The Latest Spanish Property News from Kyero.com
October 2nd, 2007
Spanish government plans legal changes to boost rentals that will help property owners as well as tenants.
If you want to rent a property long-term in Spain, there are many laws that will protect you as a tenant. If your contract lasts for a year or more and the property you are renting is your sole home, you are legally entitled to request to stay in that property for five more years and rent increases are regulated to prevent large monthly price rises. All these things, though, put some property owners off letting their properties as they could be tied up with tenants for five years and, should the tenant default on the rent, getting permission to evict a tenant is a long, complicated and costly process. Now the Spanish government is debating the introduction of express evictions to encourage more property owners to let out their homes long -term.
The Spanish government is also aware that many young and low-paid Spaniards are priced out of their country’s housing market, and so is launching two new schemes to make it easier for people to be able to afford to rent the sort of home they need. Tenants, no matter what age they are, will be entitled to tax relief, and 22-30-year-olds in full-time employment who earn less than 22,000 Euros per year will be entitled to a direct accommodation subsidy of 210 Euros per month.
In Andalucia the regional government is going a step further and building hundreds of thousands of properties to use as social housing, where low-income families will be guaranteed a home costing no more than 25% of their monthly income to rent if they earn less than 500 Euros per month and no more than 33% of their monthly income to rent or buy if they earn between 500 and 3,100 Euros.
All this will boost Spain’s long-term rental market and, while the weekly yields are not has high as they are in peak season for holiday lets, the prospect of a stable year-round level of rental may well appeal to Britons who own property in Spain that they plan to keep for the medium to long term.
