Spain new rental law 2026: what the repeal means

October 28, 2026

Spain new rental law 2026: the essentials for landlords and tenants

The Spain new rental law 2026, Royal Decree-law 26/2026, was published on 30 September and repealed by Congress on 2 October 2026 [1][2].
The government reissued most of its measures in Royal Decree-law 29/2026, which has been in force since 8 October 2026 [14].
At 28 October 2026, Royal Decree-law 29/2026 is still awaiting a validation vote in the Permanent Deputation of Congress [16].
An earlier decree with a 2% cap on rent updates, Royal Decree-law 8/2026, was repealed on 28 April 2026 [3].
The rules in force are the Urban Leases Law (LAU) and Law 12/2023 on the right to housing [4][5].
Until 31 December 2027, annual rent updates without a new agreement are capped at 2%, and no increase applies where the rent exceeds the reference price index [14].
The INE reference index (IRAV), 2.54% for September 2026, remains the general ceiling on annual updates [4][6].
A second decree, Royal Decree-law 28/2026, is due to make tenancies renew for successive five-year terms from 15 November 2026 [15].
Rent controls apply only in declared stressed areas: 317 municipalities in five regions, none of them in the Valencian Community [7].
The general election is on 29 November 2026, and any permanent housing law will come from the next parliament [8].

What happened to the Spain new rental law 2026

The Spain new rental law 2026 was a 96-page decree-law that the government approved on 29 September 2026 and published in the BOE the next day [1].

A decree-law takes effect at once but must be validated by Congress within 30 days, and on 2 October 2026 Congress voted to repeal it instead [2].

Three days later the Prime Minister dissolved parliament and called a general election for 29 November, with housing as the central issue [8].

On 6 October 2026 the government approved Royal Decree-law 29/2026, which reissues most of the repealed measures and came into force on 8 October 2026 [14].

This guide explains what the repealed decree proposed, what the new decree reintroduces, and what landlords and tenants should do while its validation is pending.

Royal Decree-law 26/2026 was published on 30 September 2026 and repealed by Congress on 2 October 2026 [1][2].

Update, 28 October 2026: Royal Decree-law 29/2026 has been in force since 8 October 2026 and is awaiting a validation vote in the Permanent Deputation of Congress [14][16].

No resolution validating or repealing it had been published in the BOE at 28 October 2026.

Royal Decree-law 28/2026, which is also pending validation, is due to take effect on 15 November 2026 [15].

What the repealed decree would have changed

The decree touched almost every part of the rental market; these were the measures that mattered most to private landlords and tenants [1].

Area	What Royal Decree-law 26/2026 proposed
Seasonal rentals	A temporary letting only where the tenant is temporarily away from their usual home for a justified and provable reason, including room lettings	Reintroduced by Royal Decree-law 29/2026 from 8 October 2026; earlier seasonal contracts keep their previous rules until they end
Tourist lets	Maximum stay of 31 days, set by the regional tourism authority	Reintroduced by Royal Decree-law 29/2026; regional rules set the maximum within that limit
Extensions	Up to two extra years, at the tenant’s request, for contracts ending before 31 December 2028	Reintroduced by Royal Decree-law 29/2026, for tenants who have paid the rent each month for the previous eight months
Annual rent updates	Capped at 2% without a new agreement until 31 December 2027, and frozen where rent exceeded the reference index	Reintroduced by Royal Decree-law 29/2026 until 31 December 2027
Evictions	Suspension for vulnerable households without alternative housing until 31 December 2030, with compensation for some landlords	Reintroduced by Royal Decree-law 29/2026 until 31 December 2030
VAT on short stays	From 1 December 2026, VAT on furnished lets of 30 nights or less, unless in the landlord’s own home	Reintroduced by Royal Decree-law 29/2026 from 1 December 2026
Landlord income tax relief	A new scale of reductions from 100% down to 15%, depending on the rent agreed	Reintroduced by Royal Decree-law 29/2026 for contracts signed after 1 December 2026; earlier contracts keep the 90% to 50% scale

Source: Royal Decree-law 26/2026 and Royal Decree-law 29/2026 in the BOE [1][14].

The Spain new rental law 2026 also proposed limits on companies buying homes below 70% of their value and an extension of the 1.1% imputed income rate to 2026; both fell with it [1].

Both measures return in Royal Decree-law 29/2026 [14].

Why a decree-law can be repealed within days

Article 86 of the Spanish Constitution lets the government pass decree-laws in cases of extraordinary and urgent need, but Congress must vote to validate or repeal each one within 30 days of its promulgation [13].

Congress repealed the Spain new rental law 2026 in that vote on 2 October, and the repeal was published in the BOE the same day [2].

It was the second housing decree of the year to fall: Royal Decree-law 8/2026, approved in March in response to the war in Iran, included a two-year extension and a 2% cap on rent updates, and Congress repealed it on 28 April 2026 [3].

For landlords and tenants the practical lesson is the same in both cases: check whether a decree-law has been validated before relying on it.

After the repeal of the Spain new rental law 2026, the laws it amended returned to their previous wording until Royal Decree-law 29/2026 changed them again on 8 October 2026 [14].

Because Congress has been dissolved, its Permanent Deputation must now validate or repeal Royal Decree-law 29/2026 and Royal Decree-law 28/2026 [13][16].

The rules that apply to residential lettings now

Residential lettings are governed by the Urban Leases Law (Law 29/1994) and Law 12/2023 on the right to housing, as amended by Royal Decree-law 29/2026 while it remains in force [4][5][14].

Minimum term and extensions

Under Article 9 of the LAU, a residential tenancy runs for at least five years, or seven if the landlord is a company, through compulsory annual extensions at the tenant’s choice [4].

Under Royal Decree-law 29/2026, tenants whose compulsory extension ends before 31 December 2028 can ask for up to two extra years, if they have paid the rent each month for the previous eight months [14].

From 15 November 2026, Royal Decree-law 28/2026 provides that, once the minimum term has passed, the tenancy renews for further five-year periods, or seven if the landlord is a company, unless notice is given [15].

A landlord who refuses that renewal must compensate the tenant, unless one of the listed grounds applies, such as needing the home for their family [15].

Our guide to the legal aspects of renting in Valencia explains notice periods and the landlord’s right to recover the home for family use.

Annual rent updates

Under Article 18 of the LAU, rent can be updated once a year only if the contract says so, and the increase cannot exceed the index set by the 11th additional provision [4].

That index is the INE’s reference index for rental updates (IRAV), which applies to contracts signed after 26 May 2023 [6].

Until 31 December 2027, Royal Decree-law 29/2026 limits any update not covered by a new agreement to 2%, and allows no increase where the rent exceeds the reference price index [14].

The INE reference index that caps annual rent updates stood at 2.54% for September 2026, published on 14 October 2026 [6].

Stressed residential areas

Law 12/2023 lets regions declare stressed residential market areas, where rents on new contracts are contained and tenants can request extra extensions [5].

At the latest official list of 29 July 2026, 317 municipalities in Catalonia, the Basque Country, Navarre, Galicia and Asturias had been declared, covering 9.3 million people [7].

No municipality in the Valencian Community appears on that list, so these rent controls do not apply in Valencia, Alicante or Castellón.

317 municipalities in five regions are declared stressed residential areas, and none of them is in the Valencian Community [7].

Tenants’ protections under Law 12/2023, including the rules on evictions and large landlords, are set out in our guide to housing rights in Spain.

Landlords: tax relief and VAT under the current rules

For contracts signed between 26 May 2023 and 1 December 2026, Article 23.2 of the Personal Income Tax Law reduces net income from letting a home by 90%, 70%, 60% or 50%, depending on whether the property is in a stressed area, the rent was lowered, the tenant is young or the home was recently renovated [9].

The 50% reduction is the general case, and it is the one that applies to most landlords in the Valencian Community, where no stressed areas have been declared [7][9].

Royal Decree-law 29/2026 rewrote Article 23.2 from 8 October 2026, with reductions ranging from 100% down to 15% [9][14].

The new scale applies to contracts signed after 1 December 2026 by landlords who are not large holders, and rewards rents that are lowered, set below the reference price index, let to tenants aged 18 to 35 or located in stressed areas [14].

Where a new contract raises the rent on the previous one, the reduction falls to between 40% and 15%, depending on the size of the increase [14].

An 80% reduction applies during tacit annual extensions where the rent does not exceed the reference price index and the five-year minimum term ends after 1 December 2026 [14].

Until 30 November 2026, furnished short lettings remain exempt from VAT unless the landlord provides hotel-type services such as cleaning, laundry or catering, as our guide to VAT on short-term tourist rentals explains [10].

From 1 December 2026, Royal Decree-law 29/2026 makes furnished lets of 30 nights or less subject to VAT, unless the landlord lives in the home, provided the decree has not been repealed by then [14].

Non-resident landlords pay non-resident income tax on their rent, as our guide to non-resident income tax in Spain explains.

Seasonal and tourist lets in the Valencian Community

Since 8 October 2026, Royal Decree-law 29/2026 has reintroduced the stricter definition of the Spain new rental law 2026: a temporary letting is valid only where the tenant is temporarily away from their usual home for a justified and provable reason [14].

Seasonal contracts signed before 8 October 2026 keep their previous rules until the agreed term ends, and then expire without extension [14].

The decree also limits tourist lets to stays of no more than 31 days, within the maximum set by the regional tourism authority [14].

A temporary contract must state its cause, the landlord must be able to prove it, and without it the letting is treated as a residential tenancy [14].

Holiday lets are governed by regional tourism rules, which in the Valencian Community require registration in the regional tourism register, among other conditions, as our guide to short-term rentals in Spain explains.

What landlords and tenants should do now

At 28 October 2026, these steps reflect the position after the Spain new rental law 2026 was repealed and its measures were reissued.

Step	Action
1	Apply annual rent updates only if the contract provides for them, and within 2% without a new agreement until 31 December 2027
2	Answer any request for the two-year extension, which Royal Decree-law 29/2026 reintroduced
3	Check that every seasonal contract states its temporary purpose and keep evidence of it
4	If you signed or changed a contract on 1 or 2 October 2026, have it reviewed
5	Check the BOE for the validation or repeal of Royal Decree-laws 28/2026 and 29/2026 before relying on them

Common mistakes after the repeal

Assuming the 2% cap on rent updates disappeared with the repeal.
Ignoring a tenant’s request for the two-year extension reintroduced on 8 October 2026.
Applying stressed-area rules in Valencia, where none have been declared.
Forgetting that VAT on furnished lets of 30 nights or less is due to start on 1 December 2026.
Using seasonal contracts for what are, in fact, permanent homes.

Landlords facing an occupied property should read our guide to squatters in Spain, which covers the procedures that differ from tenant evictions.

The election and the next Spain new rental law

When Congress was dissolved on 6 October 2026, all bills still before it lapsed under Article 207 of the Rules of the Congress [11].

Royal Decree-laws 28/2026 and 29/2026 did not lapse with the dissolution, because their validation passes to the Permanent Deputation of Congress [13][16].

Any permanent replacement for the Spain new rental law 2026 will have to come from the parliament elected on 29 November 2026.

Our guide to the Spain general election 2026 and foreign residents explains the timetable and what a caretaker government can do.

We will update this guide as soon as the vote on Royal Decree-law 29/2026 is published in the BOE.

How Delaguía y Luzón can help

Our property law team in Valencia has advised landlords, tenants and investors since 1960.

We review leases and seasonal contracts, rent updates and tax relief under the Spain new rental law 2026 position, and act for clients in tenancy disputes.

Speak to our property team about your lease

Contact our legal team for personalised guidance on your case.

We work in English, French, Spanish and Russian from our office in Valencia.

Email: felix.delaguia@delaguialuzon.com
Phone: +34 963 74 16 57
Office: Avinguda Regne de València, 6, 1º-2º, 46005 Valencia

Frequently asked questions about the Spain new rental law 2026

Is the Spain new rental law 2026 in force?

Not as Royal Decree-law 26/2026, which Congress repealed on 2 October 2026.

Most of its measures returned in Royal Decree-law 29/2026, in force since 8 October 2026 and awaiting validation at 28 October 2026.

Is there a 2% cap on rent increases?

Yes, for now.

Royal Decree-law 29/2026 caps updates at 2% without a new agreement until 31 December 2027, unless the decree is repealed.

How much can my landlord raise the rent this year?

Only if the contract allows an annual update.

Until 31 December 2027, the increase is limited to 2% without a new agreement, and no increase applies where the rent exceeds the reference price index.

The IRAV, 2.54% for September 2026, remains the general ceiling.

Can I ask for a two-year extension of my tenancy?

Yes, while Royal Decree-law 29/2026 remains in force.

It applies where your compulsory extension ends before 31 December 2028 and you have paid the rent each month for the previous eight months.

Are there rent controls in Valencia?

No.

No municipality in the Valencian Community has been declared a stressed residential area.

Do I have to charge VAT on short furnished lets from December?

Yes, from 1 December 2026, unless Royal Decree-law 29/2026 is repealed first.

Furnished lets of 30 nights or less become subject to VAT unless the landlord lives in the home.

What happens to a contract signed while the decree was in force?

Royal Decree-law 26/2026 was in force for a very short period.

If you signed or changed a contract on 1 or 2 October 2026, contact us to review it.

What tax relief do landlords get now?

For contracts signed up to 1 December 2026, net rental income from a home is reduced by 90%, 70%, 60% or 50%.

Most landlords in the Valencian Community apply the 50% reduction.

For contracts signed after that date, Royal Decree-law 29/2026 sets reductions from 100% down to 15%.

Will the next government bring back these measures?

The current government reissued most of them in Royal Decree-law 29/2026 on 6 October 2026.

The Permanent Deputation of Congress must still validate it, and the parliament elected on 29 November 2026 will decide on any permanent law.

Where can I check whether my area is a stressed area?

The Ministry of Housing publishes the list of declared areas on its website.

The BOE also publishes each quarterly update.

References

Housing and Urban Planning