Last 23 December 2010, Law no. 39/2010, of 22 December, on the General State Budgets for 2011, was published in the Official State Bulletin, and this Law has introduced certain innovations on Urban Leasing matters.

The first innovation introduced and effective as of 1 January 2011 with an indefinite validity, is the modification of Section 6 of Article 36 of Law no. 29/1994, of 24 November, on Urban Leasings, although the rest of the article maintains its original wording. In this sense, we should remember that said Article 36 regulates the obligatory requirement of providing a deposit upon the signing of the leasing agreement. In particular, establishes a cash deposit equivalent to one monthly payment of the rent in the leasing of a dwelling and two monthly payments in the leasing of premises to be used for purposes other than that of a dwelling.

The modification of Section 6 of the afore-cited Article 36 is intended to expand the Public Bodies that are exonerated from the obligation of furnishing a deposit. In particular, the exception of furnishing a deposit now extends to the following: “The General State Administration, the Administrations of the Autonomous Communities and the entities making up the Local Administrations, the autonomous bodies, the public entrepreneurial entities and the rest of the public entities linked or dependent upon them and the ‘Mutuas’ or Private Societies covering Occupational Hazards and Professional Diseases of the Social Security System, in their public duties involving collaboration in the management of the Social Security system, as well as their Joint Centres and Entities, when the rent has to be paid at the expense of their respective budgets”.

In addition, the second modification in terms of Urban Leasings is included within the framework of the reorganization of the activity of the State’s Lotteries, Betting and Pools introduced by the afore-cited law on General State Budgets, which has established the following:

“All of the patrimonial sales, corporate operations and others acts derived either directly or indirectly from the application of the present additional provision which has the public entrepreneurial entity ‘Loterías y Apuestas del Estado’ or the ‘Sociedad Estatal Loterías y Apuestas del Estado’ as the obligor, will be subject to the application of the system of tax exemptions and tariff reductions foreseen in Sections 4 and 5 of Article 168 of the Law no. 33/2003, of 3 November, on the Patrimony of the Public Administrations.

In case of leased properties and for the purposes foreseen in Article 32 of the Law no. 29/1994, of 24 November, on Urban Leasings, regarding the transfers which might be carried out, cessions of leasing contracts in force will not be considered, nor will the lessors have the right to any kind of increase in rent related to them”.