Leases of property in Spain are regulated by Law 29/1994 of 24 November, by the contract agreement with both parties and the Civil Law.
We can advise you about all the legal and tax issues involved in rentals in order to provide you with some basic advice and also to protect your interests.
The drafting of a rental contract is VERY important.
This contract should at least include the following:
- Details of both parties; the landlord and the tenant.
- An accurate description of the property.
- The contract terms.
- The amount of rent and payment terms.
- The liability for utilities such as water, electricity etc. and other payments.
- The bank guarantee (optional)
- The deposit.
- An inventory of all the assets including the rental of the property.
Did you know that the contract term for property rental must be at least 1 year and up to 5 years and should be renewed yearly?
The landlord is obligated to do these renewals during the first five years, the only exception is for contracts with a duration of less than 12 months, the so called short term contracts.
These short terms contracts are mainly used for holiday rental occupations.
For business premises rentals, the parties are free to set any conditions suitable for their situation, as well as the rental term. However, did you know that the landlord is obligated to compensate his tenant for rental periods longer than 5 years?
The same applies if you have decided not to extend the rental.
This compensation could be waived if a certain clause is included in the contract.
You can find templates for rental contract, but most cases are not up dated, nevertheless we strongly recommend you to seek advice at a lawyer, who is specialised in this matter and who can draft an up to date contract which is tailored to meet your personal requirements.
An appropriate contract can save you a lot of money and problems in the future.
At Corral & Alcaraz Law Firm we are specialised in and familiar with all legal and financial aspects of property rentals.