New Housing Law in Spain: everything you need to know

The New Housing Law was approved in the Spanish Congress on April 27, 2023. It is currently being processed in the Senate before being published in the Official State Gazette (BOE).

Although it addresses several aspects, its main objective is to establish a certain order in the real estate sector.

New Housing Law 2023

These are the main novelties to be kept in mind:

Extension of stressed zones

Two new requirements will be established in order to declare an area as stressed:

1. That the cost of the mortgage or monthly rent exceeds 30% of the average rent.
2. That the sale or rental price has increased by three points above the CPI in the years prior to the declaration of the area as a stressed area.

The State and each Autonomous Community will be responsible for cataloguing the neighborhoods or municipalities that meet these requirements.

When an area is declared to be under stress, the measure will have a minimum duration of three years. It may be extended to avoid a rapid increase in rents.

Cap on rent price updates

From January 2024, rent updates will be limited to a maximum of 3%, without being linked to the CPI.

Reduction of large tenants

A person who owns 5 or more properties in stressed areas will be considered a large holder. Previously, a minimum of 10 properties were required.

Real estate commissions will be paid by the owner

In the case of rental contracts, the commission for the contracted real estate service will be paid by the owner and not by the tenant, as was the case until now.

Taxes for empty apartments

It will be applied by means of a surcharge in the Real Estate Tax (IBI) and, depending on the case, it may reach up to 150%.

It will be imposed on those dwellings that remain unoccupied continuously for a period of more than two years, and provided that the lessor is the owner of four or more properties.

The objective? To encourage renting.

Measures to protect against evictions

The new legislation will include several measures to protect people at risk of eviction:

• It will extend the launching processes for more than two years.
• It will set the date and time for evictions.
• It will give the possibility of using funds from state housing plans to offer subsidized social rents and re-housing to vulnerable people.
• The Autonomous Regions will be allowed to establish their own mediation mechanisms and housing alternatives.

No more extra expenses

It will not be allowed to increase the price of the rent with additional charges, such as the garbage fee or increases in the community fee.

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Do you want to be the next one to reach the goal? We are committed to provide you with a completely personalized advice to help you achieve your dream.

Do not hesitate to contact our team of professionals in our real estate agency in Barcelona or Madrid, we look forward to meeting you!