Which law applies to renting a parking space and how long does it last?

Question

José Manuel Alburquerque · Accepted Answer

It depends on whether the space is rented on its own or with the flat. If the same owner lets it together with the flat, the rules on residential tenancies apply, including those on duration. If it is rented on its own, it is normally governed by what was agreed and by the Spanish Civil Code (“Código civil”), not by the “Ley de Arrendamientos Urbanos” (LAU), Spain's urban tenancies act, although some courts apply that act to it. Whichever law applies, a space rented on its own has no minimum term. It lasts as long as agreed and, if nothing was agreed, it is deemed to be let by the month when rent is paid monthly. On its own or with the flat With the flat. The LAU states that the rules on residential tenancies also apply to parking spaces, storage rooms and other spaces that the same owner lets as ancillary to the flat. The space then follows the flat in every respect, starting with the minimum term of five years, or seven if the landlord is a company. On its own. The majority view is that it is governed by the Civil Code, because the LAU applies to lettings of buildings and a parking space is not regarded as a building. The view is not unanimous. Some courts treat the space as a commercial lease (“uso distinto del de vivienda”), like commercial premises. A whole garage let to be run as a public car park is indeed governed by the LAU, like commercial premises. A space on a plot of land or in the open air is governed by the Civil Code. In practice the difference between the two laws is small, because under the LAU too what was agreed comes first and that act has few rules of its own for these lettings. If the LAU applied, the statutory deposit (the “fianza”) of two months' rent would be compulsory and the tenant would have the right to buy the space before anyone else if it is sold, unless the contract excludes this. In Catalonia the same Spanish Civil Code applies, because the “Código Civil de Cataluña”, the Catalan Civil Code, does not regulate this type of letting. How long it lasts and how it ends A space rented on its own lasts as long as agreed. If no duration was agreed, it is deemed to be let for the period for which rent is paid, by the month if the rent is monthly or by the year if it is annual. At the end of that period, the contract ends without any need for notice. But if, when it ends, the tenant goes on using the space for fifteen days without the landlord objecting or having given notice beforehand, the contract is renewed for the period for which the rent is paid, usually one month. This is what is known as tacit renewal (“tácita reconducción”). To avoid it, whoever wants to end the contract must give notice in writing, in a way that leaves a record, before the current period ends. The law does not set a minimum notice period, but the prudent course is to give the notice stated in the contract or, if it says nothing, one month's notice. For tax purposes If it is rented on its own, the space carries VAT at 21 %, which is the standard rate, even if the owner is a private individual. If it is let with the flat to the same tenant, it carries no VAT, just like the flat. On the income tax return, a space let on its own does not qualify for the allowance for residential lettings and it also requires the owner to register with the tax authorities and to file a VAT return every quarter. If the tenant is a business or a self-employed person, the tenant must withhold 19 % of the rent as an advance payment of the owner's tax, unless the total paid to the owner over the whole year does not exceed 900 euros.