Spain like Germany seems to have adopted the same policy to protect real estate.
Just in the last column, we addressed this issue. In order to overcome the problem of the coronavirus, there are two months of moratorium in Spain, which can be extended, and possible compensation for owners. But let us try to understand in detail how this plan will be structured and, above all, to understand how long such a measure can last.
So let us start with our column today ! Let’s discover why Spain is like Germany !
As we have already described extensively in previous sections, how the situation in Spain is really critical. The number of people infected and deaths in this country has surpassed China, leading to the collapse of national health care. It is hopes that this unprecedented tragedy will last as long as possible.
In an attempt to at least make the Spanish property market resist, the same line has therefore been taken as was previously introduced in Germany.
But how does the Spanish Government’s action to protect real estate come about?
First of all, it will adopt a total suspension of the payment of rents, both for houses and premises, but also for offices. The state aid is not indifferent, not only aimed at protecting the real estate sector. But look also at people in difficulty who, because of this crisis, are unable to fulfil their duties as tenants.
But how is this action ? All those who cannot afford to pay the rent for various reasons do not risk any kind of penalty.
The main reasons are as follows:
Small and medium-sized enterprises and the self-employed are undoubtedly part of these issues. Those who, therefore, do not have ample financial resources and are in danger of running up a deficit.
Obviously, on the other side of the coin, adopting this measure is, in any case, a loss of income.
For landlords, on the other hand, there is financial compensation (to protect them). This is to be done gradually. The margin for variation is very wide. It starts from 100 % when the owner owns more than one property, up to 5 % for large owners with more than eight rental properties.
A protection, therefore, which, unlike in Germany, also includes owners and not only tenants.
What about the contracts that end during this phase of great alarm and criticality? No problem. They will be automatically extended for another three months.
We hope, of course, that these measures can be temporary, and that we can return to normal as soon as possible.
In the meantime, we at Realigro will provide you with a continuous information service that can best describe the international situation in real estate.
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