Due to the economic impact of COVID-19 and the consequent reduction in the income of thousands of Spaniards, on April 01st 2020, the Government approved measures published in the Official State Gazette (BOE) with aids to vulnerable population that struggle to pay the rent of their residential lease.
Unemployed, citizens affected by an ERTE (Temporary File of Regulation of Employment) or with reduced working-hours to provide care, and self-employed who declare themselves in a vulnerable situation cannot be evicted. They will benefit from an extension of their lease agreements and will have access to microcredits guaranteed by the State to pay pending rents. In addition, if the landlord owns more than 10 properties, the tenant may request a moratorium or a lease condonation.
Measures approved in the Royal Decree-Law
-Extraordinary extension of 6 months of the lease agreement that expire in the period from the entry into force of this Royal Decree-Law to 2 months after the end of the state of alarm.
-Automatic moratorium on lease payment for tenants in vulnerable situations if the landlord owns more than 10 homes.
-Extraordinary suspension of eviction and launch procedures.
-State microcredit at 0% interest rate for the payment of up to 6 month leases.
-Who will be able to access to these aids for being in a vulnerable situation due to the covid-19? Anyone who, in the month prior to the request for the moratorium:
- Are unemployed, in an ERTE or those with reduced working hours due to the care of family members.
- Entrepreneurs, or people in similar circumstances, who have suffered a significant reduction in their income.
Requirements to be recognized as a vulnerable person:
Apart from being in any of the above situations, that the total income of the members of the household family do not reach: In general, three times the limit of the monthly Public Indicator of Multiple Effects Income (IPREM) € 1,645 / month, which may be increased 0.1 times for each dependent sibling or for a dependent family member over 65 in the family unit (0.15 if it is a single-parent family).
If any members of the family unit have a declared disability over 33% or 65%, the limit will rise 4 or 5 times respectively.
That the lease, plus basic expenses and supplies, is equal to or higher than 35% of the net income received by all the members of the household family.
That no member of the family unit owns a property or has one in usufruct in Spain. To qualify for the aid, they will have to prove that they are unable to access that property.
Documents a tenant must submit to the landlord to proof their economic vulnerability:
- Unemployed: the certificate issued by the entity managing the benefit.
- Cessation of activity of self-employed workers: the certificate issued by the State Agency for Tax Administration or the competent body of the Autonomous Community.
- People who live in the household: family book, and proof of cohabitation for the people registered in the house in the previous 6 months. Declaration of disability or dependency.
If any of the documents cannot be provided, a responsible declaration that justifies the reasons that prevent the lease payment would suffice. When the alarm state ends, there will be a 1-month period to submit any missing documents. Deadline to request the moratorium
From the day after the publication of Royal Decree-Law 11/2020 and up to one month from its entry into force, that is, until May 2nd, 2020.