In addition, the decree establishes that the owners can only review rental income once a year and in the terms agreed upon with the tenants. Regarding the duration of the contracts, these are extended from three to five years in the case of natural persons and to seven years in the case of legal entities. In addition, the tacit extension (which applies if neither party communicates its intention to terminate the contract) is extended from one to three years. For its part, the term to terminate the contract is December 2019 Calendar PDF months in the case of the owner and two months in the case of the tenant. The regulation limits bail to three months. Two additional “additional guarantees” are added to the month collected by law. In addition, the autonomous communities may establish a public bond deposit system that includes data from both the tenant and the owner. In this way, the Government wants to shed some light on a traditionally opaque market. In fact, at present five communities do not even register rental contracts.
December 2019 Calendar PDF
The Government undertakes to develop, within eight months, an index that reflects trends in the rental market. In addition, it urges the autonomous communities to carry out the same measure. From the Ministry of Development, however, they say that these indexes will only be used to know the sector and not to control prices. The Executive empowers the communities so that they can define the surcharge on the Real Estate Tax (IBI) that the town councils approve on the owners of vacant homes. This fiscal “punishment” was already included in the law, but in theory it would be the Government that drafted an empty housing definition to articulate the measure. The surcharge in the IBI to empty houses exists since 2002 and some consistories apply it for years, such as Barcelona or Seville.
Up to 95% allowances are allowed on the Real Estate Tax (December 2019 Calendar PDF), but only for housing protected for rent provided that the town councils agree on a legal rule to limited income. A tax is also established on the IBI of the empty house, the Transfer Tax is eliminated in the rents of habitual residence and the preferential acquisition right is applied by Public Administrations in case of the joint sale of a property with leases. The regulation also includes novelties for tourist housing, which are excluded from the Urban Leasing Law and remain in the hands of the communities, while the owners’ communities are allowed to limit this type of housing with a majority of 3 out of 5 or even assign them higher common expenses. In the case of evictions, the need to clarify the day and time of the launch is indicated. In addition, according to the text, “the determination of the situation of vulnerability will result in the suspension of the procedure until the measures are adopted that the social services deem appropriate for a maximum period of one month, or three months when the claimant is a legal entity.” .