New reference price index for rent

Catalonia is to have a reference price index for rented flats. The index will be based on market prices and consider criteria such as size, location, age, accessibility and energy efficiency, among other factors.

The measure will come into force “immediately”, according to Catalan government sources. Once it has been established, owners who choose to put a flat on the market at a higher price will be required to include a warning to notify prospective tenants, and it will also be stated in the contract. Furthermore, owners who do this will not be eligible to access aid measures such as the government's Rent Guarantee. Conversely, owners who rent at a lower price will have preference when applying for economic aid for refurbishing work.

In addition, the government will urge town councils to hand out property tax bonuses or penalties and also ask the Treasury to do the same via income tax or corporate tax, depending on whether the owner is an individual or a company.

This is one of the most anticipated actions to be approved by the working group formulating the future Catalan rental law, comprising administrative staff, property developers, social organisations and experts. In addition to the new price index, the group has established criteria for the future law, which should be completed in nine months.

The new law will extend the minimum duration of contracts, proposing an extendable 5+3 formula, while also promoting longer contracts of up to 25 years. It will also allow sub-letting of up to nine months on 5+3 contracts or up to five years on longer ones. This is aimed at encouraging geographical mobility among tenants for work reasons without them having to give up their flat.