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New business rent moratorium measures

Measures approved by Royal Decree-Law 15/2020, of 21 April, in the area of leases

Leases of business premises if the lessor is a large tenant

In case the landlord is a "large tenant" (defined as a landlord who owns more than 10 properties, or the rented premises are larger than 1,500 m2), the tenant can ask for a moratorium.

Lease of business premises if landlord is NOT a large tenant

When the landlord is a company(not applicable to individuals) or public housing entity, a moratorium or rent reduction may be requested for the duration of the state of alarm, provided that no prior agreement has been reached.

In this case, the parties may agree that the security shall be used for the payment of all or part of the rent, but it must be replaced within one year after it has been disposed of.

What is the moratorium?

To delay the payment of rent for the duration of the state of emergency, and never beyond four months.

What is the deadline for applying for the moratorium?

It can be requested within one month from 23 April, and the landlord will be obliged to accept the moratorium (if there has not been a prior agreement).

What conditions are imposed?

  • The lessor is obliged to accept the moratorium.
  • It will not generate interest
  • It shall be repaid within 2 years from the end of the alarm state or from the end of the 4-month period during which payment has been deferred.

What are the eligibility requirements for the rental moratorium in both of the above cases?

1) If the lessee is self-employed:

  • Be registered with the RETA on 14 March, if applicable, in one of the RETA's substitute mutual insurance companies.
  • The activity has been suspended by the Royal Decree declaring the state of alarm, or by orders issued by the competent authority.
  • If it has not been suspended, it has suffered a 75% reduction in its turnover in relation to the quarter to which the month belongs in relation to the previous year.

2) If the lessee is an SME:

  • That they do not exceed the limits of 257.1 of RDL 1/2010 of 02 July 2010 on capital companies.
  • Its activity has been suspended.
  • Or, if it has not been suspended, it has suffered a 75% reduction in its turnover in relation to the quarter to which the month belongs in relation to the previous year.

How are the requirements accredited?

  • A declaration by the person responsible stating the reduction in invoicing in the terms indicated above.
  • The suspension of the activity must be accredited by the issuing of a certificate by the Tax Agency or by the competent body of the Autonomous Community that has agreed to it.