15 October 2026
On 6 October 2026, the Spanish Government adopted two new decree-laws affecting the housing market: Royal Decree-Law 28/2026 and Royal Decree-Law 29/2026. Both were published in the Spanish Official State Gazette (BOE) on 7 October. The measures strengthen tenant protection but may also alter the legal certainty and financial planning of property owners.
For Spanish and international owners, key questions include how long residential leases may be extended, which notice periods must be observed and in what circumstances compensation might become payable when a landlord decides not to renew.
Important timing distinction: RDL 29/2026 generally entered into force on 8 October 2026. RDL 28/2026 is scheduled to enter into force on 15 November 2026. As at the date of this analysis (15 October 2026), final parliamentary ratification cannot be confirmed; subsequent developments could alter the legal position.
1. Extraordinary extensions of up to two years
RDL 29/2026 allows tenants under certain existing primary-residence leases to request an extraordinary extension in yearly increments, up to a total of two additional years. Conditions include the lease falling within the statutory categories and the tenant being up to date with rent, including throughout the preceding eight months.
The extension does not apply automatically to every tenancy and is subject to statutory exceptions. Nevertheless, where it applies, it may significantly affect an owner's plans to sell the property or recover it for personal occupation.
2. Longer notice periods and continuing contractual commitments
RDL 28/2026 revises Article 10 of Spain's Urban Leases Act (Ley de Arrendamientos Urbanos, or LAU). After the statutory minimum term, further extensions of five years for individual landlords, or seven years where the landlord is a legal entity, may apply if statutory conditions are met and valid notice of non-renewal has not been given.
The ordinary landlord notice period is also increased, as a general rule, from four to six months. Transitional provisions preserve certain notices already served and address leases nearing expiry.
The practical risk is clear: a missed deadline or ineffective notice could result in a much longer commitment than the owner originally anticipated.
3. Compensation even where non-renewal is lawful?
One of the most significant changes envisaged by the new Article 10 LAU is compensation in certain cases where a landlord validly elects not to renew. The amount is the greater of twelve monthly reference amounts or one monthly reference amount for each year of occupation. Ordinarily, the calculation uses the upper individual value under the state rent reference system; where no such value is available, the current contractual rent is used.
Illustration: assuming a relevant monthly amount of EUR 1,500 and eight years of occupation, twelve monthly amounts equal EUR 18,000, compared with EUR 12,000 based on eight years. If all statutory conditions are met, the higher figure of EUR 18,000 would apply. Fifteen years of occupation would produce an illustrative figure of EUR 22,500 on the same basis.
There are important statutory exceptions, including certain circumstances in which the individual landlord genuinely requires the property for personal or qualifying family use. Other circumstances may exclude or defer the payment. Liability should never be assumed without examining the specific facts and statutory conditions.
The central legal question is whether imposing a substantial financial burden on an owner who lawfully declines to extend a tenancy is proportionate.
4. Restrictions on rent increases
RDL 29/2026 introduces limits on certain residential rent adjustments until 31 December 2027. Depending on the applicable statutory conditions, increases may be capped at two per cent or prevented where the relevant reference thresholds are exceeded.
The outcome depends on the lease terms, the applicable legislation and, where relevant, the state rent reference system. It would be misleading to assume that one uniform rule governs every rental agreement.
5. Property rights and constitutional limits
Article 33 of the Spanish Constitution recognises private property, while Article 47 establishes a public-policy mandate concerning access to adequate housing. These provisions must be considered together and balanced.
Interference with existing contractual relationships should be examined against legal certainty, proportionality and the social function of property. Financial disadvantage alone does not automatically establish unconstitutionality. Nevertheless, the breadth of the proposed compensation and extension mechanisms deserves close legal scrutiny.
6. Parliamentary procedure
Article 86 of the Constitution permits decree-laws in cases of extraordinary and urgent necessity. Article 78 assigns certain parliamentary functions to the Permanent Deputation (Diputación Permanente) while Parliament is dissolved. Its involvement is therefore not, in itself, unconstitutional.
The adoption of measures similar to provisions previously rejected by Parliament raises issues concerning urgency and parliamentary scrutiny. It does not, by itself, establish that the new decrees are automatically invalid.
7. What owners should review now
Owners should check the lease commencement date, contractual and statutory term, existing extensions, written notices, rental payment history and any legally recognised ground for recovering the property. The applicable reference rent and transitional arrangements may also be critical.
Before serving a non-renewal notice or making investment decisions based on an expected expiry date, landlords should assess the deadlines, formal requirements and possible financial exposure.
Conclusion
Tenant protection is a legitimate public-policy objective, but property rights, contractual predictability and legal certainty must also be safeguarded. Whether the new burdens strike a proportionate balance requires careful, case-specific legal analysis.