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Who can request a rent deferral or reduction?

The parties to main residence rental agreements entered into under Act 29/1994 of 24 November on Urban Rentals which were in force on 31 March 2020 who, as a consequence of the health emergency caused by COVID-19, find themselves in a situation of economic vulnerability may request the deferral envisaged in Royal Decree-Law 11/2020 of 31 March 2020.

 

According to the provisions set forth therein, the economic vulnerability requirements which must be fulfilled to be eligible for a rent deferral or reduction are the following:

 

a) Situation of the tenant: That the tenant becomes unemployed, is on furlough (temporary leave job retention scheme or Expediente Temporal de Regulación de Empleo – ERTE – in Spanish) or, in the case of businessmen, has had their working day shortened to care for others or any other similar circumstances which involve a substantial loss of income and, as a result thereof, the joint income of the family unit's1 members in the month prior to the request fails to reach:

i. In general, the limit of three times the monthly Public Income Indicator for Multiple Purposes (hereinafter "IPREM"2).

ii. This limit shall be increased by 0.1 times the IPREM for each dependent child in the family unit. The increase which applies for each dependent child shall be 0.15 times the IPREM in the case of single-parent family units.

iii. This limit shall be increased by 0.1 times the IPREM for each person aged over 65 who is a member of the family unit.

iv. Should any of the family unit's members have a declared disability level equivalent to or exceeding 33 per cent, a situation of dependence or a certified illness that incapacitates them from performing a work activity on a permanent basis, the limit envisaged in subparagraph (i) shall be four times the IPREM, without detriment to any cumulative increases for dependent children.

v. Should the person obliged to pay the rent be a person suffering from cerebral paralysis, a mental illness or an intellectual disability having a recognised disability level equivalent to or exceeding 33 per cent, or be a person suffering from a physical or sensory disability having a recognised disability level equivalent to or exceeding 65 per cent, as well as in the case of people suffering from a certified severe illness which incapacitates the person or their carer from performing a work activity, the limit envisaged in subparagraph (i) shall be five times the IPREM.

 

b) Rent, expenses and utilities: That the rent plus expenses and basic utilities (the cost of electricity, gas, heating oil and running water utilities, along with the cost of landline and mobile telecommunications services and any possible condominium fees that the tenant has to pay, which must all be of the main residence) turn out to exceed or be equivalent to 35 per cent of the net income received by all the family unit's members.

 

Nonetheless, the circumstance of economic vulnerability shall not come about where the tenant or any of the people who make up the family unit and live in the home are the owners or usufructuaries of a home in Spain, unless:

 

- The right of ownership or usufruct they hold only corresponds to an aliquot part of the home and has been obtained by means of inheritance or a mortis causa transfer without a will; or

- Even where they are the owners of a home, it is certified that the home is unavailable as a result of a separation or divorce, due to any other reason beyond their will or where the home is inaccessible because of the disability of its owner or of any of the people who make up the family unit.

When can it be requested?

Any parties to main residence rental agreements who consider that they find themselves in a situation of economic vulnerability as a result of the health emergency caused by COVID-19 may request the renting entity for a rent deferral or reduction within the period established until September 30, 2020.

 

 

You can now submit your main residence rent deferral request on our website, thereby avoiding the need to visit a branch. All documents that need to be examined must be submitted.

What documents must be submitted when requesting the deferral?

When filing the request, the following documents must be submitted:

 

a) Legal situation of unemployment: Certificate issued by the benefits management entity stating the monthly amount received for unemployment benefits or subsidies.

 

b) Cessation of self-employed workers' activity: Certificate issued by the State Tax Administration Agency (Agencia Estatal de la Administración Tributaria - AEAT) or, where appropriate, by the regional authority's competent agency based on the cessation of activity statement declared by the interested party.

 

c) People who live in the main residence:

i. Family record book or document certifying civil partnership.

ii. Local authority residence registration certificate (certificado de empadronamiento) of the people living in the home referring to the time of the supporting documents' submission and the preceding six months.

iii. Declaration of disability, dependence or permanent incapacity to perform a work activity.

 

d) Ownership of the property: Extract issued by the Land Registry's indexing service of all the family unit's members.

 

e) Affidavit of liability by the tenant(s) on fulfilment of the aforementioned requirements.

 

Moreover, if the request is filed for and on behalf of a third party, a document certifying sufficient powers of attorney to make such a request on behalf of said third party must also be attached thereto.

 

Should the person requesting the deferral be unable to submit any of the documents indicated in subparagraphs (a) to (d), including both, they must include in the affidavit of liability mentioned in subparagraph (e) an express justification of the reasons thereof related to the consequences of the COVID-19 crisis that prevent them from submitting said documents. In such case, they shall be obliged to submit any documents they have not submitted within the time limit of one (1) month from the end of the state of alarm or its extensions.

 

When can a rent deferral or reduction be obtained?

Once the relevant documents have been submitted and if the requirements set forth above are met, the renting entity shall have a time limit of seven business days to notify the tenant of the option it has chosen to apply between the following two alternatives:

 

a) A 50% rent reduction during the time the state of alarm decreed by the Government lasts and the following monthly payments if such term should turn out to be insufficient as regards the situation of vulnerability caused by COVID-19, for a maximum time of four months in any event; or

 

b) A rent deferral, which will be automatically applied and affect the time the state of alarm decreed by the Government lasts and the following monthly payments, which may be extended on a month-by-month basis, if such term should turn out to be insufficient as regards the situation of vulnerability caused by COVID-19, which may not exceed four months in any event. Said rent shall be deferred as from the following monthly rent payment by splitting the instalment over at least three years, which shall be counted from the time the aforementioned situation is overcome or from the four-month period mentioned above, and always within the time the rental agreement or any of its extensions remain in force. The tenant shall not be imposed any kind of penalty and the amounts thus deferred shall be paid to the landlord without any interest.

Applicant's liability

The person(s) who have benefitted from the rent deferral or reduction measures without meeting the requirements envisaged in the Royal Decree-Law shall be liable for any damages which may have been caused, as well as for any expenses incurred due to the application of these measures, without detriment to any other liabilities which may arise from such behaviour. The amount of damages and expenses shall not be less than the benefit unlawfully obtained by the tenant as a result of the Royal Decree-Law's application.

 

Anybody who voluntarily or deliberately seeks to place themselves or remain in the circumstances of economic vulnerability in order to obtain said deferral or reduction shall also be liable.

 

Where can the documents required by the Royal Decree-Law be obtained?

Certificate of unemployment: 
Website of the State Public Employment Service (Servicio Público de Empleo Estatal - SEPE)

 

Cessation of self-employed workers' activity:
State Tax Administration Agency (Agencia Estatal de la Administración Tributaria) or the regional authority's competent agency.

 

Local authority residence registration certificate (certificado de empadronamiento): 
From the relevant local authority. It can be requested by telephone, over the Internet or by post from many local authorities.

 

Extract issued by the Land Registry's indexing service of all the family unit's members:
You can request it by e-mail from the Land Registry where your main residence is registered or, if necessary, from any of the Registries in the city where you have your main residence. You must necessarily submit a copy of the national ID card of the person concerning whom the information must be issued or, where appropriate, that of all the family unit's members.
http://www.registradores.org/lista-de-correos-electronicos-de-los-registros-de-la-propiedad/

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