The effects of Coronavirus on rentals in Spain

Filed under : Civil Law, Property, Tenerife Office

Royal Decree-Law 11/2020 has established measures to support families that live in a rented property and cannot pay the rental due to the COVID-19 crisis. Tenants can request a postponement in the payment of the rentals (including other expenses to be paid to the landlord such us Community fees, utility receipts, etc.) if they are unemployed or their work contracts have been suspended (“ERTE”) or they are working less hours as e.g. they have to look after their children, or if they are self-employed and suffering a substantial loss of income.

The term to request the postponement expires on 02/05/2020 and the exceptional measure will only be applicable during the state of emergency and the following 4 months.

Some further requirements must be met: the total income of the family cannot be more than 1613,52 Euros; the rental amount plus basic utility bills needs to represent more than 35% of the family income; family members cannot own a property in Spain. Tenants must present documents to prove all the circumstances (or declare that they will present them) and request the postponement in writing to the landlord who has a term of 7 working days to reply and: 1. Accept the request; 2. Apply a 50% or a higher discount to the rental amount; 3. Reject the request indicating the reasons for this. If there is no reply the measure will be applicable.

If the landlord owns less than 10 properties, he can reject the request and in this case the tenant can request a special financial aid granted by the State (tenants who receive this aid cannot be applied this measure). For more information you can call us on +34 922 719520 or email [email protected]