{"id":48270,"date":"2023-06-13T15:45:01","date_gmt":"2023-06-13T13:45:01","guid":{"rendered":"https:\/\/www.escura.com\/legge-sulla-casa\/"},"modified":"2023-07-04T16:18:50","modified_gmt":"2023-07-04T14:18:50","slug":"law-on-the-right-to-housing-in-spain","status":"publish","type":"post","link":"https:\/\/www.escura.com\/en\/law-on-the-right-to-housing-in-spain\/","title":{"rendered":"The law on the right to housing in Spain"},"content":{"rendered":"

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The law on the right to housing in Spain: implications and significant issues<\/h1>\n

On May 29, 2023, Law 12\/2023, of May 24, 2023, on the right to housing, came into force.<\/p>\n

The full text of the law can be consulted at the following link:<\/p>\n

https:\/\/www.boe.es\/buscar\/act.php?id=BOE-A-2023-12203<\/a><\/p>\n

Through this circular, we explain the most significant aspects of the new Law:<\/p>\n

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  1. Elimination of the cpi as a reference index as of 2025.<\/strong><\/li>\n
  2. New definition of large holder<\/strong><\/li>\n
  3. TAX implications<\/strong><\/li>\n
  4. Obstacles to evictions<\/strong><\/li>\n
  5. Expenses derived from housing leasing contracts<\/strong><\/li>\n<\/ol>\n

    1.- Elimination of the CPI\u00a0 as a reference index as of 2025<\/u><\/strong><\/p>\n

    As we informed in previous circulars, in the middle of the year 2022, Royal Decree-Law 6\/2022, of March 29, which adopted urgent measures within the framework of the National Plan of Response to the economic and social consequences of the war in Ukraine, came into force (later modified by Royal Decree-Law 20\/2022, December 27) which introduced the obligation for landlords to apply the Competitiveness Guarantee Index (GCI), instead of the Consumer Price Index (CPI), when updating the annual rent to their tenants, until the end of 2023.<\/p>\n

    With the entry into force of Law 12\/2023, it has been consolidated to maintain the 2% cap of the GCR as a reference value set by the National Statistics Institute (INE) until the end of the year, agreeing that as from 2024, such index will increase to 3% and establishing that the INE must define a new reference index for the annual update of the housing lease contracts in replacement of the CPI, which will be applicable as from 2025.<\/p>\n

    2.- New definition of large tenant<\/u><\/strong><\/p>\n

    Until now, a large tenant was understood to be a landlord, whether an individual or a legal entity, who owned more than 10 urban properties, excluding garages and storage rooms, or a built-up area of more than 1,500 m2.<\/p>\n

    From now on, a large tenant will also be understood as a person who owns 5 or more urban properties for residential use located in stressed residential environments, when so motivated by the autonomous community.<\/p>\n

    In housing lease contracts in which the property is located in a stressed residential market area, within the period of validity of the declaration of the aforementioned area, the rent agreed at the beginning of the new contract may not exceed the last rent that had been in force in the last 5 years in the same property, once the clause of annual updating of the rent of the previous contract has been applied, without being able to set new conditions that establish the repercussion to the lessee of fees or expenses that were not included in the previous contract. However, this last possibility will not be applied until the aforementioned new index is approved.<\/p>\n

    3.- TAX implications<\/u><\/strong><\/p>\n

    The Law on the Right to Housing brings with it various tax incentives applicable to Personal Income Tax for landlords who lower the price of their rents in new contracts.<\/p>\n

    The current IRPF regulation provides for a reduction of 60% for the positive net yield derived from the lease of real estate intended for housing, and with the modification introduced by the housing law for contracts entered into since its entry into force, the general percentage of reduction will be 50% (instead of the previous 60%), but it regulates higher percentages for the following cases:<\/p>\n