New law on housing conditions in Spain. Six facts you need to know.

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Real estate experts from Moving to Spain talk about Spain's new housing law, from regulating rental prices in stressed areas to tax breaks for landlords.

Six facts about Spain's 2023 housing law.

Rental prices will be regulated: rental prices in stressed areas will be regulated based on criteria such as the Consumer Price Index (CPI) and the distribution of rental income. In these areas, rental price restrictions vary depending on the number of properties owned by the landlord.

Introduction of a rent control index: from 2025, the rent control index will replace inflation as the basis for limiting annual rent increases. However, until then there is a temporary cap on CPI-related rent increases. As a tenant, this will be to your advantage as prices will not rise exponentially from year to year.

Agency fees are now paid by landlords: good news for tenants! Landlords are now responsible for paying agency fees, which helps to reduce the financial burden of renting a property. Previously, agency fees in Spain often amounted to one month's rent or more.

Mandatory date and time for eviction: eviction without a pre-arranged date and time will be prohibited. The law includes new extensions and mandatory access to out-of-court settlement procedures for vulnerable tenants.

IBI tax on empty apartments: the law allows municipalities to impose financial penalties on property owners who do not use their property for a long time. Such penalties will be levied in the form of additional payments to the property tax (IBI). This law is being introduced to encourage owners to rent out their properties.

Tax incentives for landlords: Beginning January 1, 2024, landlords can receive tax incentives, such as deductions from rental income. In certain high-stress areas, this deduction is up to 50 percent.

Requirements for renting a property in Spain: a rental agreement will have a minimum term of six months. However, most contracts are long - usually for one or two years. You will need to pay a deposit. This will be an amount equivalent to 1-2 months' rent. You will need proof of your income. Your landlord may ask for proof that you have enough monthly income to pay your rent without problems. You will need documentation to prove that you can rent in Spain. Some landlords are more flexible than others, but the most common documents are: NIE, which is an identification number assigned to every foreign resident in Spain; an employment contract or certificate of study and/or third-party references.

Alison Johnson, the owner of Moving to Spain, commented on the requirements for renting property in Spain, as well as common rental scams to watch out for and how to avoid them. "Searching for a rental apartment in Spain can be overwhelming, especially if you are a foreigner who has just arrived in the country. With all the paperwork, processes, and conditions, finding a place to live can be a challenging task. That's why we have prepared a small guide to help you navigate everything you need to know about renting accommodation in Spain as a foreigner and signing a fair contract."