{"id":7794,"date":"2020-10-16T13:53:01","date_gmt":"2020-10-16T13:53:01","guid":{"rendered":"https:\/\/vila.es\/?p=7794"},"modified":"2020-10-16T13:53:01","modified_gmt":"2020-10-16T13:53:01","slug":"restraint-on-rent-housing-lease-agreements-in-catalonia","status":"publish","type":"post","link":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/","title":{"rendered":"RESTRAINT ON RENT: HOUSING LEASE AGREEMENTS IN CATALONIA"},"content":{"rendered":"<div>\n<p class=\"Standard\" style=\"text-align: justify;\"><span lang=\"EN-GB\">On 21<sup>st<\/sup> September 2020, the Generalitat de Catalunya (Government of Catalonia) published the new law 11\/2020, of 18<sup>th<\/sup> September, in the Official Gazette, on urgent measures to restrain rent in housing leases. Pursuant to this Law the necessary new measures are introduced to limit the price increases of housing rentals in areas with a strong proven demand for rental properties.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\">\n<\/div>\n<div style=\"text-align: justify;\">\n<p><b><span lang=\"EN-GB\">1. CONTRACTS SUBJECT TO THE NEW LAW.<\/span><\/b><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">In order for a contract to be subject to the application of said Law, it is necessary for certain requirements to be fulfilled, and furthermore, that it does not fall within certain categories which have been expressly excluded.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">In accordance with article 1 of the Law, those housing lease agreements for which the following circumstances exist shall be subject to the application thereof:<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 80px;\"><span lang=\"EN-GB\">a) that the property is intended for the permanent residence of the lessee;<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 80px;\"><span lang=\"EN-GB\">b) that the leased property is situated in an area which has been declared an area with a tense housing market.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">That is to say, lease agreements on business premises are not affected and neither are housing lease agreements which are not in an area declared as a tense housing market.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">Furthermore, those contracts signed before the entry into force of the Law shall continue to be governed by the provisions of the former legislation. However, the Law shall apply in the case of the novation of a contract subsequent to the declaration of an area with a tense housing market, whenever this means an extension of the duration of the contract or a modification of the rent.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">On the other hand, the following types of lease agreement are excluded from the application of the Law:<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 80px;\"><span lang=\"EN-GB\">(a) Those which are subject to special regimes for the determination of rent;<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 80px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">(b) Those agreements signed before 1<sup>st<\/sup> January 1995.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">(c) Those agreements for housing subject to a social housing regime;<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">(d) Those wherein the subject of the agreement is housing integrated into inclusive housing networks or networks for mediation in social housing or the Fund for housing for social policies;<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">(e) Welfare housing;<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">(f) Those which are in accordance with the legal provisions applicable to mandatory social rentals.<\/span><\/p>\n<p style=\"padding-left: 40px;\">\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><b><span lang=\"EN-GB\">2. AREAS WITH A TENSE HOUSING MARKET<\/span><\/b><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">Only those lease agreements for housing located in areas declared as \u201careas with a tense housing market\u201d are subject to the system of restraint. <\/span>At the moment they are as follows:<\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 80px;\">Badalona, Barber\u00e0 del Vall\u00e8s, Barcelona, Blanes, Calafell, Castellar del Vall\u00e8s, Castelldefels, Cerdanyola del Vall\u00e8s, Cornell\u00e0 de Llobregat, Esplugues de Llobregat, Figueres, Gav\u00e0, Girona, Granollers, L&#8217;Hospitalet de Llobregat, Igualada, Lleida, Manlleu, Manresa, Martorell El Masnou, Matar\u00f3, Molins de Rei, Montcada i Reixac, Montgat, Olesa de Montserrat, Olot, Palafrugell, Pallej\u00e0, Pineda, El Prat de Llobregat, Premi\u00e0 de Mar, Reus, Ripollet, Rub\u00ed Sabadell, Salou, Salt, Sant Adri\u00e0 de Bes\u00f2s, Sant Andreu de la Barca, Sant Boi de Llobregat, Sant Cugat del Vall\u00e8s, Sant Feliu de Gu\u00edxols, Sant Feliu de Llobregat, Sant Joan Desp\u00ed, Sant Just Desvern, Sant Pere de Ribes, Sant Vicen\u00e7 dels Horts, Santa Coloma de Gramenet, Santa Perp\u00e8tua de Mogoda, Sitges, Tarragona, Terrassa, Tortosa, El Vendrell, Vic, Viladecans, Vilafranca del Pened\u00e8s, Vilanova i la Geltr\u00fa y Vilassar de Mar.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><b><span lang=\"EN-GB\">3. FIXING OF THE INITIAL RENT.<\/span><\/b><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><u><span lang=\"EN-GB\">General rule<\/span><\/u><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">(a) The initial rent may not exceed the price of reference for the rental of a property with similar characteristics within the same urban area.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\">(b) If the property has been leased in the five years prior to the date of entry into force of the Law, the initial rent may not exceed the consigned rent in the last duly updated lease agreement.<\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">The criteria established in point b) above is not applicable in the following cases:<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">(a) If there is a family relationship between the parties who had formalised the most recent lease agreement signed before the entry into force of the Law.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 80px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">(b) If a lease agreement is formalised relative to a property initially excluded from the application of the Law when the special regime for fixing rent terminates, which was applicable thereto.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">If the lessor is a natural person, the limit of the consigned rent in the latest lease agreement is only applicable if the dwelling unit of the lessor has an income equal or inferior to 2,5 times the sufficiency threshold for rent in Catalonia. However, this is not applicable if the income of the lessee is 3,5 times higher than the weighted sufficiency threshold for rent in Catalonia.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">If the same property is the subject of various lease agreements with a simultaneous effect which affects different parties, the sum of the agreed upon rent in the different contracts may not exceed the maximum rent applicable to the unitary lease of the property.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\">\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><b><span lang=\"EN-GB\">4. REFERENCE PRICE<\/span><\/b><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">The reference price is established based upon the property lease price index of reference which may be accessed via the internet portal site of the Generalitat. The index is considered to be a reference price (which is marked in red on the web page), without taking into account the greater and lesser pricing margins.<\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">Nevertheless, the lessor may propose a price increase of up to 5% in two scenarios: <\/span><\/p>\n<\/div>\n<div style=\"padding-left: 40px; text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">(i) if during the last year works have been carried out on the property which improve habitability, security, comfort or energy efficiency or (ii) if the property comprises at least three of the following: lift, parking, furniture, heating or cooling systems, community areas with shared use, shared pool or similar equipment, concierge services in the building or special views from the property.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\">\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><b><span lang=\"EN-GB\">5. NEW OR REFURBISHED DWELLINGS<\/span><\/b><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">In the case of newly built dwellings or dwellings which have undergone an important refurbishment process, and for the five years following the obtaining of the construction completion certificate, the rent agreed upon at the start of the contract may not exceed the upper margin of the price reference index for a dwelling with similar characteristics in the same urban area. This does not apply if public grants have been obtained for the execution of the work. The entry into force of the restriction is thus is delayed by three years.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><b><span lang=\"EN-GB\">6. ENTRY INTO FORCE<\/span><\/b><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\" style=\"padding-left: 40px;\"><span lang=\"EN-GB\">This Law entered into force the day following the publication in the Official Gazette, this being 22<sup>nd<\/sup> September 2020.<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p>&nbsp;<\/p>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">Mika Tsuyuki<\/span><\/p>\n<p>Vil\u00e1 Abogados<\/p>\n<p>&nbsp;<\/p>\n<div>\n<p class=\"Standard\"><span lang=\"EN-GB\">For more information, please contact:<\/span><\/p>\n<\/div>\n<div>\n<p class=\"Standard\"><span style=\"color: #3366ff;\"><span lang=\"EN-GB\">\u00a0<\/span><a style=\"color: #3366ff;\" href=\"mailto:va@vila.es\"><span lang=\"EN-GB\">va@vila.es<\/span><\/a><\/span><\/p>\n<\/div>\n<\/div>\n<div style=\"text-align: justify;\">\n<p class=\"Standard\"><span lang=\"EN-GB\">\u00a0<\/span><\/p>\n<\/div>\n<div style=\"text-align: justify;\"><span lang=\"EN-GB\">16<sup>th<\/sup> October 2020<\/span><\/div>\n<div style=\"text-align: justify;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>On 21st September 2020, the Generalitat de Catalunya (Government of Catalonia) published the new law 11\/2020, of 18th September, in the Official Gazette, on urgent measures to restrain rent in housing leases. Pursuant to this Law the necessary new measures are introduced to limit the price increases of housing rentals in areas with a strong  [&#8230;]<\/p>\n","protected":false},"author":4,"featured_media":4704,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[],"class_list":["post-7794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>RESTRAINT ON RENT: HOUSING LEASE AGREEMENTS IN CATALONIA - Vil\u00e1 Abogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"RESTRAINT ON RENT: HOUSING LEASE AGREEMENTS IN CATALONIA - Vil\u00e1 Abogados\" \/>\n<meta property=\"og:description\" content=\"On 21st September 2020, the Generalitat de Catalunya (Government of Catalonia) published the new law 11\/2020, of 18th September, in the Official Gazette, on urgent measures to restrain rent in housing leases. 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Pursuant to this Law the necessary new measures are introduced to limit the price increases of housing rentals in areas with a strong [...]","og_url":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/","og_site_name":"Vil\u00e1 Abogados","article_published_time":"2020-10-16T13:53:01+00:00","og_image":[{"width":669,"height":272,"url":"https:\/\/vila.es\/wp-content\/uploads\/2020\/07\/inmobiliario.jpg","type":"image\/jpeg"}],"author":"Vil\u00e1 Abogados","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Vil\u00e1 Abogados","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/#article","isPartOf":{"@id":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/"},"author":{"name":"Vil\u00e1 Abogados","@id":"https:\/\/vila.es\/en\/#\/schema\/person\/1338568a83d16fbfd6073c8cc4834904"},"headline":"RESTRAINT ON RENT: HOUSING LEASE AGREEMENTS IN CATALONIA","datePublished":"2020-10-16T13:53:01+00:00","mainEntityOfPage":{"@id":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/"},"wordCount":1053,"commentCount":0,"image":{"@id":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/#primaryimage"},"thumbnailUrl":"https:\/\/vila.es\/wp-content\/uploads\/2020\/07\/inmobiliario.jpg","articleSection":["Real Estate"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/","url":"https:\/\/vila.es\/en\/real-estate\/restraint-on-rent-housing-lease-agreements-in-catalonia\/","name":"RESTRAINT ON RENT: HOUSING LEASE AGREEMENTS IN CATALONIA - 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