Problems with rent or mortgage payments during the State of Alarm in SPAIN

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WE want to highlight the measures that have been taken in relation to lettings contract and mortgages in Spain, in the coronavirus crisis:

Leases in Spain, COVID-19; Suspension of eviction procedures
It is agreed that once the suspension of the procedural deadlines and the state of alarm ends, in those cases where the tenant is in a situation of social or economic vulnerability caused as a result of the COVID-19 effects, they may request the suspension of the eviction procedure, which will take place as per the decision of the social services, and always for a maximum period of six months from the RDL 8/2020, that is, until October 2, 2020.

This will apply to those who are unemployed, in an ERTE, etc. and are in a situation of vulnerability subject to the following;
-The family unit must not have a joint income higher than €1,613.52, or higher depending on the number of children.
– The rental income plus basic expenses (water, electricity, telephone, etc.) must be at least 35 per cent of the net income received by all the members of the family unit.
-In addition, the tenant may not be the owner or have the use of another home in Spain.

In these cases, the legal eviction procedure may be suspended, but it does not mean an exoneration of the payment obligation and it will be possible to initiate the eviction procedure against tenants who do not pay, without prejudice to its temporary suspension.

In addition, an extension is agreed for the habitual residency contract which ends during the state of alarm and up to two months from its end.

It is also required when the owners or lessors are large holders (more than 10 properties) and companies or public housing entities, to accept a reduction of the monthly rent or a moratorium or delay on the payment. In addition, rental aids have been approved for those who cannot afford the monthly rents.

Mortgage loans in Spain. COVID crisis 19. Mortgage moratorium or delay.

As indicated in the case of leases, measures have been approved also to suspend the mortgage debt for three months (which can be extended by decision of the Spanish Government) in the payment of mortgage loans referring to the habitual residence, properties or premises dedicated to a professional activity, or non-habitual property that were rented and no income is received for said rental.

Rules for this, are the person must be;
-Unemployed or, in the case of a  business person or professional, when they have suffered a substantial loss of income or turnover of at least 40 per cent.
-The family unit must not have a joint income higher than €1,613.52, or higher depending on the number of children.
– The total of mortgage payments, plus basic expenses and supplies should be equal or more than 35 per cent of the net income of the family unit.

Therefore, if you have suffered the effects of the coronavirus crisis and want to request the suspension of your mortgage payment, or if you are a landlord or tenant who has problems with the rent and you want to get expert legal advice, contact our law firm, we will help you.

The information provided in this article is not intended to be legal advice, it merely conveys information related to legal issues.

Written by

Carlos Baos (Lawyer)

Lawyer Carlos Baos has been advising on variety of expat-related legal issues for years and weekly column offers free weekly insights.