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Measures to protect tenants and homeowners during the state of alarm.

Measures to protect tenants and homeowners during the state of alarm in Spain,

The Royal Decree Law 37/2020 of 22 December on urgent measures to address situations of social and economic vulnerability in the field of housing regulates, on the one hand, the protection mechanisms for occupants of homes that are in a vulnerable situation, and on the other hand, the right to compensation for owners and tenants affected.

Mechanisms for the protection of tenants and occupants

a). Launch suspension incident: the suspension during the alarm state of the eviction procedure and launch of rentals is regulated in the case of economically vulnerable persons without a housing alternative.

b). Guarantee of water and energy supply to vulnerable consumers.  It is guaranteed by law that during the current state of alarm the supply of electricity, natural gas and water to those consumers who are vulnerable consumers cannot be suspended.

Right of compensation of landlords and property owners

The owners and landlords affected by the extraordinary suspension in case of vulnerability of the tenant, squatter or occupant, will have the right to request compensation when the competent administration, within 3 months from the date of the report of the social services to address the situation of vulnerability and providing decent housing, has not adopted such a measure. The compensation will consist of the average value that would correspond to a housing rent in the environment in which the property is located, determined from the reference indexes of the price of housing rent.

Based on the Double Taxation Agreements signed by Spain, where is the income derived from real estate taxed owned by a non-resident?

All double taxation agreements signed by Spain follow the criteria of the OECD Model Convention. The income derived from real estate may be taxed in the State in which such assets are located.

This criterion applies regardless of the income obtained from the real estate, lease, use of apartment. etc.

This are the Income from real estate assets agreements.

What happens when we have to apply the internal laws of Spain and another country as an individual is a resident of both?

In the cases of residence in two countries, the agreement or treaty between the two countries should be consulted, if one is in place. These treaties establish rules to prevent that a person is considered a resident of both countries from a taxation viewpoint. In general, these rules state that an individual is a resident:

The period of validity of these certificates is one year.

However, the certificate’s validity shall be indefinite if the entity subject to tax is a foreign country, one of its political or administrative or local entities.

Of the country where he or she has a permanent residence. If he or she has a permanent residence in both countries, they are considered a resident of the country with which they hold the closest personal and economic ties.

If the above criterion does not determine residence, the individual is considered resident in the country where he or she usually lives.

If the individual lives habitually in neither or both, they are a resident of the country that gave them their nationality.

If they have dual nationality of both countries, or of neither, the Authorities in question will resolve the case by mutual agreement.

How can non-residence be accredited in Spain?

Non-resident status can be accredited by presenting a certificate of residency in another country issued by the tax authorities of that country.

The period of validity of these certificates is one year.

However, the certificate’s validity shall be indefinite if the entity subject to tax is a foreign country, one of its political or administrative or local entities.

Mesures of MORATORY in PAYMENT OF RENTAL

RDL 15/2020, of April 21, has regulated to mitigate the effects derived from the Covidien-19, MEASURES OF MORATORY in PAYMENT OF RENTAL of offices and business premises.

RDL establishes the possibility for tenants of business premises to request, within one month ending May 22, 2020, a moratorium on the payment of contractual rent, during the period of the state of alarm and its extensions for a maximum period of 4 months.