Spain removes crisis measure of extending rental contracts with same conditions

Spain has updated the set of measures in place to alleviate the effects of soaring inflation last year.

The new anti-crisis package approved by the Spanish government removes the possibility of extending by six months rental contracts that expire keeping the same conditions.

The executive's economy minister, Nadia Calviño, defended the measure by pointing to the new housing law which has recently come into force, setting the limit of contract increases at a maximum of 2% in 2023 and of 3% in 2024. 

"In the past few years, we have considerably strengthened the legal framework to protect tenants, focusing especially on those vulnerable," said Calviño.

Yet, these marginal increases only apply to rental contracts already in place. The removal of the measure means that from July 1, rent prices can be increased without limit if they will be renewed with new contracts and not with a renewal of the same contract, a possibility that some allow for a certain period of time.

Excluding this measure from the renewed anti-crisis package has seen criticism from Spain's junior coalition partner, left-wing Podemos, as well as figures from the new left-wing platform, Sumar: "Outraged to say the least," said Alejandra Jacinto, a housing expert with Sumar.

The pack of measures also includes extending the ban on evictions of vulnerable households until the end of the year. 

Food and transport

The council of ministers also extended the reduction of VAT on basic foods and discounts on public transport.

VAT on basic foods will continue at 0% and that of oils and pastes at 5%.

The aid package will subsidize at least 50% of public transport passes, which regional governments and local councils manage.

In addition, fuel bonuses for truck drivers will also be extended, which sees discounts of 10 cents per liter of fuel until September and 5 cents in the last quarter of the year.

In Barcelona, it will mean that T-Usual and T-Jove transport cards will still have a 50% reduction in price, conditional on the 20% provided by the Barcelona Transport Area (ATM) body, which topped up the Spanish government's 30% subsidy.

The Rodalies commuter rail network will remain free for the rest of the year with the extension of the royal decree.