Tanca Tanca

Housing Glossary

You will find information here on all topics relating to housing in Barcelona

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Accrued interest

The interest applied as a penalisation when the debtor does not comply with repayment obligations. The amount must be established in the contract.

Active supermortgage

This allows the client to choose their loan's benchmark index (MIBOR at three months, six months or a year) so that payment can benefit from lower interest rates sooner.

Adaptable instalment

Characteristic of UCI superloans that allow the borrower to not pay one instalment a year for the first three years if there are problems due to holidays, extraordinary expenses, etc.

Advanced cancellation fee

A commission arising from the financial risk involved in the advanced cancellation of an operation. The applied commission compensates the financial institution for its financial losses.

AEDE

Direct state aid for paying the deposit on a property.

Affordable housing

Group of social housing or dwellings from social renovation projects that are sold or rented at below-market prices.

Affordable rent

The cost of renting these dwellings is below market prices after being included in operations concerning the rented flat pool, social renovation or social housing promotions.

Amortisation

Payment made to repay a loan.

Amortisation period

The duration of the loan. The contract establishes the date of the first and last payments. The longer the period, the lower the payments are, but the higher the interest. You therefore pay more in the end. The monthly instalment should not exceed 35% of your net income.

API

Estate agent. A qualified professional who acts as an intermediary between the two interested parties to facilitate the signing of a real estate contract, which can be a rental agreement, a sales agreement or another similar contract. They usually charge a percentage of the sales price as compensation or commission.

Applicant

A citizen who makes a registration application to the Barcelona Social Housing Applicants Registry, and who represents the other members of the dwelling unit included in the application.

APR

Annual Equivalent Rate. Effective annual cost of the mortgage in terms of interest, commissions and the repayment period. To compare loans, it is not enough to just look at the lowest APR, you also have to compare the conditions, the repayment period and the distribution of instalment payments.

Arbitri municipal de plusvàlua

Former denomination of the capital gains tax on landed property.

Assessment

The value of a dwelling certified by a specialised assessment company, in accordance with the mortgage market law. This certificate not only indicates the real value of the property, it also serves as a reference for obtaining the necessary financing.

Authorisation

Document in which the owner authorises the tenant to carry out building work in the dwelling's interior.

Close glossary

Housing Offices and Energy Advice Points (PAE) continue to operate by phone and online to help prevent the spread of Covid-19. Check how to access services here.

If you live in a rented home

1. How can I know if I meet the requirements for accessing the measures of suspension of eviction, moratorium, reduction or postponement of payment of the rent?

To be eligible for these measures, you have to meet all the following requirements:

  • The renter (tenant) must have a habitual home rent agreement subject to the Urban Leases Act nº 29/1994 of 24 November, which excludes rent agreements for uses other than housing (premises, shops, professional offices, temporary housing agreements, etc.).
  • Any renter (tenant) who is in a situation of economic vulnerability in accordance with the definition laid down in Art. 5., for which it will be necessary to comply with each and every one of the following requirements:
    • That the person obliged to pay the rent passes into a situation of unemployment or is affected by a Temporary Redundancy Plan (ERTO) or has seen their working hours reduced due to care obligations, in the case of entrepreneurs, which signify a substantial loss of their income.
    • That the sum total of the income of the family unit, calculated in the month prior to the application for moratorium, does not exceed the following limits established in Art. 5 RD 11/2020:
      • 3 times the monthly IPREM (Public Multiple-Effect Income Indicator). This limit will be increased by 0.1 times the IPREM for each dependent child, (or, in the case of single-parent family units by 0.15 times the IPREM per child), and by 0.1 times the IPREM for each member of the family unit over 65 years of age.
    • 4 times the IPREM if one or more members of the family unit is certified a degree of disability greater than 33%, or is in a situation of dependence or illness which in a certified manner permanently disables them from any work activity. This limit will be increased by 0.1 times the IPREM for each dependent child, (or, in the case of single-parent family units by 0.15 times the IPREM per child).
    • 5 times the IPREM if the person obliged to pay the rent suffers from cerebral palsy, mental illness or intellectual disability, with a recognised degree of disability equal to or greater than 33%; is a person with physical or sensorial disability, with a recognised degree of disability equal to or greater than 65%; or suffers from a serious illness which in a certified manner disables that person or their carer from performing any work activity.

 

Reference: 1 monthly IPREM

537,84 €

3 monthly IPREM 

1.613,52 €

4 monthly IPREM

2.151,36 €

5 monthly IPREM 

2.689,20 €

 

  • That the rent, plus the expenses and basic supplies of the home (electricity, electricity, gas, heating oil, telephone, community fees) are equal to or greater than 35% of the net income of the family unit.

€ rent+€ supplies >= 35% income

  • That no member of the family unit living in the home is the owner or usufructuary of any home in Spanish territory. This requirement will not apply when either of the following circumstances occur:
    • When the right devolves on a proportional part of the home and this has been acquired by succession mortis causa.
    • When the members of the family unit, in spite of being owners of a home located within Spanish territory, cannot make use of it due to separation or divorce, for any other reason beyond their control or when the home is inaccessible due to disability of its owner or of another member of their cohabitation unit

 

2. What happens if my rent agreement expires during the State of Alarm or in the near future?

Any person who holds a rent agreement on their habitual residence which has an expiry date between 2 April and up to two months after the termination of the State of Alarm may request an extraordinary extension of the rent agreement for a maximum period of 6 months. This extension must be accepted obligatorily by the homeowner, unless the parties reach another type of agreement. You can find a request form here.

This possibility for the tenant is binding on the landlord, whether a legal entity or natural person.

If the holder’s rent agreement terminated before 2 April, the extension of the agreement can also be requested, but in this case, in being a date prior to the RDL 11/2020 the landlord does NOT have the obligation to accept it.

3. My rent agreement terminates in the month of June, for example, but now I have been made redundant and I cannot pay. What can I do? Can I request the moratorium or postponement? Until when? And can I request the 6-month extension of the agreement?

If you have lost your employment as a consequence of the sanitary emergency generated by Covid-19 and you fall into the cases of unforeseen economic vulnerability defined in RDL 11/2020, you can request a moratorium or postponement of the rent of your home. The request is of obligatory acceptance by large-scale landlords and public housing companies or entities, and is voluntary for other homeowners, unless other types of agreements of postponement or total or partial cancellation of the debt have been reached. In the case of large-scale landlords and public companies or entities, the moratorium will apply for a maximum period of 4 months and the payment of the accumulated debt will begin to be fragmented from the monthly instalment following the termination of the State of Alarm.

The moratorium or postponement can be requested within three months of the entry into force of RDL 11/2020, that is to say, until 2 July 2020.

The extraordinary 6-month extension of the agreement can also be requested, provided this terminated within the period between 2 April and the end of the two months following the termination of the State of Alarm. You can find a request form here.

 

4. I have proposed to my landlord an agreement to pay the rent instalments during these months when I cannot work and he has told me he does not accept it. What can I do?

If the landlord does not accept the proposed agreement, you can access the Transitional financing aids guaranteed by the State. The maximum amount is 6 monthly rent instalments with a return period of 6 years, which exceptionally could be extended for 4 years more.

This programme of ICO credits is currently pending activation. We will update this information at the moment they are implemented.

5. I own property/ies and my tenant/s cannot pay me the rent. Am I obliged to reach an agreement? Can I bring a legal action by filing a claim?

If the landlord has at least 10 homes or a number of homes which constitute a built-up area of more than 1,500 m2, it will be obliged to accept the 50% rent reduction or the moratorium in the terms laid down in RDL 11/2020 proposed by the tenant if they are in a situation of vulnerability as a consequence of the sanitary emergency generated by Covid-19.

As long as the State of Alarm persists, a judicial claim for eviction can be submitted to the courts, but it is necessary to know that all the procedural stages are suspended. Consequently, we recommend that the landlord accept an agreement, reduction or moratorium in order to avoid situations of litigation and a possible loss of housing. We remind landlords that we have various programmes of mobilisation of apartments towards affordable rental such as the Rental Housing Pool.

6. How can I know if the proprietor of my home is a large-scale landlord? 

You can submit a request for moratorium, postponement or reduction by sending this form by bureaufax to the landlord, who will reply telling you whether or not they are a large-scale landlord, and therefore whether or not they are obliged to apply the conditions laid down in RDL 11/2020 for a moratorium or reduction of the rent.

In any case, if you want to verify whether the owner of your home is a large-scale landlord, that is to say, if they own more than ten urban buildings (excluding garages and storerooms) or a built-up area of more than 1,500 m2, you can request an index of homeowners from the Land Registry, providing the details of the homeowner. This document constitutes the list of registers of that landlord’s properties. You could then request simple Registry notes on those properties to know the characteristics of each one.

7. If the proprietor of my home is a company and I cannot pay the rent, what can I do? What can I ask for? 

RDL 11/2020 rules that if the tenant has difficulties in paying the rent and meets the requirements of economic vulnerability (see question 1), they may request from the proprietor, whether this is a company, among others, a temporary and extraordinary postponement of the rent, provided no agreement on postponement or total or partial cancellation of the rent has been reached between the two parties.

  • If there is no voluntary agreement, within a maximum of 7 business days of the tenant’s request the proprietor company must announce its decision between these two options:
  • A 50% reduction of the rent as long as the State of Alarm persists, and the following monthly instalments if that period proves to be insufficient in relation with the situation of vulnerability caused by Covid-19, with a maximum of 4 months.
  • A moratorium of payment of the rent, automatically applicable as long as the State of Alarm persists, and the following monthly instalments (which can be extended one by one), if that period proves to be insufficient in relation with the situation of vulnerability caused by Covid-19, with a maximum of 4 months. This moratorium will observe the requirements laid down in Art. 4.2.b of RDL 11/2020.

This request must be made within three months of the entry into force of RDL 11/2020 (2 April 2020), that is to say, until 2 July 2020. Here you have a form for submitting the request.

8. I cannot pay the rent and my landlord is telling me to leave. What can I do? Can there be evictions in the current situation?

RDL 11/2020 provides for mechanisms for reaching agreements of moratoria, cancellations or reductions of rent for tenants of habitual residences who have found themselves forced into a situation of economic vulnerability as a consequence of the sanitary emergency caused by Covid-19.

If it is not possible to reach a voluntary agreement between the parties, the regulations have included the obligation of accepting, on request, moratoria or reductions of rent in the case of large-scale landlords, public housing companies or entities, along with State-guaranteed interest-free transitory financial assistance to help with these situations.

If the proprietor is not a large-scale landlord and does not accept any proposal, it can only have recourse to the judicial route to demand payment or eviction: it may file the claim, but during the State of Alarm all the procedural stages are suspended.

The tenant may apply for assistance via an ICO credit to cover this rent owed. This programme of ICO credits is currently pending activation. We will update this information at the moment they are implemented.

9. I have lost my job or my income has fallen and I cannot pay the rent. Are there any types of rent assistance?

RDL 11/2020 provides for the creation of a new rent assistance programme named “Assistance programme for helping to minimise the economic and social impact of Covid-19 in habitual-residence homes”.

This programme will be aimed at granting rent assistance, by means of direct adjudication, to people renting their habitual residence who, as a consequence of the economic and social impact of Covid-19, have transitional problems in paying their rent and who meet the established requirements of vulnerability. Without prejudice to other actions, these forms of assistance will have the purpose of tackling the difficulty of returning the transitional financing aids (interest-free ICO microcredits). This assistance programme is currently pending development by means of a Ministerial Order and by way of the competent bodies of each Autonomous Community. We will update this information at the moment the programme is implemented.

 

10. What does a “rent moratorium” mean? And a “temporary rent postponement”? 

A rent moratorium or postponement means that the unpaid rent bills will have to be paid later, on a pro-rata basis during the remainder of the rent agreement.

 

11. Who can ask for a rent moratorium?

A rent moratorium can be requested by any tenant with a rent agreement on their habitual residence who is in a situation of unforeseen economic vulnerability, when their landlord is a large-scale landlord or a public housing company or entity.

If the proprietor is not a large-scale landlord, the tenant can negotiate a moratorium, but the owner is not obliged to accept it.

12. For how long can a rent moratorium be requested?

A rent moratorium can be requested during the period of the State of Alarm and, if necessary, during the following months, extendible one by one up to a maximum of 4 months.

13. When does a rent moratorium have to be requested? From when is it counted? Until when can I request it?

The tenant has three months from the entry into force of RDL 11/2020 to request the postponement of the payment of the rent owed, that is to say, it can be requested from 2 April 2020 until one month later, that is, until 1 July 2020.

14. How do I request a temporary postponement or moratorium of the rent?

A tenant who is in a situation of unforeseen economic vulnerability will have to contact the lessor/homeowner to request the automatic moratorium of the rent owed, ensuring that a record is made of the communication, explaining the situation of unforeseen economic vulnerability and certifying compliance with the requirements. You can find a standard document here.

15. How long do I have to wait to receive a reply?

Once the landlord has received the request for a rent moratorium, it has a maximum period of 7 business days (not counting holidays, Saturdays or Sundays) to inform the tenant of the chosen option of application between the two possible alternatives.

16. What does “being in a situation of unforeseen economic vulnerability” mean?

It means finding oneself in a case of economic vulnerability as a consequence of the sanitary emergency caused by Covid-19, which requires the joint occurrence of the following requirements

  • That the person obliged to pay the rent passes into a situation of unemployment or is affected by a Temporary Redundancy Plan (ERTO) or has seen their working hours reduced due to care obligations, in the case of entrepreneurs, which signify a substantial loss of their income, provided the sum total of the income of the family unit, calculated in the month prior to the application for moratorium, does not exceed the following limits established in Art. 5 RDL 11/2020 (see question 1).
  • That the rent, plus the expenses and basic supplies of the home (electricity, water, gas, heating oil, telephone and community fees) are equal to or greater than 35% of the net income of the family unit.

 

17. How do I have to certify the situation of unforeseen economic vulnerability?

To certify the situation of unforeseen economic vulnerability, the following documentation must be forwarded to the lessor (proprietor): 

  • Certificate of unemployment benefit issued by the responsible body, with the monthly amount to be received.
  • Certificate issued by the Inland Revenue Agency (AEAT) or the competent body of the Autonomous Community on the basis of the declaration of cease of activity declared by the interested party in the case of self-employed workers
  • Number of people living in the home, supplying:
    • Family register or certifying document of civil partnership.
    • Municipal registration certificate relating to the persons registered in the home, with reference to the moment of submission of the certifying documents and of the 6 previous months. You can carry out this formality by calling 010.
    • Declaration of disability, dependence or permanent incapacity for work activity.
  • Simple note from the index service of the Land Registry of all the members of the family unit.
  • Sworn declaration by the debtors that they comply with the established requirements to be considered lacking sufficient economic resources in accordance with this Royal Decree-Law. 

In the event that the applicant for the moratorium is unable to provide one of the above documents, it may be substituted by a sworn declaration including the express justification of the reasons related with the Covid-19 crisis which prevent their presentation, having to provide it within one month after the termination of the State of Alarm and any extensions of it.

18. Where can I request the municipal registration certificate?

For requesting the municipal registration certificate of a home, to the effects of being able to request a mortgage moratorium or rent moratorium or other forms of assistance established in the recent RDLs, an alternative circuit has been established as a consequence of the restriction of freedom of circulation of persons during the period of the State of Alarm (exclusively for requests for certificates to request a moratorium), in such a way that the applicant can make the request by telephone by calling 010 or online through the following link.

19. Where can I request the simple note from the index service of the Land Registry of all the members of the family unit?

The request for the simple note for certifying the situation of unforeseen social and economic vulnerability can be sent by e-mail to the Land Registry in which your home is registered or to any Registry of the municipality where you have your habitual residence, attaching of necessity a photocopy of the National Identity Document of the person for whom the information is to be issued, or, as the case may be, of all the members of the family unit.

20. What happens if I cannot obtain one or more of the documents required to certify the situation of unforeseen economic vulnerability?

In the event that the applicant for the moratorium is unable to provide one of the above documents, it may be substituted by a sworn declaration including the express justification of the reasons related with the Covid-19 crisis which prevent their presentation, having to provide it to the lessor or proprietor within one month after the termination of the State of Alarm and any extensions of it.

In the event of wanting to request the suspension of the eviction or ouster processes provided for in Art. 1 of RDL 11/2020 and being unable to provide one or more of the required documents, they may similarly be substituted by a sworn declaration and, when such documents are obtained, they must be submitted to the court within one month after the termination of the State of Alarm and any extensions of it.

21. My father lives with us. Do I have to take the amount of his pension into account to calculate the income of the cohabitation unit? What is understood by “cohabitation unit”?

According to Art. 5.2 RDL 11/2020, a cohabitation unit is formed by the tenant, his/her spouse not legally separately or a registered civil partner and the children, regardless of their age, who live in the home, including those linked by a relationship of wardship, guardianship or foster care.

Consequently, when assessing the income of the cohabitation unit, it is not necessary to take into account the income of the tenant’s father, or the spouse’s one, because they are not included in the said Article.

22. How does an agreement of temporary postponement of payment have to be formalised?

Art. 8 of RDL 11/2020 regulates the temporary and extraordinary postponement of rent payment but does not determine how these agreements are to be formalised.

Art. 1255 of the Spanish Civil Code permits the parties to establish any covenants, clauses and conditions they may consider appropriate, provided they are not contrary to the law, morality or public order. In this way, provided the said criteria are fulfilled, any amendments of the rent agreement reached between the parties will be valid, and such amendments must be added to the rent agreement by means of a document which will be annexed to the main agreement.

Therefore, the postponement agreement will have to be made in writing, since it amends a clause of the rent agreement, and it will have to incorporate the conditions and requirements of the temporary rent postponement.

At the present moment, and due to the State of Alarm, the contracting parties, the proprietor and the tenant, cannot physically meet to sign this agreement. For this reason, we recommend the following:

  • Waiting until the termination of the State of Alarm to sign the annex of the verbally agreed temporary postponement of the rent payment or, preferably, by another means (e-mails sent between the parties).
  • That the document be signed between the parties by means of e-mail (Arts. 1254 and 1262 Spanish Civil Code) and subsequently ratified by both parties. However, if the annex is signed by e-mail, in order to avoid problems regarding its contents, it will be necessary to certify that both parties received the e-mail and were aware of its contents.

In this link you can download a model agreement for the total remission, partial remission and temporary postponement of rent. 

23. What is a transitional financing aid?

It is a State-guaranteed interest-free ICO loan granted by a financial institution for a period of up to 6 years, extendible by 4 more years, with the exclusive purpose of rent payment.

24. Who can request a transitional financing aid?

Under Arts. 8 and 9 of RDL 11/2020, the persons who can apply for a transitional financing aid (a guarantee facility totally covered by the State in order for the banking institutions to offer transitional financing aids) are the following:

  • Art. 8. Any tenant who is in a situation of vulnerability (see question 1) and has not obtained any agreement on rent postponement with the landlord.
  • Art. 9. Any tenants who are in a situation of unforeseen vulnerability as a consequence of the expansion of Covid-19, in accordance with the criteria and requirements defined by way of an Order of the Ministry of Transport, Mobility and Urban Agenda, which will include in all cases, and as a minimum, the situations defined in Article 5 of the present Royal Decree-Law.

25. What are the conditions of transitional financing aids?

Art. 9 RDL 11/2020 creates a programme of transitional financing aids for households in a situation of social and economic vulnerability as a consequence of the progression of Covid-19, in order to offer affected persons the possibility of covering their rent payments by way of an agreement with the Official Credit Institute (ICO). Art. 9 lays down the following conditions:

  • These aids constitute a line of guarantees, furnished by way of the ICO, with total coverage by the State, for the banking institutions to offer transitional financing aids to persons in a situation of vulnerability.
  • The return period will be up to six years, exceptionally extendible by four more years.
  • Under no circumstances will these aids entail expenses or interest for the applicant.
  • These aids must be applied strictly to the payment of the rent.
  • These aids may cover a maximum amount of six monthly rent instalments.

26. How and where do I have to request a transitional financing aid? 

Las ayudas transitorias de financiación se deberán solicitar a las entidades financieras adheridas a la línea de Avales COVID-19 con modelo normalizado.

27. If I request a transitional financing aid (loan) to pay the rent I have not been able to pay, how do I have to return it? 

Under Art. 9 of RDL 11/2020, the transitional financing aid (credit) to cover the rent payment will have to be returned within 6 years, exceptionally extendible for 4 more years and with 0% interest.

 

28. What happens if I cannot return the aid? 

Art. 10 of RDL 11/2020 provides that natural persons who are tenants of a home and are in a situation of economic and social vulnerability may benefit from the Assistance Programme for helping to minimise the economic and social impact of Covid-19. That is to say, they can make use of this assistance to return a part of the loan.

The amount of this aid will be up to 900 euros a month and up to 100% of the rent, or, as the case may be, up to 100% of the principal and interest of the loan signed with the party which paid the rent of the habitual residence. At the present moment, the announcement of this assistance remains pending.

29. If I am a beneficiary of a transitional financing aid, is the postponement or fragmenting of the debt maintained?

No. If the tenant accesses the transitional financing aid programme, the postponement will cease to be effective.

30. I have an upcoming eviction date and I have no resources to find another home. Will the eviction be enforced? What can I do?

Each specific case has its own conditions:

  • In the first place, it has to be taken into account that all judicial proceedings are suspended during the State of Alarm decreed by the Government. Therefore, if the eviction date falls within this alarm period, the eviction will be suspended until the court sets a new hearing date once this State of Alarm has been raised.
  • In addition, once the termination of the State of Alarm has been decreed, any family units who are in a situation of unforeseen social or economic vulnerability as a consequence of Covid-19 and have no possibility of finding alternative accommodation may request from the court an extraordinary suspension of the eviction order, provided their eviction proceeding derives from a rent agreement subject to Act nº 29/1994 of 24 November and relates to their habitual residence. 

If you are in this situation, contact your Housing Office once the State of Alarm has terminated, or call 010.

31. Is the suspension of eviction for all the proceedings? For all the cases? 

No. This suspension measure will only apply to eviction proceedings which comply with each and every one of the following requirements:

  • The eviction must derive from a judicial eviction proceeding in progress referring to the respondent’s habitual residence.
  • The eviction must have its origin in a home rent agreement subject to the Urban Leases Act nº 29/1994 of 24 November.
  • The tenant must certify being in a situation of unforeseen economic or social vulnerability as a consequence of the effects of Covid-19 which makes it impossible for them to find alternative accommodation for themself and the persons with whom they cohabit.

 

It is considered that the tenant is in this situation of unforeseen economic or social vulnerability when they certify that they meet all the following requirements (laid down in Art. 5 RD 11/2020):

  • That the person obliged to pay the rent passes into a situation of unemployment or is affected by a Temporary Redundancy Plan (ERTO) or has seen their working hours reduced due to care obligations, in the case of entrepreneurs, which signify a substantial loss of their income. 
  • That the sum total of the income of the family unit, calculated in the month prior to the application for a moratorium, does not exceed the following limits:
    • 3 Times the monthly IPREM (Public Multiple-Effect Income Indicator). This limit will be increased by 0.1 times the IPREM for each dependent child (in the case of single-parent family units, it will be increased by 0.15 times the IPREM per child), and by 0.1 times the IPREM for each member of the family unit over 65 years of age.
    • 4 times the IPREM if one or more members of the family unit is certified a degree of disability greater than 33% or is in a situation of dependence or illness which in a certified manner permanently disables them from any work activity. This limit will be increased by 0.1 times the IPREM for each dependent child (in the case of single-parent family units it will be increased by 0.15 times the IPREM per child).
    • 5 times the IPREM if the person obliged to pay the rent suffers from cerebral palsy, mental illness or intellectual disability, with a recognised degree of disability equal to or greater than 33%; is a person with physical or sensorial disability, with a recognised degree of disability equal to or greater than 65%; or suffers from a serious illness which in a certified manner disables that person or their carer from performing any work activity.

 

Reference: 1 monthly IPREM

537,84 €

3 monthly IPREM

1.613,52 €

4 monthly IPREM

2.151,36 €

5 monthly IPREM

2.689,2 €

 

  • That the rent, plus the expenses and basic supplies of the home (electricity, water, gas, heating oil, telephone, community fees) are equal to or greater than 35% of the net income of the family unit.

 

€ rent + € supplies >= 35% income

  • That no member of the family unit living in the home is the owner or usufructuary of any home in Spanish territory. This requirement will not apply when any of the following circumstances occur:
    • When the right devolves on a proportional part of the home and this has been acquired by succession mortis causa.
    • When the members of the family unit, in spite of being owners of a home located within Spanish territory, cannot make use of it due to separation or divorce or for any other reason beyond their control.​

32. How do I request the suspension of the eviction or the proceeding?

  • If the judicial proceeding is in the enforcement stage and with a set eviction date: the duty solicitor will have to submit a writ to the competent court, annexing all the documentation referred to in Article 6 of the present RDL in order to certify this unforeseen situation of economic or social vulnerability.
  • When the Clerk of the Court receives the application for suspension, they will report it to the Social Services and, if the court determines that the circumstances provided for in the Act occur, it will issue a decree initiating the extraordinary suspension of the eviction proceeding with a retroactive nature from the moment when the event occurred and will determine the strictly necessary period in view of the Social Services report.
  • If the judicial proceeding does not have a set eviction date, either because a requirement to the respondent is in progress to opt within 10 days for any of the routes set forth in Art. 440.3 LEC, or because the hearing has not been held: in these cases, likewise, a writ will be submitted to the court annexing all the documentation referred to in Article 6 of the present RDL and requesting the suspension of the period or the suspension of the hearing until the Social Services adopt the measures they consider appropriate. The court will issue a decree of suspension of the proceeding with a retroactive nature from the moment when the event occurred and will determine the strictly necessary period. The suspension will have a maximum duration of SIX MONTHS FROM THE ENTRY INTO FORCE OF THE RDL (2/4/2020). Once this period has elapsed, the calculation of the days will be resumed in accordance with Art. 440.3 of the Civil Procedure Act nº 1/2000 of 7 January, or a hearing date will be set. 

33. Is the suspension period of judicial proceedings or the enforcement dates of eviction 6 months? When is the period counted from? 

Under RDL 11/2020, the extraordinary suspension of the proceedings will be declared for the time strictly necessary in view of the Social Services report, this being a maximum period of 6 months from 02/04/2020 in the case of suspension of judicial proceedings in which eviction has not been decreed or the judicial hearing has not been held.

 

34. I have the third eviction date set for the month of July. Can I apply for suspension? 

You can apply for suspension once the suspension of all the procedural stages has been raised due to the termination of the State of Alarm, provided each and every one of the following requirements are fulfilled: 

  • The eviction must derive from a judicial eviction proceeding in progress referring to the respondent’s habitual residence.
  • The eviction must have its origin in a home rent agreement subject to the Urban Leases Act nº 29/1994 of 24 November.
  • The tenant must certify being in a situation of unforeseen economic or social vulnerability as a consequence of the effects of Covid-19 which makes it impossible for them to find alternative accommodation for themself and the persons with whom they cohabit.

It is considered that the tenant is in this situation of unforeseen economic or social vulnerability when they certify that they meet all the following requirements (laid down in Art. 5 RD 11/2020):

  • That the person obliged to pay the rent passes into a situation of unemployment or is affected by a Temporary Redundancy Plan (ERTO) or has seen their working hours reduced due to care obligations, in the case of entrepreneurs, which signify a substantial loss of their income.
  • That the sum total of the income of the family unit, calculated in the month prior to the application for moratorium, does not exceed the following limits:
    • 3 Times the monthly IPREM (Public Multiple-Effect Income Indicator). This limit will be increased by 0.1 times the IPREM for each dependent child (in the case of single-parent family units it will be increased by 0.15 times the IPREM per child), and by 0.1 times the IPREM for each member of the family unit over 65 years of age.
    • 4 times the IPREM if one or more members of the family unit is certified a degree of disability greater than 33%, or is in a situation of dependence or illness which in a certified manner permanently disables them from any work activity. This limit will be increased by 0.1 times the IPREM for each dependent child (in the case of single-parent family units it will be increased by 0.15 times the IPREM per child)
    • 5 times the IPREM if the person obliged to pay the rent suffers from cerebral palsy, mental illness or intellectual disability, with a recognised degree of disability equal to or greater than 33%; is a person with physical or sensorial disability, with a recognised degree of disability equal to or greater than 65%; or suffers from a serious illness which in a certified manner disables that person or their carer from performing any work activity.

Reference: 1 monthly IPREM

537,84 €

3 monthly IPREM

1.613,52 €

4 monthly IPREM

2.151,36 €

5 monthly IPREM

2.689,2 €

 

  • That the rent, plus the expenses and basic supplies of the home (electricity, water, gas, heating oil, telephone, community fees) are equal to or greater than 35% of the net income of the family unit.

 

€ rent+€ supplies >= 35% income

  • Que cap membre de la unitat familiar que resideix a l’habitatge sigui propietari o usufructuari d’algun habitatge al territori espanyol. No serà d'aplicació aquest requisit quan es doni alguna de les següents circumstàncies:
    • Quan els membres de la unitat familiar, tot i essent titulars d'un habitatge dins del territori espanyol, no puguin disposar d'ell per causa de separació o divorci, per qualsevol altra causa aliena a la seva voluntat o quan l’habitatge resulti inaccessible per raó de la discapacitat del seu titular o d'un altre membre de la seva unitat de convivència.
    • Quan el dret recaigui sobre una part alíquota de l’habitatge i aquest s’hagi adquirit per successió mortis causa.

If you live in a home of your own property and you have a mortgage

1. What is the moratorium of mortgage instalments?

The moratorium is an instrument that permits adjourning the payment of mortgage instalments during the decreed State of Alarm. The suspension of the payment of monthly mortgage instalments has been approved for a period of three months, extendible by the Council of Ministers.

 

2. Who can apply for the moratorium of mortgage instalments?

  • The potential beneficiary is a mortgage debtor who is in one of the cases of economic vulnerability set forth in Royal Decree-Laws 8/2020 and 11/2020, provided the loan or credit agreements guaranteed with a property mortgage have been entered into for the purchase of:
    • The habitual residence.
    • Buildings associated with economic activities performed by entrepreneurs and professionals.
    • Homes other than the habitual residence which are being let and for which the individual mortgage debtor, proprietor and lessor of these homes has ceased to receive the rent since the entry into force of the State of Alarm decreed by Royal Decree nº 463/2020 of 14 March, or ceases to receive it until one month after the termination of the State of Alarm.
  • These same measures also apply to the principal debtor’s guarantors and sureties in regard to their habitual residence and in the same conditions as those laid down for the mortgage debtor.

3. Can my application for a moratorium of mortgage instalments be rejected?

No. It is obligatory. The application must be accepted and processed, and the grant of the moratorium can only be rejected if the established requirements are not fulfilled.

4. On how many instalments can I apply for the moratorium?

The suspension of the payment of monthly mortgage instalments has been approved for a period of three months, extendible by the Council of Ministers.

5. How do I have to return the amounts adjourned with the moratorium?

They must be returned on a pro-rata basis during the remainder of the life of the loan once the State of Alarm has terminated. This must be agreed in a notarial document once the State of Alarm has terminated.

6. In what conditions do the amounts of the suspended instalments have to be returned?

The moratorium entails:

  • The non-accumulation of interest during the suspension period.
  • The non-collection of default interest.
  • The non-application of the early maturity clause. The adjourned instalments are not considered matured.

 

7. What requirements have to be fulfilled to apply for the moratorium of mortgage instalments?

 

The applicant must be in a situation of economic vulnerability, that is to say, meeting each and every one of the following requirements:

  • That the potential beneficiary becomes unemployed, or in the case of entrepreneurs, or professionals, suffers a substantial loss of income or a substantial reduction of invoicing of at least 40%. To the effects of this Article, the consideration of entrepreneurs and professionals is given to individual persons who fulfil the conditions laid down in Article 5 of the Value Added Tax Act nº 37/1992 of 28 December.
  • That the sum total of the family unit in the month prior to the application for a moratorium does not exceed:
    • 3 Times the monthly IPREM (Public Multiple-Effect Income Indicator). This limit will be increased by 0.1 times the IPREM for each dependent child (in the case of single-parent family units it will be increased by 0.15 times the IPREM per child), and by 0.1 times the IPREM for each member of the family unit over 65 years of age.
    • 4 times the IPREM if one or more members of the family unit is certified a degree of disability greater than 33%, or is in a situation of dependence or illness which in a certified manner permanently disables them from any work activity. This limit will be increased by 0.1 times the IPREM for each dependent child (in the case of single-parent family units it will be increased by 0.15 times the IPREM per child).
    • 5 times the IPREM if the mortgage debtor suffers from cerebral palsy, mental illness or intellectual disability, with a recognised degree of disability equal to or greater than 33%; is a person with physical or sensorial disability, with a recognised degree of disability equal to or greater than 65%; or suffers from a serious illness which in a certified manner disables that person or their carer from performing any work activity.

 Reference: 1 monthly IPREM

 537,84 €

 3 monthly IPREM

 1.613,52 €

 4 monthly IPREM 

 2.151,36 €

 5 monthly IPREM 

 2.689,2 €

 

  • That the mortgage instalment, plus the expenses and basic supplies of the family unit’s habitual residence (electricity, gas, heating oil, running water, landline and mobile telecommunication services and community fees) is equal to or greater than 35% of the net family income.
  • That as a consequence of the sanitary emergency, the family unit has suffered a significant alteration of its economic circumstances in terms of effort of access to housing. It is understood that a significant alteration of the economic circumstances has occurred when the effort represented by the sum total of the mortgage burden, understood as the sum total of the mortgage instalments of the properties referred to in Article 19 of RDL 11/2020 on family income, has multiplied by at least 1.3.

 

8. What is understood by “family unit”? 

The household composed by the debtor, his/her spouse not legally separately or a registered civil partner and the children, regardless of their age, who live in the home, including those linked by a relationship of wardship, guardianship or foster care.

9. How do I have to apply for the moratorium of mortgage instalments?

The application must be submitted either online or in person to the financial institution with which the mortgage loan or credit was signed. The website of each institution contains a specific form which must be presented along with the specific documentation..

10. Where do I have to apply for the moratorium of mortgage instalments?

At the financial institution where the mortgage loan or credit was signed.

11. What documentation do I have to present to apply for the moratorium of mortgage instalments?

  • Certification of loss of income:
    • Certificate of unemployment benefit, with the monthly amount.
    • In the case of being an entrepreneur or professional and having ceased the activity, the certificate of declaration of cease of activity issued by the Inland Revenue Agency (AEAT) or the competent body of the Autonomous Community. 
  • Certification of persons living in the home:
    • Family register or certifying document of civil partnership.
    • Collective municipal registration certificate (minimum 6 months). You can carry out this formality by calling 010.
    • Declaration of disability, dependence or permanent incapacity for work activity, if applicable. 
  • Certification of ownership of the property
    • Simple note from the index service of the Land Registry of all the members of the family unit. The request for the simple note for certifying the situation of unforeseen social and economic vulnerability can be sent by e-mail to the Land Registry in which your home is registered or, as the case may be, to any of the Registries of the municipality where you have your habitual residence, attaching of necessity a photocopy of the National Identity Document of the person for whom the information is to be issued, or, as the case may be, of all the members of the family unit.
    • Deeds of sale of the habitual residence, the rented home or the building associated with the economic activity, if this is the case.
    • Granting deed of the mortgage loan or credit.  
  • If the mortgage moratorium is requested for a home being let (Art. 19.c):
    • Rent agreement. 
  • Sworn declaration of the debtors that they comply with the established requirements.

12. What happens if I cannot obtain one of the documents required to certify the situation of unforeseen economic vulnerability?

In the event that the applicant is unable to provide one of the documents, this may be substituted by a sworn declaration including the express justification of the reasons related with the consequences of the Covid-19 crisis which prevent their presentation. After the termination of the State of Alarm and any extensions of it, the applicant will have one month to submit any documents which have not been provided.

13. How is the moratorium of mortgage instalments formalised?

It will be formalised in a public deed, the notarial and registry expenses being on the financial insititutions' account. This deed is not subject to Transfer Tax and Stamp Duty (IAJD). During the period of the State of Alarm, no deeds can be formalised, due to the restriction of personal mobility.

14. Until when can I present the application for a moratorium of mortgage instalments?

APPLICATION PERIOD: Up to 15 days after the final date of the declaration of the State of Alarm.

 

15. When does the moratorium of mortgage instalments begin to count?

GRANT PERIOD: It must be implemented within a maximum of 15 days counted from the date of presentation of the application.

 

16. Does the formalisation of the application for a moratorium of mortgage instalments have any cost?

Yes. The expenses are on account of the creditor, in this case the financial institution. It is exempt from Transfer Tax and Stamp Duty (IAJD).

Share this content