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PROPERTY

What you need to know about Barcelona’s new rent caps

The Catalan government has passed a new law to try and tackle the problem of rising rents and greedy landlords, especially in Barcelona, by capping rental prices in neighbourhoods deemed to have a dearth of affordable housing.

Published: 23 May 2019 17:11 CEST
Updated: 22 September 2020 13:11 CEST
What you need to know about Barcelona's new rent caps
Photo: Joselyn Erskine-Kellie/flickr

Which areas are affected?

The declaration of a zone as an “unstable housing market” can be made by Barcelona’s City Council or the Housing department of the Generalitat (Catalonia’s regional government) if the area meets the criteria outlined in the law.

The zone is only declared after completion of a detailed study carried out by the relevant housing authority.

Smaller municipalities may, on their own initiative, request to be declared an unstable housing market and introduce the capping if they present a report justifying the status.

READ MORE: 

What’s the criteria?

In order to be categorized as an “unstable rental market” and subject to the new law, it must be shown that rents in the zone have experienced a “sustained” increase at a cost clearly above the average.

It can also be applied if it shown that the increase in demand outstrips the availability of affordable housing or if the prices rises have significantly risen above the reference index pricing of the area.

In those zones, the rental price will be capped at 10 percent above the price per square meter of the reference index.

No zones have yet been created but will be established in the coming months. Much of central Barcelona is likely to be affected.

Data published on El Periodico showed that between 2014 and 2016 alone rent had soared in Barcelona's most desireable neighbourhoods, rising a whooping 25 percent in  Diagonal and Poblenou districts and 33 percent in Torre Baró.

What’s the reference index of rental prices?

Known is Spanish as the índice de referencia and in Catalan as L’índex de referencia, the reference index is calculated according to bond price data on Incasól. It’s basically an average price worked out per square meter according to the exact location and general condition of the property.

But it is not an exact science, so if one property is in outstanding condition in a down-at-heel neighbourhood, it won’t necessarily be reflected in the index price.

To work out the reference index in a particular area, the Catalan housing department has a tool which calculates price based on square meterage, location and condition.

Exceptions for a view, garden or swimming pool

The price can rise above the 10 percent cap if the property has an “exceptional feature” such as a particularly desirable view or if the property comes with communal gardens or a community pool.

New build or refurb?

New-builds or recently refurbished apartments also come with an exemption, this time of 20 percent above the reference index within the first five years of construction work.

In order for a property to qualify for special treatment the owner must make an “exceptionality application”.

Could this affect my current rental contract?

The new law will insist that any annual rise in rents on current contracts be based according to the Competitiveness Warranty Index – Índice de Garantía de Competitividad (IGC) in Spanish – a government index designed to combat inflation and promote the competitive gains of Spain in relation to the European Union.

Effectively, that means annual rental increases can only rise by the rate recorded in the IGC, which currently stands at -1.5 percent. Tha doesn’t mean that your rent will decrease it just means it will be frozen until such a time as the rate rises above 0 percent.  

When will the rent caps come into force?

It could still be months away.

The measure, which has been brought in by Catalonia’s regional government needs to be ratified by parliament within 30 days. Even then it could yet be appealed before the Constitutional Court.

Authorities will then begin studies to zone neighbourhoods where the rental market is unstable.

READ MORE: What you need to know about Spain's new rental laws

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PROPERTY

BBQs, nudity and plants: What are the balcony rules in Spain?

Though many people hang laundry, plants, and flags from their balcony, in Spain the rules on what you can and can't do on 'el balcón' are not well-known.

Published: 8 May 2024 17:13 CEST
Updated: 11 May 2024 08:31 CEST
BBQs, nudity and plants: What are the balcony rules in Spain?

Imagine the scene: you’ve just bought or signed the lease on your dream apartment. It’s bright and airy, with plenty of space, and even has a nice-sized balcony to get some fresh air on. You can do whatever you want there, right? 

Not exactly. In Spain the rules on what you can and can’t do on a balcony (even if it’s private) depend on a few factors, namely the regional and local rules, as well as getting the approval of the building’s homeowner’s association – known in Spain as la comunidad.

Some of them might just surprise you.

READ ALSO: ‘La comunidad’: What property owners in Spain need to know about homeowners’ associations

There are four main things or activities on balconies that could potentially put you on the wrong side of the local rules and even get you fined: barbecues, plants, laundry, and flags.

In all cases (even if you don’t think you’re breaking any rules) you’ll generally need to consider two things: firstly, does this affect or change the building’s façade? And secondly: will la comunidad allow it?

Barbecues

In Spain there is no national law prohibiting barbecues on private property, so in principle it is legal as long as the barbecue is lit in a private space such as your own balcony, garden or terrace, and not a shared space.

Often in Spain, the roof (usually referred to as la terrazza) is a shared space people use for storage and hanging their laundry, so be sure to check with the comunidad.

In terms of your own balcony, however, although there’s no law saying outright you can’t have a barbecue, you’ll need to take into account the rules and regulations in force in each locality or region. There may also be specific rules within the building that long-term homeowners have developed over the years.

As we will see, many of these low-level regulations are delegated to local governments and town halls in Spain, so the answer to these sorts of questions is usually: it depends where you are.

However, according to Article 7 of Spain’s Horizontal Property Law, “the owner and the occupant of the flat or premises are not allowed to carry out in it or in the rest of the property activities prohibited in bylaws, which are harmful to the property or which contravene the general provisions on annoying, unhealthy, harmful, dangerous or illegal activities.”

This basically gives your neighbours the right to complain about noise, smells, smoke and any possible fire risk in or around their building, which barbecues could plausibly fall under.

As with co-living anywhere in the world, regardless of the regional or local rules, employ some common sense: be reasonable, listen to neighbour’s concerns and take up any disputes with the President of la comunidad.

READ ALSO: What you need to know before having a barbecue in Spain

Plants

Again, with plants the responsibility falls on each local authority to set the rules. In Spain, most regions and town halls state that, as long as the architectural or structural elements of the building are not changed or weakened in any way, putting plants on your balcony is permitted.

However, note that many terraces and balconies do have maximum weight regulations that must be respected in order to guarantee their safety, which is 200kg per square metre. If this figure is exceeded (and it can be proved) you could theoretically be fined.

Laundry

Laundry lines criss-crossing the streets might be one of the more picturesque images of Spanish life, but the people doing it might actually be breaking the rules.

How do you know? You guessed it, it depends where you. You’ll need to check with your local authority on this one, though municipal regulations in Barcelona, Madrid and Valencia all regulate hanging laundry from your balcony, which is again outlined in the Horizontal Property Law.

This principally seems to be because it affects the façade of the building (a common theme when it comes to balcony rules in Spain).

In places with rules about hanging laundry from balconies, you could be fined up to 750 euros if you don’t comply with the rules.

However, according to Foto Casa, even if you live in an area where there are no bans or penalties against hanging laundry on the balcony, you’ll still likely need the permission of la comunidad.

READ MORE: Spain’s weirdest laws that foreigners should know about

What about flags?

Whether it be the Spanish flag, the Catalan, Valencian or Andalusian flags, or LGBT, trade union or football team flags, flags proudly hanging from balconies is another mainstay of Spanish life.

It’s also one of the more controversial ones too, especially within comunidad meetings. Hanging flags on the balcony, as well as allegedly altering the aesthetics and security of the building (the same concern as with laundry) often has ideological connotations that can cause conflict.

Again, as with laundry, hanging flags on the balcony will require the approval of all the owners within the community, something that must be agreed at a meeting, as per the Horizontal Property Law.

However, if the flag is placed inside the property, as it is a private property, fellow homeowners cannot oppose it, even if it is visible from the street, according to Foto Casa.

Nudity 

Article of 185 of Spain’s Penal Code only considers being naked at home to be obscene exhibitionism and sexual provocation if it affects minors, in which case it is punishable with a fine or up to a year in prison.

Therefore, you could technically sunbathe shirtless or naked on your balcony in most cases without getting into trouble, although it won’t necessarily go down well with your neighbours and/or flatmates and you be reprimanded for it.

READ ALSO: Can you go shirtless or wear a bikini in the street in Spain?

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