The Spanish Government has this morning published a new Ley de Arrendamientos Urbanos (LAU – Urban Letting Law) which amends existing non-touristic rentals of private property. The legislation, Real Decreto-ley 21/2018, de 14 de diciembre, de medidas urgentes en materia de vivienda y alquiler, comes into effect tomorrow, as always 24 hours after its official publication, and will apply to any and all contracts signed from that point on. I’ve updated the page on the legal situation HERE, but in bullet point form the main changes under this amended law are that:

  • the three year automatic renewal period returns to a five year minimum as it was prior to being reduced to three years;
  • after the first five years, further renewals are automatically for three years rather than the sole year currently;
  • in addition to the normal month’s deposit, any bond required can be no more than the equivalent of two months’ rent;
  • evictions of the socially vulnerable for rent arrears can only take place after the Court and Social Services have arranged alternative accommodation;
  • contract and administration fees must be paid by the landlord if this is a business or other legal entity (i.e. not if the landlord is a private individual);

The new regulations are intended to reinforce longer-term tenants’ rights given increases in rental costs and decreases in properties available for residential lets. The law explicitly does not cover holiday rentals which are deemed to be an economic activity governed by tourism legislation. As such this new legislation, being a national Urban Letting law, is unconnected with regional tourism legislation, whether the main tourism law or the Vivienda Vacacional decree which is currently being redrafted: tourism rules concerning rentals in the Canaries are as I’ve described HERE.

Today’s law does make one change that impacts on complexes, however, namely that the required vote for a community to change its Statutes to limit or ban future holiday letting has been reduced from unanimity to a 60% majority, though since the legislation is not retroactive, any such ban would not apply to any properties that are legally registered as of tomorrow for tourism rentals. The measure is intended to allow residential communities to restrict tourism so as to retain their designated character.


Election Called Over Budget

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Spain’s Prime Minister Pedro Sánchez has called a general election on 28 April. Sánchez is leader of the socialist party, PSOE, which has been in minority Government since a vote of No Confidence last summer (see HERE), and as we saw only a week ago with the proposed...

Environmental Restoration

Environmental Restoration

Updated 12 February 2019: The Canarian Government’s Environment Department has initiated procedures to declare areas around the Taucho shooting range to be “contaminated”. The measure was taken at the end of last month and follows denuncias, studies and checks last...


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