extreme caution if an estate agent, promoter or lawyer urges you to cut corners to save money or time. Student housing websites include: Before you put down a deposit to rent in Spain, you should check the state of the property. If for any reason you cannot keep up the mortgage repayments, you should speak to your bank immediately (before defaulting on repayments) to discuss the options available. Once you have correctly registered your property with the local authorities and obtained the necessary licence, you may wish to consider hiring a Spanish letting agent to assist with finding tenants, drawing up rental contracts and managing the property on your behalf. With an online search, you might find that quite a lot of advertised properties wont be available for rent when you contact the agent. Exemptions may apply in certain areas. If their response is unsatisfactory, you can take your complaint to the regional and then national bar associations. Meanwhile, a price index will be applied to large tenants, which will not exceed the new rental index created by each Autonomous Region. Airbnb is suing New York City over rules that the company says would make it much more difficult for people to turn their property into short-term rentals. He . Once youre on their books, theres more chance for them to do business with you. The consumer watchdog UCO (Organizacin de Consumidores y Usuarios), offers an sample rental contract here. If you have any concerns about your tax obligations (for example inheritance tax) you should seek the advice of an experienced professional tax advisor who can advise you independently. Before moving out, you should also request an inspection from your landlord or the property management. Director of Larran Nesbitt Lawyers. Make sure you have seen the following documents: On completion, the public deed should contain an accurate description of the property. Another of the substantial changes in the agreement is the declaration of a rental tension zone or so called "stressed areas". You can be a bit more proactive and search for a property to rent yourself. Wed like to set additional cookies to understand how you use GOV.UK, remember your settings and improve government services. Make sure that you pay your deposit by bank transfer, not cash. Rental contracts tend to be for one year, after which time they may be terminated or renewed. From 1 January 2021, UK nationals who wish to buy property in these areas, including those who fall within the scope of the Withdrawal Agreement, will be required to meet third country national (i.e. The Spanish tax authority, the Agencia Tributaria provides some information on property and tax on its website in English. As a rule, descriptions state whether a property is furnished or not. As Madrid is very popular with expats, you might want to try a local rental agency such as Moving2Madrid to help you navigate the competitive market. Should the bank not comply, the only remaining course of redress is to instruct a lawyer to take a civil case against the bank. This will include information such as whether the plot has any building restrictions, is in a green zone, includes a public footpath or if there are any current plans to build a motorway etc. Ask your agent about a finders fee beforehand. Renting a property in Spain How much is it to rent property in Spain? You have to pay expenses and taxes, even if you don't use it. Developers cannot force you to complete without this licence, receipt to prove all utility bills have been paid by the previous owner, if applicable, a certificate signed by the President of the Community of Property Owners (see Comunidad de Vecinos) stating that there are no outstanding debts. Furthermore, you should find out what is included in the rental for example, any furnishings, appliances, window coverings, and utility costs. There are deposit protection schemes set by the government in different parts of Spain, but most agents and landlords dont use them. Developers of off-plan properties are legally obliged to secure all deposits with a bank guarantee. In the case of a private build (the previous owner built their own house and decided to sell before 10 years had lapsed) you will need to request these details separately. The deposit, by law, must be equivalent to one months rent. When it comes to evictions, the landlord must file a lawsuit to force the tenant to leave the property. Airbnb sued New York City, Thursday, June 1, 2023, over an ordinance that the company says imposes arbitrary . Your landlord must return your deposit within one month of moving out or pay you interest. Information on legal requirements and advice for British nationals buying or renting property in Spain. That said, some direct enrollment programs leave it up to students to find a living space during their study program in Spain. If you are resident in Spain, you can apply to your local bar association for a legal aid solicitor. Madrideasy also offers complete apartments, shared housing, and even homestays. House Rules For Renters: The Top 15 Essential Rules - DoorLoop What New Landlord Rules Are Coming in 2022? 12 Things To Look Out For In addition, if you damage the home, make excessive noise, or carry out illegal activities on the property, you might be at risk of eviction. It is important to realize that you should only rent out your home in Spain if you own it. Developers cannot force you to complete without this licence. It should be read together with the how to buy property abroad guide. Beware of any. Tenants will still be responsible for testing alarms during the tenancy, but . 15 Basic House Rules To Include in Any Rental Agreement Do your homework: you should analyse and compare different products and services offered by lending companies. proximity to city centre, beach). Some well-known agencies that provide services throughout Spain are: You have many options for online rental portals in Spain. If you are not happy with the scheme you have been sold, the first step is to submit a complaint to the company responsible for your investment. Victor Sanz A new government decree regulating rentals in Spain went into effect on Wednesday, five days after being approved by the. This iseverything you need to know about Spain's new Housing Law in 2023. Local rental agencies in Barcelona and the surrounding region include: The costs of renting in Spains third-largest city are lower than in Madrid and Barcelona. How a rental tension zone will be recognised Expansion of the definition of large property owners New rental contracts and the cap to be applied depending on the landlord New rental housing in a tension zones The owner will be the one who has to pay the real estate agent Contracts will not be able to exclude the application of the Housing Act You may also need to pay annual or monthly fees for maintenance of communal areas and local charges, such as garbage collection. Renting out your property in Spain | Solicitors in Spain The reference value will be determined by the Cadastral Office annually, based on prices registered by the notaries and taking into account geographical area and the type of real estate. Currently, landlords can end a periodic lease with 60 days' notice, or a fixed-term lease with 30 days' notice, for any reason. Laws for renting out property in Spain. If you want to let your property to tourists on a short-term basis, you must ensure that you are doing so in accordance with Spanish law. Tax on your UK income if you live abroad: Rental income - GOV.UK However, these will often be targeted at tourists and may therefore be more expensive. The recent new real estate laws have introduced fiscal measures and new legal aspects concerning the duration of the contract or the eviction of the tenant, in order to protect the tenant but also to protect the owners. In that case, you could see rental prices of 650900 for a one-bedroom and 1,1001,685. However, bear in mind that this obligation only comes into force once the developer has planning permission, so you should ask to see this before making any payments. Short-term lets limited to 15% of homes. Stamp Duty (AJD, Actos Jurdicos Documentados) is due when buying new build properties and Property Transfer Tax (ITP, Impuesto de Transmisiones Patrimoniales) when buying a resale property. The Spanish Ombudsman is responsible for defending the fundamental rights and civil liberties of citizens by monitoring the activity of public authorities. Before entering into a tenancy agreement as a landlord (arrendador) or tenant (arrendatario) in Spain, make sure you know your rights and obligations as they can differ from those in the UK. Subletting without your landlords permission could violate the terms of your rental contract. Private tenancy agreements are governed by national rental laws (Ley 29/1994, de 24 de noviembre, de Arrendamientos Urbanos and Real Decreto-Ley 7/2019, de 1 de marzo), which set out and protect the rights and obligations of both the landlord (arrendador) and the tenant (arrendatario). The new law will permit authorities to regulate all rents in areas designated as 'stressed.' The other major change are the fees payable to real estate agents. A three-bedroom is 1,100-1,500. In some areas, it is subject to the length of stay or whether the property is being rented as a whole or individual rooms. By law, the deposit amounts to one months rent. 16 June 2022. You should also check that your lawyer has professional indemnity insurance and do not sign any papers or hand over any money until you have taken independent legal advice. Again, it is wise to make contact using Burofax and attach copies of all relevant documents, including a copy of the bank guarantee, a copy of the complaint submitted to the developer, a copy of the developers response (if any) and copies of any documents which indicate that the developer has not complied with the contract. Here are some quick tips to keep in mind when renting in Spain: Expatica helps make your expat journey the experience you've always wanted. The registration should also provide details of the developers insurance against structural and other defects in the construction. Its also a good idea to go for an agency thats registered with an association such as MLS, ACI, or AIM. In such cases, the rental will need to be previously . This information is provided as a general guide and is based upon information provided to the embassy by the relevant local authorities and may be subject to change at any time with little or no notice.