Relocation of workers: keys to finding new housing

The relocation service is aimed at companies and/or individuals who have to relocate, for work reasons, from their city of origin to a new city or a new country.

From the very beginning, it must be clear that an effective Relocation service must cover all phases of the relocation process, from the place of origin to the integration in the new destination.

Specifically, one of the main steps to be taken (and at the same time one of the most delicate) is to find suitable housing that suits the personal and family circumstances of the worker who is going to relocate for work reasons.

In this post our relocation experts analyze the most important aspects to take into account when looking for housing in a job relocation process.

We already anticipate you that the correct execution of this service, carried out by our experts in expatriations, at national and international level, have as an objective to make that you feel supported from the first contact and that you have a total integration in the new country / city / in your new home.

1) What is the first step when looking for a home?

The first step of all is to have the knowledge and experience of an expert to guide you through the whole process, both with the necessary documentation and the general information you need to know about the city you are moving to. It is also essential to be aware of the necessary procedures to be able to access a home, and to proceed with the signing of the contract.

2) What are the laws for permanent rental?

The permanent rental contract constitutes the tenant’s usual home, so it is very important to know the laws of each city.

In addition, regulations may vary from one city to another, even if they belong to the same country (for example, they are not the same in Barcelona and Madrid). In addition, it should also be noted that rent increases vary from one city to another:

The Law 12/2023, of 24 May, for the right to housing, with entry into force on 26 May, 2023, establishes numerous measures with respect to the lease of housing subject to the Urban Lease Law, in Articles 30 and 31, in several Additional and Transitory Provisions and also in its Provisions.

• In 2024, the maximum rent increase price is 2%. Increases are limited to a maximum of 3%.

• Starting in 2025, a new index will be created that will be more stable and lower than the CPI to update the amounts in January 2025.

Do you have any queries related to the rental contract? Gesdocument can help you with the negotiations to close this contract.

3) When can a tenant be evicted in Spain?

As of today, the tenant cannot legally be evicted before the first year has expired.

In addition, it must be taken into account that notice must be given 2 months before the date on which you want to enter the property, so it is important to be aware of these deadlines.

4) Who has to pay the annual property tax: the owner or the tenant?

According to article 20.1 of the LAU (Ley de Arrendamientos Urbanos), the general rule is that this tax must be paid by the owner, since it is a tax that is levied on the dwelling or premises and this property belongs to the owner and not to the tenant.

However, it should be noted that this rule is sometimes not observed. If this is your case, we can help you with this type of management.

5) How long do rental contracts last in Spain?

The duration of the rent in Spain will be the one freely agreed upon by the landlord and the tenant, although it must be taken into account that the laws change according to the city where the tenant is going to live.

However, the extension, in principle, will not occur if the lessee (tenant) communicates to the lessor (landlord), at least 30 days prior to the end of the agreed term or any of its annual extensions, their intention not to renew (art. 9 LA).

6) Can a homeowner repossess the property before the lease ends?

No, with certain exceptions.

The owner, if he/she is an individual, may repossess the property after one year has elapsed since the contract was signed. However, only if they need it for themselves or for next-of-kin (parents, children and spouse), by giving two months’ notice.

In addition, this possibility must be expressly provided for in the contract. This is one of the novelties of the new regulations approved in 2019, which may change depending on cities and/or years.

In the event that within three months the lessor or their relatives have not occupied the dwelling, except for reasons of force majeure, the tenant would be entitled to be reinstated in the lease and/or receive compensation determined according to the legal provisions (art. 9.3 LAU).

7) How much can rents rise each year in Spain?

Firstly, it should be noted that the rent is not subject to annual updating unless expressly agreed between the parties. However, it is customary for such an updating clause to be included in rental contracts in Spain. In this case, since the approval of Royal Decree-Law 7/2019, such update will be limited to the variation of the CPI for that period (art. 18.1 LAU).

When the update is agreed upon, it should be taken into account:

1. When does it apply? The rent may only be updated by the lessor or by the lessee under the terms agreed by the parties on the date on which each year of the term of the lease expires.

1. How is this update calculated? The parties may agree on the methodology for updating the rent. If they fail to do so, the rent will be updated for each annuity according to the annual variation of the Competitiveness Guarantee Index as of the date of each update. To calculate this variation, the month of the last published index must be taken as the reference month. In any case, whether applying this index or the one agreed upon by the parties, this variation may never exceed the variation of the CPI.

8) How many months of deposit can be required when signing the contract?

At the signing of the rental contract, the lessor or landlord will demand one month’s rent as a deposit, and it may be agreed to establish additional guarantees equivalent to a maximum of two months’ rent, whether deposits or any other type of guarantee (guarantees, insurance against non-payment, etc.). Under the previous regulations there was no limit on the amount (art 36.5 LA)

9) Can a bank guarantee be required to access the rent?

The bank guarantee is a payment commitment acquired by the tenant’s financial institution in the event that the tenant does not meet the agreed monthly payment. This was a common additional condition in some stressed markets... until now. Now, in no case may the bank guarantee imply for the tenant more than two months’ rent (i.e., the maximum limit of additional guarantees that can be added to the month’s deposit) (art 36.5 LAU).

10) What documents are required to rent permanent housing in Spain?

• Foreigner’s ID card
• Employment contract showing salary. Failing this, a letter of offer indicating the salary must be attached.
• The last two pay slips, and/or savings from the bank account in the country of origin.
• Bank account in Spain.

11) What should expatriates consider when looking for housing?

Currently there is a lot of demand for housing and little supply; therefore it is essential that the expatriate is in the destination city, with a minimum availability of 1 to 2 weeks to be able to schedule with real estate agencies and/or homeowners.

In order not to miss opportunities, it is essential to have all possible documentation ready prior to arrival.

Gesdocument can help you with all the arrangements from the place of origin, taking into account the necessary characteristics of the property you need. How? We will assign you an international agent to take care of your search from the beginning until the keys of your future home are handed over.

12) ✅ Do you want to know how we can solve your queries?

We have employee relocation experts who can accompany you throughout the process of your relocation to your new destination.

Contact us for a perfectly smooth and stress-free arrival in the city that will welcome you during your future project.