Spain: Rent moratorium on lease agreements for use other than housing

On 22 April 2020, Royal Decree-Law 15/2020, of 21 April, on additional urgent measures to support the economy and employment (RDL 15/2020) has been published in the Spanish National Official Gazette (Boletín Oficial del Estado-BOE), which sets out, among other measures, the rent moratorium for small and medium-sized enterprises (SMEs) (pequeñas y medianas empresas-PyMEs) and self-employed persons on leases for use other than housing (Article 3 of the Urban Leases Act 29/1994, of 24 November) and industry leases.

1. If the lessor is a company or public housing entity or a large portfolio holder, for these purposes, any individual or legal person owning more than ten (10) urban properties, excluding parking areas and storage rooms, or a built surface of more than 1,500 m2:

   1. The moratorium shall be mandatory for the lessor, provided that no agreement between the parties had been previously reached to defer or reduce the payment of rent.

   2. The moratorium shall apply automatically and be maintained for the duration of the alarm status and its extensions and, as the case may be, during the following monthly payments if said period is insufficient as regards the impact caused by COVID-19, up to a maximum of four (4) months.

   3. The payment of the rent will be deferred by dividing the same into instalments to be paid within a period of two (2) years as from the time the impact suffered by COVID-19 is overcome or from the end of the four (4) month period, though always within the term of the lease agreement. Said deferral shall not result in any penalty or accrual of interest.

2. If the lessor is neither a company nor public housing entity nor a large portfolio holder:

   1. The lessee “may request” the lessor a rent moratorium, provided that no agreement between the parties had been previously reached to defer or reduce the payment of rent. Please note that RDL 15/2020 does not set out either the conditions of said moratorium or if it is mandatory for the lessor.

   2. The parties may make use of the lease deposit for the payment, total or partial, of any of the rent monthly payments, in which case the lessee shall replace the amount of the deposit provided within one (1) year as from the parties have agreed so, or within the remaining term of the lease agreement, if said period is shorter¹.

3. Within a period of one (1) month as of 23 April 2020, SMEs and self-employed persons, as lessees in a lease agreement of a property relating to their economic activity, may apply for the rent moratorium if the following requirements are complied with and justified:

4. Lessees who have unduly benefited from the moratorium on the payment of rent pursuant to RDL 15/2020 shall be liable for any damages caused and for the expenses generated by the application of said measures, without prejudice to any other liability which may derive from their conduct.

¹It will be necessary to request the reimbursement of the lease deposit to the competent regional body, in all cases where the same is deposited.
²Article 257.1 of Royal Legislative Decree 1/2010, of 2 July, approving the consolidated text of the Spanish Capital Companies Law.