UPDATE - Housing and rentals: the Government tightens the rules, limits speculative property acquisitions and strengthens tenant protections under the new RDL 29/2026 and 28/2026.

This note expands upon and provides a more detailed analysis of the summary of the key aspects of RDL 29/2026 and RDL 28/2026 (read article) already published on our website. While that document offered an overview of the main developments regarding housing, urban leases and evictions, this note provides an in-depth practical analysis of each measure: the new rules governing the duration, extensions and compensation mechanisms applicable to primary residence leases; the distinct treatment of seasonal and room rental agreements; enhanced protection measures against evictions and situations of vulnerability; and the full range of tax developments affecting Personal Income Tax (PIT), VAT, Property Tax (IBI), SOCIMIs and municipal capital gains tax, together with their respective implementation timelines. It also includes the transitional regime applicable to ongoing contracts and proceedings, comparative tables and precise legislative references designed to address the practical questions arising from the immediate application of both regulations.

In September 2026, Royal Decree-Laws 29/2026 and 28/2026 were approved, introducing a far-reaching reform of the Spanish housing and rental market. The new measures affect property owners, landlords, investors, tenants and real estate operators, introducing new restrictions relating to leases, evictions, housing acquisitions and real estate taxation.

These regulations, which remain subject to parliamentary ratification, amend fundamental aspects of the residential rental framework and strengthen tenant protection mechanisms, particularly in situations of vulnerability.

Temporary and Room Rentals: A New Legal Framework

One of the key changes is the incorporation of seasonal rentals and room-letting arrangements into the general residential lease regime established by the Urban Leases Act (LAU).

Going forward, temporary rental agreements must adequately justify the temporary nature of the arrangement, must have a minimum duration of 31 days and a maximum duration of 12 months, and may be reclassified as primary residence leases where they are used consecutively to circumvent the legal protections afforded to tenants.

New Mandatory Lease Extensions

The reform significantly enhances tenant protection through the creation of new extraordinary extension rights.

Until the end of 2028, certain tenants may request an additional extension of up to two years, which landlords must accept except in specific legally defined circumstances, such as the need to occupy the property personally or for use by close family members.

In addition, new extension mechanisms are introduced for situations involving vulnerability and for properties located in stressed residential market areas.

Greater Control over Rent Updates

The new provisions restrict the ability to increase rents in certain circumstances, particularly within stressed residential market areas.

Control mechanisms applicable to large landlords are also strengthened, with the State rental price index system serving as the benchmark for determining maximum rents in a significant number of lease agreements.

Restrictions on Charges and Guarantees Imposed on Tenants

The reform prohibits the transfer to tenants of certain costs associated with residential leases, including real estate agency fees and contractual formalisation expenses.

Additional guarantees that may be required from tenants are also restricted, and the use of rent default insurance is limited in certain primary residence lease agreements.

Strengthened Protection against Evictions

The new regulations expand existing protection mechanisms for vulnerable individuals and families.

Additional grounds are introduced for the suspension of eviction proceedings, together with new measures aimed at ensuring access to alternative housing before certain evictions can be enforced.

Furthermore, administrative intervention mechanisms are established to address situations of particular economic vulnerability.

Tenant Compensation for Non-Renewal of Lease Agreements

RDL 28/2026 introduces one of the most significant changes of the reform: the obligation to compensate tenants in certain circumstances where landlords decide not to renew a lease upon expiry of its statutory term.

The amount of compensation may reach significant levels depending on the tenant's length of residence and local housing market conditions.

New Tax Measures Affecting Vacant Properties and Rental Housing

The reform introduces significant tax changes aimed at encouraging residential leasing and discouraging the long-term vacancy of residential properties.

Among other measures, taxation on certain vacant properties is increased, the tax reductions applicable to residential rental income under Personal Income Tax are amended, new tax deductions are introduced for tenants, and changes are made to the taxation of tourist accommodation rentals.

Municipal authorities will also be allowed to apply higher Property Tax (IBI) surcharges on vacant properties and dwellings used for tourist accommodation purposes.

Promoting Affordable Housing

The new regulations also introduce measures designed to support the development and acquisition of affordable housing.

These include new public financing programmes, guarantee schemes for residential development projects, support mechanisms for first-time homebuyers and the creation of specific instruments aimed at increasing the supply of social and affordable housing.

What Does This Mean for Property Owners and Investors?

The reforms introduced by RDL 29/2026 and RDL 28/2026 represent one of the most significant changes to Spain’s real estate framework in recent years. Property owners, landlords, developers and investors will need to review their strategies and contractual models to adapt to a more interventionist regulatory environment, characterised by increased obligations in the rental sector and a broad range of measures aimed at improving access to housing and strengthening tenant protections.

Access the full report via the link.