The suspension of evictions: compensation and pending challenges for property owners

The real estate news portal Brains Real Estate News published last week the article entitled “The suspension of evictions in Spain: past, present and future”, which analyzes the key aspects for requesting financial compensation for property owners affected by the suspension of evictions. Written by journalist Adriana Rocha, the piece includes contributions from Carlos Muñoz, partner at CIM Tax & Legal, together with Laura Fernández, Managing Director of the Association of Rental Housing Owners (Asval), and Oriol Payà, COO of Vivara.

During the session, the experts reviewed the evolution of this exceptional measure, implemented in 2020 as part of the so-called social shield in response to the Covid-19 crisis and systematically extended until December 31, 2025. Although the regulation has prevented evictions of vulnerable families, it continues to generate debate due to its impact on legal certainty and the rental market, as property owners are bearing the burden of shortcomings in social services, which they should not have to assume.

Carlos Muñoz explains that the suspension only applies to evictions of tenants in vulnerable situations (for non-payment or termination of contract) and notes that landlords may also be protected if they find themselves in financial hardship. He also points out that there is a compensation mechanism, which can be requested until January 31, 2026, designed to mitigate the losses suffered. However, in practice, its processing varies by region, still faces significant delays, and does not cover the owner’s total loss.

The meeting also addressed possible scenarios from 2026 onwards: the potential extension of the suspension, with new conditions and criteria, or its definitive lifting, which could lead to a massive reactivation of judicial proceedings.

Read the full article on Brainsre.news

We would like to thank Brains Real Estate News for their trust in our team and the opportunity to share our legal perspective on such a relevant issue for the real estate and asset management sectors.