If you own a rented property in Spain, you have probably heard about extensions, caps on rent increases and contracts that renew automatically, and you may not be sure what is in force and what is not. That is understandable: in barely a week, the housing decrees have been approved, repealed and approved again.
On 2 October, the Congress of Deputies repealed Royal Decree-Laws 26/2026 and 27/2026. On 6 October, the Government approved Royal Decree-Law 29/2026 and Royal Decree-Law 28/2026, published in the Official State Gazette (BOE) on 7 October. The first is already being applied; the second depends on a vote.
In this guide we explain, from the landlord’s point of view, which measures already affect you, which ones could arrive on 15 November and what you should review in your contracts.
1. WHICH DECREES EXIST AND WHAT IS THEIR STATUS
| DECREE | WHAT IT REGULATES | IN FORCE FROM |
| RDL 29/2026 | Extraordinary extension, rent updates, seasonal lets and room rentals, costs, evictions and taxation | In force since 8 October 2026 |
| RDL 28/2026 | Renewal of main-residence tenancy contracts when they expire | 15 November 2026, pending validation |
As the Spanish Parliament (Cortes) has been dissolved, the validation of both decrees falls to the Standing Committee (Diputación Permanente) of the Congress of Deputies.
A relevant point: before taking any decision, it is necessary to check whether the Standing Committee has already voted on the validation of the decrees and what the result was.
2. EXTRAORDINARY EXTENSION OF UP TO TWO YEARS
This is the measure that affects you most as a landlord. If the mandatory or tacit extension of a main-residence tenancy ends before 31 December 2028, the tenant may request up to two more years, in annual periods and on the same terms as the contract. To do so, the tenant must be up to date with payments and must have been so during the previous eight months.
The extension does not apply in the following cases:
- If you need the property for yourself or for your family members, you give notice within the legal deadlines and there is a real, documented reason.
- If you reach a different agreement or sign a new contract.
- If you agree a renewal or a new contract with a rent at least 5% lower than the current one.
Important: the extension depends on RDL 29/2026 being validated. If the Standing Committee were to reject it, it could no longer be requested.
3. RENT UPDATES: MAXIMUM OF 2%
Until 31 December 2027, the annual rent update in residential tenancy contracts may not exceed 2% unless the parties reach a new agreement. If the rent already exceeds the limit set by the reference price index, no increase is allowed.
Practical example: if you charge €1,000 per month and the update falls due in January 2027, without a new agreement with your tenant the rent may not exceed €1,020, even if the contract provides for a different index.
4. SEASONAL LETS AND ROOM RENTALS
The decree tightens two formulas that many landlords used as an alternative to a main-residence tenancy:
- Seasonal lets: these require a real and verifiable reason for the tenant’s relocation. The term must exceed 31 days and, as a general rule, not go beyond 12 months. If 12 months are exceeded without justification, or if more than two consecutive contracts are signed with the same tenant for the same property, the arrangement is treated as a main-residence tenancy from the first contract.
- Room rentals: the total of the rents for all rooms let at the same time may not exceed the rent for the whole property. In stressed housing areas (zonas tensionadas), rent limits also apply.
Important: the seasonal contract must expressly state the reason, and it is the landlord who must prove it. Always keep the document that supports it, such as a temporary employment contract or a university enrolment.
5. COSTS, EARLY TERMINATION AND EVICTIONS
Other day-to-day rules have also changed since 8 October:
- Costs: real estate agency fees and contract formalisation costs, including those for a renewal, may not be passed on to the tenant. The same applies to property taxes, such as the IBI (local property tax), unless the tenant is the taxpayer.
- Early termination: for a main residence, the tenant may leave after six months by giving 30 days’ notice; for seasonal lets, after one month by giving 10 days’ notice. In neither case does the tenant owe you compensation.
- Evictions: until 31 December 2030, evictions of vulnerable persons without an alternative housing solution may be suspended. If you are an individual, the suspension lasts a maximum of three years and the decree provides for compensation, subject to the conditions and limits it sets out.
6. TAX MEASURES THAT MAY INTEREST YOU
- Personal income tax (IRPF): if you are not a large property holder and you sign a new contract reducing the rent by more than 5% compared with the previous one, you may reduce the net rental income by between 70% and 100%, depending on the area, the age of the tenant and other requirements.
- VAT (IVA): from 1 December 2026, the letting of furnished homes for 30 nights or fewer to the same tenant is taxed at 10%, unless it is your main residence.
- Local property tax (IBI): councils in stressed housing areas may approve a surcharge of up to 50% on the IBI of tourist apartments, rising to 100% if you own two or more and to 150% if you own four or more.
7. WHAT COULD ARRIVE ON 15 NOVEMBER: RDL 28/2026
This second decree will only apply if the Standing Committee validates it, and only to main-residence contracts that expire on or after 15 November. Its main changes would be:
- Automatic renewal: once the contract has run for five years (seven if the landlord is a company), it is extended for periods of the same length, unless notice to the contrary is given.
- Six months’ notice: the period for notifying that you do not wish to renew increases from four to six months. The tenant’s period remains at two months.
- Compensation: if you decide not to renew, you must pay the tenant the higher of these amounts: 12 monthly payments or one for each year the tenant has lived in the property.
- No compensation: among other cases, if you are an individual and need the property for yourself or for a relative up to the second degree, if the tenant has another home available in the same municipality, or if you sign a new contract. The reason must be stated in writing in the notice.
- Notices already sent: non-renewal notices sent before 7 October 2026 remain valid and do not give rise to compensation.
Practical example: Pedro, a private landlord, has a contract that reaches five years on 1 June 2027. If the decree is validated and he does not wish to renew, he must give six months’ notice, that is, before 1 December 2026, and pay 12 monthly payments. If he needs the property for his daughter and states this in the notice, he will not pay compensation, provided that she occupies it within three months of the handover. And if his tenant is entitled to request the extraordinary extension and does not request it, there will also be no compensation; if the tenant does request it, the matter is postponed until the extension ends.
8. COMMON MISTAKES TO AVOID
✔ Refusing the extraordinary extension without checking whether you have a ground that allows it.
✔ Applying the contractual rent increase without taking the 2% limit into account.
✔ Signing a seasonal let without documenting the reason.
✔ Continuing to pass the IBI or management costs on to the tenant.
✔ Taking RDL 28/2026 for granted before it has been validated.
✔ Replying to a burofax from the tenant without first reviewing your contract.
HOW CAN CPG ABOGADOS HELP YOU?
At CPG Abogados we review your rental contracts and help you adapt them to the new rules: we check whether your tenant may request the extraordinary extension, calculate the rent update and support you in any communication with the tenant. If you own a rented property, please contact us and we will assess your case on a personalised basis.
