Spain re-approves its housing decrees: what changes for tenants and landlords

Spain's Council of Ministers re-approved 2 royal decree-laws (reales decretos-ley) on housing on 6 October 2026. Congress had rejected the earlier versions on 2 October, the first by 172 votes to 178, and the second by 166 votes to 184. The new texts keep the same core measures, with some technical changes and a few additions.

Because a general election has been called for 29 November, the decrees will now go to the Diputación Permanente. This is the standing committee that exercises Congress's legislative powers while parliament is dissolved. Below, we set out the main changes.

What the housing decrees change for tenants in Spain

The first decree brings back an extraordinary 2-year extension for rental contracts that end before 31 December 2028, on the same terms as the current contract. To qualify, you must be up to date with your last 8 rent payments. The extension does not apply if both parties agree other terms, or if the owner needs the property for themselves or a family member.

Until 31 December 2027, annual rent increases are also restricted:

• If your rent is below the official reference price index for your area, it can rise by up to 2% a year
• If it is above the index, it cannot rise at all

For the first time in a decade, tenants also get a tax deduction. You can deduct up to 10% of the rent you pay if your taxable income is below €33,007.20. The deduction is not limited by age or to areas with stressed housing markets. It does not apply if you or your household own another home within 50 kilometres.

The decree also extends, until 31 December 2030, the suspension of certain evictions where the tenant is vulnerable, has no alternative housing and has not been offered a suitable solution by the authorities. 

What the housing decrees change for landlords and holiday-let owners

Seasonal rentals (alquiler de temporada) now need a genuine, documented reason. If you cannot prove one, or the contract is extended by 12 months without justification, it becomes a standard long-term tenancy. Contracts signed before the decree remain under the previous rules unless they are renewed.

Other changes for landlords include:

• Room rentals come under the Urban Leases Act (Ley de Arrendamientos Urbanos, or LAU), and the combined rent for all rooms cannot exceed the rent for the whole property
• Rental adverts must show the reference price index, any applicable rent cap and whether the landlord is a large holder
• Landlords can receive tax relief of up to 100% of their rental income if they cut the rent by 5% and meet certain conditions
• Landlords affected by the suspension of evictions of vulnerable tenants can claim compensation, except for entities classed as "vulture funds" (fondos buitre) 

From 1 December 2026, holiday lets will be charged 10% VAT (IVA), the same rate as hotels; until now, they paid none. In areas with stressed housing markets, town halls can also raise IBI (Impuesto sobre Bienes Inmuebles, the annual property tax) by up to 50% on homes used as holiday lets. For owners of 2 or more holiday lets, the increase can be up to 100%, and up to 150% for owners of 4 or more.

What the housing decrees change for first-time buyers in Spain

A new state-backed scheme, called "Tu Casa", will finance the deposit on a first home through the ICO (Instituto de Crédito Oficial, Spain's official credit institute). It offers an interest-free loan of up to €50,000, or 20% of the price if lower. Unlike current schemes, it has no age limit. Homes bought this way will have a capped resale price, updated in line with inflation.

The decree also restricts investment funds and large holders (owners of more than 10 homes) from buying homes until 31 December 2030. The rule targets purchases at below 70% of market valuation.

What happens next 

The first decree takes effect once it is published in the Boletín Oficial del Estado (BOE), Spain's official gazette. It must then be ratified within 30 days or it lapses. The Basque Nationalist Party (PNV), whose vote is decisive, is expected to support the first decree.

The second decree would make rental contracts renew automatically for 5 years, or 7 if the landlord is a company, unless there is a justified reason not to renew. Landlords who end the contract without one would have to compensate the tenant with up to 12 months' rent. Unlike the first decree, it does not take effect immediately: it is due to come into force on 15 November 2026, and only if ratified. The PNV is expected to vote against it.