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.