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RENTING IN SPAIN

What is Spain’s rental allowance fund and how can I claim it?

The Spanish government offers rental help for low and medium income earners aged between 18-35, but what is the 'bono' rental fund and how can you claim it?

What is Spain's rental allowance fund and how can I claim it?
Young people in Spain can apply for a rent bonus in 2022. (Photo by GABRIEL BOUYS / AFP)

As The Local reported last year, the Spanish government has created a ‘Bono Joven Alquiler’ (Youth Rental Bonus) to help young people with the rising cost of living and rental prices.

With inflation causing prices and rents to skyrocket in recent months, young people across Spain (both Spanish and foreign residents, more on that below) will be relieved to know that the money from the fund is now becoming available to claim, depending on where in Spain you are.

READ ALSO: Soaring energy prices push inflation in Spain up to 37-year high

The Local breaks down who’s eligible, for how much, and how to claim below:

‘El bono’

Back in January, Pedro Sánchez’s PSOE-led coalition government approved the Royal Decree 42/2022, which created the ‘Bono Joven Alquiler’ as part of a broader plan to increase access to housing between 2022-2025.

The ‘bono’ has a budget of €200 million set aside, and it is believed that over 70,000 young people will be able to claim up to €250 a month for a period of two years to help pay their rent.

READ ALSO: Spain to give young mid-income earners €250 monthly rental allowance

The fund has been welcomed by young Spaniards as the rental market in Spain places youngsters under particular pressure. According to a survey by Spanish property engine Fotocasa, 62 per cent of under 35s in Spain face financial obstacles when buying or renting a property.

And this forces them to stay at home longer, too: the average Spaniard leaves the nest at 29.5 years of age, the sixth latest bloomers in Europe, where the average age of emancipation is 26.2 years old.

So, what help is the government offering, and what are the terms?

How old do you have to be to claim?

Spaniards seem to be quite liberal with their understanding of ‘young’. You must be between 18 and 35 years of age to qualify for the bono support.

How much can you claim?

Each applicant is entitled to €6000 over two years, split into 24 monthly payments of €250.

Who’s eligible to claim?

In order to claim, you must satisfy a few basic criteria:

  • Be a Spanish or European citizen or a third-country citizen with legal residency in Spain.
  • The rental allowance must be used to pay rent, and nothing else.
  • The maximum price of the rented property must not exceed €600, or €300 for a room. There are some exceptions, where total rents may be higher in some cases, depending on where you are, up to €900 or €450 per room. 
  • Your annual income must not be more than three times the value of the IPREM (‘Public Multiple Effects Income Indicator’ or Indicador Público de Renta de Efectos Múltiples, in Spanish) which is currently set at €24,318.84.
  • However, according to the official government website, the IPREM calculation varies depending on your situation and family size: although it is three times the IPREM in general, it can be four times the IPREM for large families and people with disabilities, and five times for ‘special large families’ and people with more serious disabilities.
  • All rents, whether for an entire property or private room, must be supported by a rental contract for the purposes of the application.

How can I claim?

Despite being a flagship policy of the coalition government, the administrative process is delegated to the autonomous communities. As is often the case in Spain, each regional government has a slightly different process, but the first to open up applications for the fund are Catalonia and Valencia.

If you are based in Catalonia, and meet all of the criteria above, you can access the application portal of the Generalitat here, and for the Valencian Community on its housing aid website here.

READ ALSO: Rent prices in Spain rising 30 times faster than wages

It is believed that some autonomous communities will retroactively cover rent payments dating back to January 2022, although it is suggested that you contact your region’s individual housing authority for more information.

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For members

PROPERTY

Renting in Spain: When can a landlord legally kick out a tenant?

What legitimate reasons can a property owner in Spain give to ask their tenant to leave?

Renting in Spain: When can a landlord legally kick out a tenant?

There are good and bad landlords in Spain, and there also are good and bad tenants. Sometimes, the decision to end a rental agreement comes as a result of other reasons.

Either way, tenants and landlords alike may at some point need to consider the conditions under which a landlord can break the rental contract and require their tenants to leave. 

Here are the reasons which according to Spanish law can be given to end a rental agreement:

Not paying rent

An obvious one, as this is the tenant’s main contractual responsibility. If you don’t pay the rent, the landlord is within their rights to evict you if the payments break any late-payment agreements you might have. Be sure to check the contract, and as a landlord it may be worth getting rental default insurance if this happens.

READ ALSO: Is getting rental default insurance worth it for landlords in Spain?

Animals at home

Many rental contracts include clauses specifying whether the tenant can have pets in the house. Some landlords are happy to have pets, but if they specify that he or she doesn’t want animals in their property and the tenant breaks the terms of the contract, the landlord is within their rights to evict them.

Termination of the contract

When the rental contract actually ends, the tenant is obliged to leave the property. In this sense, the owner must communicate, at least 30 days in advance, his willingness not to renew the rental agreement. Otherwise, the lease will be extended.

READ ALSO: What’s the law on squatting in Spain?

Subletting

Most rental contacts in Spain expressly forbid the subletting of properties or rooms in the contract. If the tenant isn’t contractually allowed but sublets the property anyway, they can be kicked out.

READ ALSO: Is subletting ever legal in Spain?

Not keeping to ‘comunidad‘ rules

If a tenant doesn’t respect the rules of ‘la comunidad‘ (like a homeowner’s association) in the building where the rented property is located, the landlord could be within their rights to evict them. Often the landlord may be friendly with el presidente of the homeowner’s association, and violations could include any number of things, but generally relates to behaviour that is annoying, unhealthy, harmful, or dangerous to other residents.

In those cases, la communidad itself could initiate legal action against the tenant with the aim of immediately evicting the tenant.

READ ALSO: ‘La comunidad’: What property owners in Spain need to know about homeowners’ associations

Illegal activities

It almost goes without saying, but if a tenant is undertaking illegal or illicit activities in the property the landlord is well within their rights to terminate the contract and kick the tenant out.

Doing work on the house

Tenants cannot carry out major works on the property without the express written consent of the owner. Any refurbishments that alter the configuration of the house (including storage rooms and parking spaces) must be agreed to in advance by the landlord. Otherwise, the tenant could be forced to repair the damage, and will likely have their rental contract terminated.

 

Purchase/sale of the property

If a landlord sells the property, the new owner can evict the tenant if they wish. If that does happen, tenants do have some legal rights and can’t be turfed out onto the street immediately – they can usually stay for a maximum of three months from when the property is sold.

The landlord needs the property

If the landlord or any of his or her family members (by blood, adoption or ex-husbands and wives) need the property for themselves, they must inform the tenant and grant them a two-month period to vacate the property. For this to be possible, the Urban Leases Law requires that at least one year of validity of contract has elapsed, and the landlord or family member must occupy the house within a maximum period of three months after the tenant is evicted.

Breach of contract

Generally speaking, the breaching of any clause of the rental contract is justifiable grounds for evicting a tenant. We have outlined several potential contract breaches above, but it is worth remembering that, technically, a landlord is within their rights to kick out a tenant for any breach of any clause in the contract – so be sure to read the small print.

READ ALSO: Tenant or landlord – Who pays which costs in Spain?

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