Carlos Baos – New Housing Law Approved

New housing law approved in Spain. Rental agreements. Eviction Court Proceedings. Personal Income Tax benefits. Key aspects. (Part 2)

As explained last week, a new property law has recently been passed in Spain that introduces numerous changes to different laws in our country. In today’s article, we continue with our analysis, focusing on three fundamental aspects: minimum information that must be handed over to tenants and buyers (in sales and rental contracts), tax benefits in the Personal Income Tax of landlords (with which it is intended to incentivise rentals) and changes in the eviction proceedings against tenants and other occupants.

Minimum information in Sales and Rentals

From now on, in both rental and purchase contracts, it will be compulsory to provide potential buyers or tenants with detailed and extensive information on the characteristics of the property, its legal situation, etc. Among the documentation to provide to tenants/buyers, stand out the following: applicable legal protection regime of the property (in the case of subsidised housing), if the property has a valid occupation licence or “cédula de habitabilidad”, legal information on the property, conditions of accessibility of the dwelling and the building, age of the building, etc.

Tax benefits for landlords

The law aims to encourage and increase the number of rented properties in Spain. For this reason, several tax benefits will be offered in the personal income tax return to the landlords, consisting of reductions in the income declared, when certain circumstances are met. These reductions will vary between 90 per cent and 60 per cent depending on the age of the tenants, if the rental price is lowered, whether the property has been recently renovated, etc.

Eviction proceedings

The requirements and conditions that must be met in order for eviction proceedings to succeed, have been increased. From now on, landlords who want to evict a tenant or occupant will have to:

– Confirm whether the dwelling constitutes the tenant’s habitual residence.

– Confirm through a certificate from the Land Registry whether they, as owners, can be considered “large tenants”.

– Confirm through the competent administration whether the tenants/occupants are in a situation of vulnerability.

– Etc.

At White-Baos Lawyers we are experts in property law, rental agreements, etc. If you are either a landlord or a tenant, and you want to know in detail how the new housing law may affect your rights when signing a rental agreement, please do not hesitate to contact us. We will study your case and offer you expert advice.

You may be interested in the following services and articles:

The guarantors in the rental contracts. Eviction court cases against guarantors in Spain. How to get the money back..

The landlord’s right to reclaim the possession of the rented property for his own use or family members. Legal advice. Urban leasing law.

Have you signed a home lease or rental contract? Can you terminate the contract? Should you pay any compensation?.

Carlos Baos (Lawyer)

White & Baos.

Tel: +34 966 426 185

E-mail: info@white-baos.com

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