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RENTING IN SPAIN

Spain to keep limiting rent increases throughout 2023

The Spanish government has agreed to continue limiting the amount landlords can increase the rent of tenants by a maximum of 2 percent throughout 2023, shielding renters from rising inflation.

rent increase cap spain
The rent increase limit will be in place until December 31st 2023. (Photo by Pierre-Philippe MARCOU / AFP)

Pedro Sánchez’s government made the announcement on Tuesday after receiving the support of Basque nationalist party EH Bildu, a necessary step for Spain’s General Budgets for 2023 to be approved.  

Spain’s ruling Socialists first introduced the rent increase cap in March 2022, which was meant to be a temporary measure to protect the 30 percent of people in Spain who rent from spiralling inflation. 

Prior to that, many landlords had the right to increase the price of the rent on a yearly basis based on the Consumer Price Index (CPI), the figure used to measure inflation.

The CPI rate effectively acted as an upper limit on how much rents could be increased if agreed to or mentioned on the contract.

So if inflation was at 9 percent and it was time to renew a rental agreement for another, landlords could in many cases increase the rent by 9 percent.

READ MORE: When is it legal or not legal for a landlord to increase the rent in Spain?

This clause in Spain’s Urban Leases Law is currently not applicable given the extension of the 2 percent increase limit.

According to ministerial figures, 3.5 million rental agreements in Spain are currently subject to potential increases.

The measure, which was due to expire this December, will be in place until December 31st 2023.

READ ALSO: Stricter requirements and screenings: Why it’s getting harder to rent in Spain

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PROPERTY

How does Spain’s new website to find cheap homes up for auction work?

Spain’s Tax Agency has created a new web page where you can find great bargains on properties sold at auction. Here’s what you need to know.

How does Spain's new website to find cheap homes up for auction work?

If you’re looking for a property to buy in Spain, one option you may want to consider is buying a home at auction, where you will often pay below the market value.

In Spain, the Agencia Tributaria or Tax Agency owns many properties, most of which have been repossessed or seized due to outstanding debt.

Many of these properties are put up for auction, enabling you to get some great bargains. Up until now, it has been difficult to find out when these auctions are held and the details of the homes being sold, but recently the Agencia Tributaria launched a new web page providing all this information.

The page provides details on all the properties in all the different provinces across the country and is dedicated to the sale of homes, garages, plots of land and commercial spaces with prices from just €20,000. You can access the site here

When you get to the page, simply click on the province that you’re interested in and you’ll find a list of all the properties to be sold at auction there, including photos, information on the size and number of rooms, a description, and a guide price.

The site will also give you financial information such as the minimum bid amount, the auction value and an appraisal of the property.

When you find some properties that you’re interested in, you can go and log-in with your [email protected] PIN to save them to your favourites list and receive notifications to your phone about the date of the auction.

READ ALSO: How to save lots of time on official matters through Spain’s online [email protected] system

According to property giant Idealista in order to place a bid, you must pay 5 percent of the starting price and when the auction is over, if you are the highest bidder, you will have to pay the remaining amount within a particular time frame. You can pay this in cash or through a mortgage. 

Be aware that you may also have to pay several fees, as well as the price of the property such as the Patrimonial Transfer Tax and Tax on Documented Legal Acts. 

If you register on the Auction Portal with your digital certificate or a username and password, you will also be able to see the bids that have already been made on the home, as well as the cadastral reference. You may also be able to place provisional bids ahead of time.

For those who are unsure of how the auction process works in Spain or are nervous about going to their first auction, the Tax Agency website also details all the auction and bidding procedures. For any other information that you can’t find online, you can call 91 598 63 34.

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