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Discover the Latest Changes of the New Urban Leasing Law 2019 in Spain

Just one year ago, at the end of December 2018, I was attending meetings with clients and colleagues from the real estate sector regarding the new Urban Leasing Law. We wanted to analyze and understand its changes and how they would affect every day life and the real estate sector.

The Royal Decree-Law 7/2019 of March 1, had a winding road for its approval. If you want to see the official text of the BOE click on this link.

The company ILP Abogados (a prestigious law firm in madrid) wrote an article on its blog where the changes that occurred in Royal Decree-Law 7/2019 are analyzed in detail. You can see his analysis here (In spanish)


We tell you that in the practical life of housing rental there were 3 important general changes:

  1. About the contract time and its extensions
  2. In the economic conditions (deposit and rent update)
  3. Other legal conditions (when a leased property is sold, the buyer must be subrogated to the rental contract)

What is the most important change in the new Urban Leasing Law 2019?

From our experience in the market, the most important change was the duration of the rental contract, which was established as follows:


Lessor Legal Entity   Natural Person
Initial Duration 7 years 5 years
Tacit Extension 3 years 3 years


What happens with the withdrawal of the rental contract by the tenant?

The tenant can withdraw from the lease once at least six months have elapsed, provided that they notify the landlord at least one month in advance. In this case, the tenant must compensate the owner with one month of rent for each year of the contract not fulfilled and periods of less than 1 year will produce proportional compensation. For example:


Pedro rented an apartment in Madrid for 1 year at a price of 1,000 euros per month. Five months go by and he decides to change flats, giving the owner 30 days notice that once the sixth month has passed he will leave. As he is missing half a year, he must compensate the owner with an amount of 500 euros, that is, half a month’s rent.


If you have any questions about the new Urban Leasing Law in force for the year 2019, call us at +34 630 511 855 (also whatsapp) or write to us at gustavo@gerah-realestate.es, we will be happy to help you.


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