New Spanish Housing Royal Decree 2026: What Has Been Approved and What Is Still Pending

Summary: the essentials in 30 seconds

• Approved by the Council of Ministers (29 September): two royal decree-laws. One contains most of the measures; the other covers the automatic extension of rental contracts.
• Evictions: protection for vulnerable households extended until 31 December 2030.
• Funds: until 2028, restrictions on speculative purchases of homes and mortgage portfolios acquired well below appraisal value.
• Rentals: 2% cap on annual rent increases and an extraordinary extension of up to two years for contracts expiring before 31 December 2028.
• Seasonal and room rentals: new regulation with additional requirements and controls.
• Tourist apartments: 10% VAT (a 21% rate had been mentioned).
• Aid: 0% financing for first-home buyers (the "TU CASA" mechanism) and tax rebates for tenants and for landlords who lower their rent.
• Pending: validation by Congress (Friday 2 October), publication of the second decree in the BOE (Spain's Official State Gazette) and several technical definitions.

What the Government has approved

The Government has approved two decrees after weeks of negotiation between the PSOE and Sumar. The split into two texts was decided so that the most controversial measures, above all the automatic extension, do not sink the rest in the parliamentary vote.

There is a precedent that explains this caution. An earlier decree, which also included the extension and the 2% cap, came into force on 22 March and lapsed on 28 April when it was not validated, with votes against from PP, Vox and Junts. That situation created considerable uncertainty for tenants and landlords.

Measures in the first decree

Evictions: protection until 2030

Evictions of vulnerable people without a housing alternative are suspended again until 31 December 2030. Until now the suspension ran to the end of 2026.

Curbs on speculative buying

Until 2028, purchases of homes by entities that acquire properties or mortgage portfolios far below appraisal value are restricted. According to early analyses, the threshold would be 70% of value. There is an exception for public bodies, such as Casa 47, so they can keep acquiring public or affordable housing.

SOCIMIs

Their taxation is reorganised to steer investment towards affordable housing. According to the press, the tax on profits from residential rentals would rise from 15% to 25%.

Seasonal rentals

The LAU (Spain's Urban Leases Act) is reformed to bring this type of contract closer to a primary-residence lease. According to the first details, the reason for the temporary stay must be stated, and the duration must be more than 31 days and never exceed 12 months.

Room rentals

The LAU is also reformed to align them with primary-residence leases. The sum of the rents for all rooms cannot exceed what it would cost to rent the whole property. Regions with their own civil law, such as Catalonia, will apply their own rules.

10% VAT on tourist apartments

Tourist rentals, until now exempt, will be taxed at 10%. The regime applies to rentals of less than 30 nights.

2% cap on rent increases

The 2% limit on annual updates of existing contracts returns.

Aid and tax rebates

• TU CASA: 0% financing backed by the State, managed by the ICO (Official Credit Institute), covering up to 20% of the home's value with a maximum of €50,000.
• Tenants: tax rebates for incomes of up to €33,000 per year, scaled by income. The Government estimates they will reach 1.6 million households.
• Landlords: tax incentives for those who lower the rent outside areas already declared as stressed markets.
• Protected housing: super-reduced VAT of 4% for public and protected housing developments.

The second decree: automatic extension of rentals

This text, Sumar's main demand, allows contracts ending before 31 December 2028 to be extended by up to two additional years, in annual periods. The terms of the current contract are kept and the tenant must be up to date with payments, including during the previous eight months. In practice, the landlord would have to prove a justified reason, such as needing the home for personal use, in order not to renew. There are exceptions in certain cases.

This is the text that raises the most concerns and, according to available information, it has not yet been published in the BOE.

What is still pending

1. Validation by Congress. Scheduled for Friday 2 October in an extraordinary plenary session. Without enough support, the decrees would lapse, as happened in April. Junts and PNV are decisive and have shown reservations about the extension.
2. Definition of "vulture fund". The minister has not specified the concept and the text does not clarify it, which may create legal uncertainty.
3. Fine print of the second decree. The exact exceptions to the extension and the compensation rules remain to be seen.
4. Implementation. It remains to be seen how the rebates, tourist VAT and new seasonal-rental rules will fit with regional regulations.
5. BOE publication. Until then, the final content should not be taken as settled.

What it means for landlords, tenants and investors

• Landlords: review contracts expiring before 2029, consider the rebates for lowering rent and study the new seasonal-rental rules.
• Tenants: learn the requirements to request the extension and the deductions.
• Tourist rental investors: the 10% VAT changes the profitability of the activity.
• First-time buyers: the TU CASA aid may make entering the market easier.

Frequently asked questions

Is the new housing decree already in force?
It has been approved by the Council of Ministers, but it must be validated by Congress, scheduled for 2 October.

How long will eviction protection last?
Until 31 December 2030.

Which rental contracts can be extended?
Those ending before 31 December 2028, for up to two additional years, provided the tenant is up to date with payments.

How will tourist apartments be taxed?
10% VAT.

How much can rent be increased?
The annual update cap will be 2%.

This article is for information purposes only and does not replace legal or tax advice. Consult a professional before making decisions about your property.

Sources consulted: idealista/news, Infobae, Noticias Jurídicas, Europa Press and other media (29–30 September 2026).