Coronavirus - Government measures in key jurisdictions - Flipbook - Page 75
Spain
5
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
•
RDL 8/2020 incorporates a moratorium in favour of mortgage debtors who are in a
particularly vulnerable situation (i.e. the mortgagor becomes unemployed or, in the
case of a businessperson, suffers a substantial loss of income or a substantial drop in
sales, that is, at least 40%).
•
If the landlord is an entity or a public housing company (entidad ‘pública de
vivienda’) or a large individual holder (i.e. an individual owning more than 10
properties or owning a built facility bigger than 1,500 sq.m), the tenant may request
temporary and extraordinary deferment of the rent of his/her principal residence
within one month from the enter into force of Royal Decree-law 11/2020, March 31,
provided that said deferment or the total or partial remission of the rent has not
already been achieved voluntarily by agreement between both parties. In the event
that the agreement had not taken place, the landlord may choose between the
following alternatives:
– a 50% reduction over the rent while the state of emergency is in force, or
– a moratorium on the payment of the rent that will be applicable during the term
of the state of emergency (and which may be extended monthly if that term is
insufficient in relation to the situation of vulnerability caused by the COVID-19), and
which may not, in any case, exceed four months.
6
Litigation
•
Likewise, measures related to the suspension of the eviction procedures as well
as the removals of judicial releases for vulnerable households without alternative
housing have been introduced.
•
Finally, besides the above regulations introduced by the Spanish government to
mitigate the economic impact regarding the COVID-19, the undertakings that need
to bear rental payments while their business are closed (retailers, in particular) are
requesting to their landlords, on a general basis, rent free periods regarding their lease
agreements given the extraordinary nature of the health emergency resulting from
COVID-19, based on the force majeure and rebus sic stantibus applicable case law.
•
For more information please visit: Royal Decree-Law 8/2020 of March 17, 2020
launches urgent and extraordinary measures to confront the economic and social
impact of COVID-19, and COVID-19: Key new legislation introduced in Royal DecreeLaw 11/2020
•
Suspension of procedural and administrative terms, statutes of limitations and
time bars: additional provision two of Royal Decree 463/2020, of March 14 (“RD
463/2020”) states that for all court orders under procedural laws, the time limits
have been suspended and the terms have been interrupted. These time periods
will resume when RD 463/2020 or any of its extensions cease to be in force. This
interruption will not apply in the cases specifically mentioned in the RD 463/2020.
•
For more information please visit: COVID-19: Royal Decree declaring situation of
emergency published, Companies facing the COVID-19 crisis, and COVID-19: Key
new legislation introduced in Royal Decree-Law 11/2020
Are the courts
operating?
Government measures in key jurisdictions
75