The rental market in Spain faces a new reform that introduces important changes for owners and tenants. The two royal decree-laws approved by the Government in October modify aspects related to the duration of contracts, rent updates, expenses that can be passed on to the tenant, and compensations for certain non-renewals. The measures also affect seasonal rentals, economic guarantees, and tax incentives for owners.
The new provisions are included in the Royal Decree-law 28/2026 and the Royal Decree-law 29/2026, both published in the Official State Bulletin (BOE) on October 7. However, the measures do not come into effect at the same time: while the second began to apply generally on October 8, the first establishes November 15 as the effective date. Additionally, both decrees are subject to parliamentary validation, so their continuity depends on Congress.
The date of signing the contract, its purpose, the location of the property, and the condition of the owner are determining factors for knowing which regulations apply. Not all rentals are subject to the same obligations, especially when there are contracts prior to the reforms.
When the rental changes apply
The dates that landlords and tenants must review.
| Date | What changes and what you must check |
|---|---|
| October 7, 2026 | Publication of both decrees. Valid notices of non-renewal prior to this date have a specific treatment: they retain their effectiveness and do not generate the new compensation. |
| October 8, 2026 | General entry into force of RDL 29/2026. Some measures have their own dates and there are transitional rules for previous contracts. |
| November 15, 2026 | Expected entry of RDL 28/2026, with new extensions and compensation for certain non-renewals. Its application depends on whether the regulation remains in force and the transitional regime of the contract. |
| December 1, 2026 | Expected date for specific changes in VAT, including those related to certain works in homes intended for habitual rental, with requirements. |
| December 31, 2027 | End of the period contemplated for the extraordinary limitation of annual rent updates. |
Source: BOE, Royal Decrees-Laws 28/2026 and 29/2026. Information reviewed on October 18, 2026.
1. Temporary rentals: it's no longer enough to sign an eleven-month contract
One of the main changes affects seasonal rentals, a modality commonly used by students, displaced workers, and people who need accommodation for a limited period. The new regulation requires that there be a real, justified, and verifiable cause for the contract to be considered temporary. That circumstance must be expressly stated in the document and it will be the landlord's responsibility to demonstrate its existence.
As a general rule, these leases must have a duration greater than 31 days and not more than twelve months, although they may be extended if the cause justifying the temporary stay continues to exist.
The regulation aims to prevent the use of seasonal contracts to cover rentals intended for permanent housing. The absence of justification, the unjustified extension of the contract, or the chaining of more than two consecutive temporary contracts may cause the rental to be considered permanent from the first agreement. Temporary contracts signed before October 8 retain, in principle, their regime until the end of the agreed term.
2. New limits for setting the rental price
Landlords cannot always freely set the price of a new contract, especially when the property is located in an area declared as having a tense residential market.
In these territories, the initial rent must respect the limitations established by housing legislation. As a reference, in certain cases, the price of the last valid contract during the previous five years is used, applying the corresponding updates.
The regulation contemplates additional increases of up to 10% in specific circumstances, such as certain rehabilitations, improvements in energy efficiency or accessibility, and contracts that guarantee a prolonged stay. However, this is not a general authorization to raise prices.
When the landlord is considered a large holder, the limits of the state reference system for rental prices may also apply.
3. How much can rent increase in 2026 and 2027?
Another of the novelties affects the annual updates of the rent, which will be subject to extraordinary limitations until December 31, 2027.
The regulation establishes that an increase cannot be applied when the rent exceeds the corresponding maximum limit of the reference system. In other cases, the update may be negotiated between landlord and tenant, but if there is no new agreement, the increase cannot exceed 2%.
The Housing Rental Reference Index (IRAV) must also be taken into account, which acts as a limit for the annual update under the terms established by legislation.
In any case, the 2% is not an automatic increase. To raise the rent, there must be an applicable update clause and legal requirements must be met.
How much can the rent increase?
Annual updates between October 8, 2026, and December 31, 2027.
| Contract situation | Applicable rule |
|---|---|
| The rent exceeds the maximum limit applicable of the reference system | No rent increase applies in the annual update. |
| The rent does not exceed that limit and there is no new update agreement | The increase cannot exceed 2%, without ignoring the applicable IRAV limit or the conditions of the contract. |
| The rent does not exceed that limit and the parties reach a new agreement | What was agreed applies within the legal limits. The agreement does not allow evading the IRAV ceiling. |
| There is no express update agreement | An automatic increase does not apply. The 2% limit does not by itself create the right to increase the rent. |
Source: RDL 29/2026, final provision sixth and modification of article 18 of the Urban Leasing Law.
4. IBI, community expenses, and real estate agency: who should pay them
The reform also introduces changes in the expenses that can be passed on to tenants. The new regulation prevents imposing certain taxes associated with housing when they are not the tax obligors, although it will be necessary to review the applicable regime for previous contracts.
Regarding community expenses, they may be passed on in the permitted cases when there is a written agreement and their annual amount is determined. Individualized supplies through a meter, such as water, electricity, or gas, will normally continue to correspond to the tenant.
The regulation also reinforces the prohibition of charging the tenant real estate management and contract formalization expenses, including services related to their preparation, modification, or renewal. Additional services that are not essential cannot be imposed if the tenant has not expressly and in writing requested them.
5. Extraordinary rental extension: up to two additional years
Tenants of certain habitual housing contracts may request an extraordinary extension of up to two years, through annual periods, when the conditions set forth in Royal Decree-Law 29/2026 are met.
To access this measure it will be necessary to be up to date with payments and have paid the rent monthly for the previous eight months. The regulation contemplates, among other cases, contracts whose mandatory extension period ends before December 31, 2028.
There are exceptions, such as certain agreements between the parties, the signing of a new contract, or the owner's proven need to recover the property under the legally established conditions.
The extension does not apply automatically: it must be requested by the tenant. Furthermore, when different extraordinary mechanisms for extending the contract occur, they cannot be accumulated without adhering to the compatibility rules, which give preference to the regime of tense areas.
6. Not renewing the contract may oblige the owner to compensate
One of the most relevant changes is scheduled for November 15, 2026, the date of entry into force established for Royal Decree-Law 28/2026.
The regulation modifies the system of extensions for certain contracts of habitual housing and establishes successive periods of five years, or seven when the owner is a legal entity, if the conditions are met and there is no valid notice of non-renewal. The general notice period for the landlord is six months, while that of the tenant remains at two.
Furthermore, the owner's decision not to renew may generate compensation in favor of the tenant. Its calculation will be made taking the greater of two amounts: twelve monthly payments calculated with the higher value of the individualized range of the state reference system, or one monthly payment calculated with that value for each year of residence.
The compensation will not apply in all cases. The legislation establishes exceptions, among them certain proven housing needs of the owner or their relatives. Validly communicated non-renewal notices before the publication of the decree maintain their effects and do not generate this compensation, so the dates are essential.
7. Large holder: when is it considered that an owner has too many homes
The condition of large holder is relevant because it determines the application of some of the restrictions provided by housing legislation.
As a general rule, a large holder is considered to be someone who owns more than ten residential urban properties or a constructed area greater than 1,500 square meters intended for residential use, not counting garages or storage rooms.
In certain tense areas, the concept may be expanded to owners with five or more homes located within the affected area.
The reform also incorporates a clarification: the different homes in a building can be counted independently even if there is no registered horizontal division. Therefore, owning a complete building does not necessarily imply that it is counted as a single property.
8. Deposit, additional guarantees, and early termination of the lease
The new regulation differentiates between the mandatory legal deposit and the additional guarantees that the owner may require to ensure compliance with the contract.
In contracts for habitual housing subject to the new regime, the additional guarantees may not exceed two months' rent when the duration is up to five years, or seven if the landlord is a legal entity. For temporary rentals, the maximum additional amount will be one month's rent. It is also prohibited to require the tenant to take out a default insurance.
Regarding early termination, the tenant of a habitual residence may withdraw once six months have passed, with a minimum notice of 30 days. For temporary contracts subject to the new rules, the withdrawal may be exercised after the first month, notifying at least ten days in advance.
The withdrawal made under these conditions will not generate compensation in favor of the owner. However, it must always be verified what regulation corresponds to the specific contract.
When the tenant can leave
Conditions for withdrawal for contracts subject to the new regime.
| Type of rental | Minimum time elapsed | Minimum notice |
|---|---|---|
| Habitual residence | Six months | 30 days |
| Temporary residence | One month from formalization | 10 days |
Source: RDL 29/2026, modification of article 11 of the Urban Leasing Law.
9. Sale of the property and evictions: what rights the tenant retains
The reform also strengthens the tenant's right of first refusal when the owner decides to sell the property. Among other novelties, it limits the possibility of contractually waiving this right and provides for its preservation in certain joint sale operations when the property can be legally individualized.
In terms of evictions, there is no automatic suspension of all proceedings until 2030. The protection measures depend on factors such as the proven economic vulnerability, the absence of a housing alternative, the type of owner, and judicial decisions.
In certain proceedings for non-payment, the legislation provides mechanisms for administrations to offer housing solutions or intervene in the legally established conditions.
The existence of a situation of vulnerability does not imply that the obligation to pay rent disappears, just as the sale of a property does not necessarily mean the immediate extinction of the tenant's rights.
10. Tax incentives: changes in the IRPF, the IBI, and the VAT
The last block of novelties affects taxation related to rental, both for owners and for certain works carried out in the properties.
In the IRPF, tax reductions apply to the positive net income from leasing and depend on conditions such as the price reduction, the age of the tenant, the location of the property, or the owner's status as a large holder. There is no single percentage applicable to all contracts, as the benefits may vary depending on the requirements met.
In the case of the Property Tax (IBI), surcharges on vacant properties depend on legal conditions and decisions made by each municipality. Therefore, a vacant property is not necessarily subject to the same tax treatment in all municipalities.
For its part, as of December 1, 2026, the application of the reduced VAT of 10% to certain renovation and repair works in properties intended for habitual rental is planned. The measure will be conditioned on compliance with requirements related to the age of the property, the cost of materials, and other conditions established in the regulation.
What owners and tenants should check before renewing a contract
The application of these measures depends on the characteristics of each lease. It is not the same a usual rental signed five years ago as a recent temporary contract, nor a home located in a pressured area as another where there are no specific price limitations.
For example, if a contract ends in December 2026, it will be necessary to check when it was signed, in what extension phase it is, and if there is a valid communication of non-renewal. On the other hand, when an eight-month rental is formalized for work reasons, the main issue will be to adequately prove the temporary cause.
It will also be necessary to review the history of the property before establishing a new price, especially in areas declared as having a pressured residential market.
How changes can affect your contract
Three hypothetical examples to identify what documentation to review.
| Hypothetical case | What you should check |
|---|---|
| My rental ends in December 2026 | The phase of the contract, if there is a valid notice of non-renewal and when it was sent, the requirements for the extraordinary extension, and the transitional rules of November. The expiration, by itself, does not determine compensation. |
| I rent for eight months due to a work relocation | That the temporary cause is included in the contract and can be proven. The signing date, additional guarantees, and early exit conditions should also be reviewed. |
| An apartment goes from being advertised for 900 to 1,100 euros | If it is in a pressured area, what contract was in force during the previous five years, its update, and if the owner is a large holder. The price difference is not enough to determine if the new rent complies with the law. |
In short, the reforms of October 2026 introduce new obligations for owners and expand certain protections for tenants, but their application is not uniform or immediate. Before raising a rent, renewing a contract, or communicating its termination, it is essential to review the dates, the original clauses, and the transitional provisions.
The most immediate changes have already begun to be applied on October 8, while the new conditions regarding extensions and compensations for non-renewal are scheduled for November 15, as long as the validity of the regulations is maintained. Knowing these differences will be key to avoiding mistakes and possible conflicts between owners and tenants.