The rental contracts for luxury homes in Spain have some unique legal characteristics that are important for both owners and potential renters to understand. Whether you own a luxury property or are interested in renting one out for the long term, it’s crucial to be aware of the specific details that come with the rental agreement for these properties, which Spanish law refers to as “sumptuous property”.
Firstly, let’s take a look at the requirements that the rental contracts for luxury homes in Spain must meet to fall under this category, as defined by the current Urban Leasing Act (LAU):
- The property (house) must be larger than 300 m2, or
- The annual rent must be higher than 5.5 times the annual Spanish inter-professional minimum wage, which is currently €1,080 for the year 2023. This means that the annual rent must be at least €71.280,00 (equivalent to €5.940,00/month)
If either of these conditions is met, then the mandatory provisions of the L.A.U. do not apply. This means that the parties are free to agree on their own terms and the LAU rules only serve as supplementary clauses.
The most important consequence of not being subject to the mandatory provisions of the LAU is that there is no minimum rental period of 5 years (or 7 years if the landlord is a company). Therefore, it is crucial to draft rental contracts carefully to determine the rights and obligations of both parties.
The rental contract for luxury homes in Spain is a complex and serious matter that requires both landlords and tenants to be fully aware of their rights and obligations. It is highly recommended to seek advice from a qualified professional before entering into this type of contract. At Bravo Legal, we offer this service and would be happy to provide you with more information about our fees and services without any commitment. Please fill out the following form to get in touch with us.