In Spain, the housing decrees enacted by Pedro Sánchez's government at the end of September have been repealed, yet not all tenant protections have vanished.
On October 2, the Congress decided to revoke both Royal Decree-Law 26/2026, which introduced a broad package of rental measures, and Royal Decree-Law 27/2026, primarily focused on strengthening the continuity of regular housing contracts.
The official repeal resolutions were published by the Official State Gazette on the same day.
The first decree had taken effect on October 1, while the second was listed as effective from October 2, rendering their legal lifespan notably brief.
The Impact on Temporary Rentals
A crucial component of Royal Decree-Law 26/2026 was the establishment of a specific framework for temporary and room rentals. This framework mandated that temporary contracts must include a bona fide reason justifying the limited rental period.
These contracts were required to be:
- Longer than 31 days.
- Typically not exceeding 12 months.
- Convertible to regular rentals if extended without genuine cause.
With the repeal, this national regime ceases to apply, leaving temporary contracts subject to the previous Urban Lease Law and any relevant regional regulations.
Room Rental Price Limits Eliminated
The decree also introduced significant rules in densely rented urban areas, stipulating that total room rents could not surpass the complete rental cost of the property. This specific regulation is no longer effective, although regional governments or competent administrations might still apply their own rules for temporary, room, or tourist housing.
Extraordinary Lease Extensions No Longer Available
Another major change was the extraordinary lease extension of up to two additional years for certain regular housing contracts. This measure allowed tenants, whose contracts were nearing the end of a specified extension period before December 31, 2028, to request this extension, provided they were up to date with rent payments for the preceding eight months.
Landlords were obliged to accept this extension unless certain exceptions applied, such as a new agreement or a verifiable need to reclaim the property. This special two-year extension is no longer in effect.
Remaining Protections for Vulnerable Tenants
Despite the removal of this measure, landlords cannot immediately terminate any lease agreement. The existing Urban Lease Law still provides several tenant protections, maintaining the minimum mandatory contract duration of:
- Five years when the landlord is an individual.
- Seven years when the landlord is a legal entity.
Gone: 2% Limit on Rent Updates
Royal Decree-Law 26/2026 had also imposed a temporary 2% cap on certain rent updates until December 31, 2027, which is now nullified. Rent updates revert to the ordinary rules under the Urban Lease Law, contract terms, and legally applicable indices or limits.
No More Compensation for Non-Renewal
The second decree introduced a controversial measure requiring landlords to compensate tenants with 12 months' rent if they chose not to renew the lease without a justified cause. This compensation clause is no longer part of the current regime.
Five or Seven-Year Renewal System Reverted
The decree aimed to overhaul the renewal process post-initial lease period, proposing a compulsory extension of:
- Five years for individual landlords.
- Seven years for corporate landlords.
Agency Fees Still Fall on Landlords
One area of confusion may involve agency fees. The repealed decree reinforced prohibitions against transferring certain costs to tenants. However, the primary obligation for landlords to cover real estate management and contract formalization fees remains intact, as established by the Urban Lease Law.
Price Limits in Tensioned Zones Remain
The assumption that landlords can now set any rent in officially declared tensioned zones is incorrect. The rules under Law 12/2023 regarding the Right to Housing still apply, ensuring that new leases on properties previously rented within the last five years do not exceed the last updated rent, except under legally permitted conditions.
Preemptive Purchase Rights Partially Persist
While the decree expanded tenants' preemptive purchase rights, this extension is no longer applicable. Nonetheless, the general right of first refusal and withdrawal as outlined in Article 25 of the Urban Lease Law remains, allowing tenants preferential purchase rights under specified legal terms.
Key Changes in Spanish Housing Laws
What happened to the temporary rental regulations in Spain?
The national framework for temporary rentals introduced by Royal Decree-Law 26/2026 has been repealed, reverting to the previous Urban Lease Law and regional regulations.
Are there still protections for vulnerable tenants in Spain?
Yes, the existing Urban Lease Law provides protections, including a one-year extension for vulnerable tenants and a maximum three-year extension in tensioned zones.
Do landlords still cover agency fees after the decrees were repealed?
Yes, landlords remain responsible for covering real estate management fees as per the Urban Lease Law, unaffected by the repeal of the decrees.