Iberian Rental Housing Systems – Legal changes in
Portugal and Spain after the crisis
Maria-Olinda Garcia
Faculty of Law – Coimbra University, Portugal
ogarcia@fd.uc.pt
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TENLAW: Tenancy Law and Housing Policy in Multi-level Europe
2012-2015
This project has received funding from the European Union's Seventh Framework Programme
for research, technological development and demonstration
under grant agreement no 290694
http://www.tenlaw.uni-bremen.de/
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Portuguese and Spanish private rental housing Laws
• Housing is not under the EU Treaty
• Importance of national laws:
– For foreign investors
– For foreign workers
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Portugal and Spain
housing characteristics in common:
(Censos
2011)
Portugal
Spain
Owner-occupied
dwellings
78%
80%
Rented
17%
15%
Vacant
12%
13%
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Brief Historical Background
Portugal
Spain
Tenants very protected:
- Rents frozen
- Landlords did not have
the right to terminate the
contracts
Until 1990
Until 1985
Short-term rental
agreements allowed
After 1990, minimal
duration 5 years
- Between 1985 and 1994,
minimal duration: 3 years
- After 1994, minimal
duration: 5 years
Old and new legal
frameworks co-exist
yes
yes
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Urban Lease Acts after the crisis
Portugal
Act n.31/2012
Spain
Act n.4/2013
Duration of the contract
There is no minimal
duration
Minimal duration : 3 years
Landlord’s rights to
terminate the contract
If the tenant does not pay
the rent for 2 months;
- No need to go to court to
terminate the contract
After 1 month delay:
- Court order (but not a
judicial decision)
Eviction process faster
Extra judicial process
Faster judicial decision
Registration of the contract ----------------
If the contract is not
registered, when the
dwelling is sold the rental
agreement ends.
Tenant pays a penalty to
terminate the contract
before the agreed time
T. cannot terminate the
contract before 6 months
have elapsed
T. cannot terminate the
contract before 1/3 of the
agreed time has elapsed
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Consequences of the new legislation
• - Rising supply of dwellings for rent
• - Uncertainty about current and future effects of the new
rules :
•
- lack of official data
•
- inconsistent information:
•
- increasing number of people interested in buying
a dwelling
•
- value of rents not going down
•
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(Eurostat 2013)
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Will the new legislations be decisive in increasing the percentage
of rented dwellings?
• - From a tenant’s perspective:
• - both systems do not combine correctly stability and
flexibility
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