When the Housing Law was approved at the state level, Catalonia was quick to speak out about its stressed residential market areas, where there would be limits and other measures on rent. The Law also gave the possibility of redefining the concept of large holder, which as a general rule is the owner of “more than 10 urban properties” (excluding garages and storage rooms) or more than 1,500 m2 built, but Catalonia had not confirmed anything in this regard. .
Now yes. In Catalonia, and once this legislative initiative is approved, a person who owns 5 or more properties for residential use, which are located in said stressed areas, will be considered a large owner. And special rent containment measures will be applied.
The justifying report of the Generalitat has been transferred to the Ministry of Transport, Mobility and Urban Agenda for final approval.
The Law proposes limits to the increase in income in the formalization of new contracts. In the case of large holdings, the rental price in the new contract cannot exceed the reference index of the Catalan Housing Agency for the specific property.
When the owner is not a large holder, in stressed areas, new contracts will also be subject to limits. Specifically, the rent cannot be higher than the previous rental (in force for the last 5 years) or, if it had not been rented, the ceiling will also be set according to the price index.
Nor may other expenses (such as community fees or expenses or taxes) that were not already charged in the previous contract be passed on to the tenant.
A large holder must accept an annual extension of the lease contract when it ends, whether or not the property is in a stressed area, as long as the tenant requests it and is in a situation of social and economic vulnerability, a condition that must be accredited by the Administration.
The Law proposes similar extensions for all contracts, without having to prove the situation of vulnerability, whether the owner is a large holder or not, as long as they are in a stressed area, unless the parties reach another agreement, a contract has been signed. new lease contract with rent containment or that the owner needs the apartment for himself or his closest relatives.
The Law proposes multiple measures to try to reverse the rental situation in Catalonia for all contracts.
It is mandatory to use electronic means to pay rent (except in very specific cases), rent updates will be limited to 3% during 2024 and the owner must pay property management expenses in all cases.
In addition, in contracts entered into as of May 26, 2023, the lessor may apply several reductions in personal income tax of up to 90% on the net rental income.
