With the entry into force on 1st April 2015 of Law 2/2015 on the indexation of the Spanish economy, the Law amends the conditions and the method of updating rent in Spain. Article 18.1 of the Urban Leasing Act, for example, reads as follows:
- During the term of the lease, the rent may only be revised by the landlord or tenant on the date of each anniversary of the contract, under the terms agreed to by the parties. In the absence of an express agreement, no review of rent applies to contracts.
- In the event of an express agreement between the parties about a review mechanism for monetary values that do not detail the index or reference methodology, the rent will be reviewed annually by reference to the annual change in the Warranty Competitiveness Index at each date of review, taking the reference month for the revision that corresponds to the last index that was published on the revision date of the contracts.
- Additionally, the Law modifies paragraph 3 of the first additional provision of the LAU (Urban Leasing Act) on public housing rent, which reads as follows: No review of rent will apply to subsidized housing unless there is an explicit agreement between the parties. In the event of an express agreement between the parties on a review mechanism for monetary values that do not detail the index or reference methodology, the rent will be reviewed annually by reference to the annual change in the Warranty Competitiveness Index.
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