Author: David García
The regulations regarding the minimum duration of the rental contracts have changed several times in the last few years.
That is why the date of signing the contract will be decisive to know what the minimum lease term will be that was legally in force at that time and that will not vary during the term of the rental contract despite the law being reformed.
Leases signed between 23 January 2019 and 5 March 2019
Lease contracts concluded during this month and a half of 2019 have a minimum initial duration of three years for the lessor, without prejudice to the possibility of the lessee to withdraw from the lease with 30 days’ notice when the first six months have elapsed.
Article 9 of the Ley de Arrendamientos Urbanos in force during this period
1. The duration of the lease shall be freely agreed by the parties. If it is less than three years, when the contract expires, it will be compulsorily extended by annual instalments until the lease reaches a minimum duration of three years, unless the lessee declares to the lessor, at least thirty days prior to the date of termination of the contract or of any of the extensions, that he does not wish to renew it.
However, from the second year of the contract, the lessor may cancel it if he needs to occupy it himself, his spouse or any of his first-degree relatives in the event of separation, divorce or marriage annulment with a final judgement and this possibility has been contemplated in the signed contract.
Three years of compulsory extension and one more year of legal extension.
When the three-year compulsory extension period is about to expire, either of the two parties may withdraw from the contract with at least 30 days’ notice.
If this is not done, the contract will be extended for a further year.
After this year, the contract will enter into tacit renewal, which means that the stipulations of the original contract will remain in force, but it will no longer be governed by the Urban Leases Law but by the Civil Code and the lease will be extended for periods equivalent to the periodicity of the agreed rent (annual or monthly).
Leases signed between 19 December 2018 and 22 January 2019
The rule in force at that time provided that the duration of the lease could be agreed upon as freely agreed by the parties.
However, if the agreed term was less than five years in cases where the lessor is a natural person and seven years in the case of a legal entity, the contract will have that duration as long as the tenant does not express their wish to withdraw from it, a right that they may exercise at any time with 30 days’ notice, provided that the first half year of the contract has elapsed.
During the first five years of the contract, the lessor has the right to terminate the contract after the second year only if he needs the property for himself, for his spouse or for another first-degree relative in the event of separation, divorce or marriage annulment with a final judgement.
After the initial five years, it can be extended for a further three years.
When five years have elapsed in the case of a natural person and seven years in the case of a legal entity, and neither party has expressed its intention to withdraw from the contract with 30 days’ notice, the contract will be extended by annual instalments for up to three more years.
Article 10 of the Law on Urban Leases in force at that time
1. If on the expiry date of the contract, or of any of its extensions, after at least five years have elapsed, or seven years if the lessor is a legal entity, neither of the parties has notified the other, at least thirty days prior to that date, of its intention not to renew the contract, the contract shall necessarily be extended for a further three years.
From the eighth year onwards, if neither of the two parties express their wish not to renew the contract, the contract is tacitly renewed, which means that the contract agreed between the parties remains in force, but instead of being governed by the Urban Leases Act, it is directly subject to the Civil Code. Its duration will correspond to the type of rent that has been specified in the contract, so that, if it has been agreed on a monthly basis, it will be renewed month by month, and, if it is stipulated annually, it will be every year.
Leases signed between 6 June 2013 and 18 December 2018
In this case, rental contracts signed in this period will have the duration agreed between both parties, which will be extended on a mandatory basis for the lessor up to three years.
After the first six months of the contract, the tenant may terminate the contract at any time, provided that at least one month’s notice is given.
As for the landlord, he can only request the termination of the lease after the second year if he needs the property to use it as a home for himself, his spouse or his first-degree relatives when there is a final divorce or marriage annulment sentence.
Once the three-year compulsory extension period has expired, if neither of the parties objects with at least one month’s notice, it shall be extended for a fourth year.
Article 10. Extension of the contract of the Urban Leases Act in force during that period.
1. If on the expiry date of the contract, or of any of its extensions, after at least three years have elapsed, neither of the parties has notified the other, at least thirty days prior to that date, of its intention not to renew it, the contract shall necessarily be extended for a further year.
Finally, at the end of the four years, the contract shall be tacitly renewed. It will remain in force with its original stipulations, but will no longer be subject to the Law on Urban Leases but to the Civil Code. It will be renewed for periods equivalent to the agreed rent, i.e. if an annual amount of rent was agreed, it will be renewed for annual periods, and if a monthly amount was agreed, it will be renewed for monthly periods.
Lease agreements signed between 1 January 1995 and 5 June 2013
Lease contracts signed during this period will have the duration freely agreed between the parties, but if it is less than five years, the lessee will have the right to extend it on a mandatory basis for the lessor up to five years.
However, there will be no such compulsory extension of the contract for the lessor in the event that it has been expressly stipulated that the dwelling must be occupied before the end of five years in order to be used as a permanent dwelling for himself.
Article 9 of the Law on Urban Leases in force at that time.
3. The compulsory extension of the contract shall not be applicable when, at the time of its conclusion, the need for the lessor to occupy the rented dwelling before five years have elapsed in order to use it as a permanent dwelling for himself is expressly stated in the contract.
At the end of five years, both the lessor and the lessee may withdraw from the contract by giving at least thirty days’ notice. If they fail to do so, the contract will be extended by annual instalments for a further three years, unless either of the two parties gives 30 days’ notice of their intention to withdraw from the contract.
After eight years have elapsed without either of the parties having communicated their intention to terminate the contract, the contract will enter into tacit renewal and will be extended for periods equivalent to the amount of the agreed rent, which is usually annual or can also be monthly.
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