Does the October 2026 rental decree affect commercial premises, offices and garages?

Question

José Manuel Alburquerque · Accepted Answer

For the most part, no. Royal Decree-Law 29/2026 (the “Real Decreto-ley”), in force since 8 October 2026, mainly reforms residential tenancies. The minimum term, the extensions, the rent limits and the ban on charging the tenant the “IBI” (the local property tax) or the letting agent's fees do not apply to commercial premises, offices or parking spaces let on their own. But some of the new rules are in the part of the law that applies to all tenancies and others may reach commercial premises if the lease does not say otherwise. In addition, the decree is awaiting ratification by Parliament (“convalidación”) and, if the “Congreso”, the lower house of the Spanish Parliament, does not ratify it, it lapses. What still applies only to residential tenancies The minimum term of five years, or seven if the landlord is a legal entity, the extensions and the new extraordinary extension of up to two years. The limits on rent, such as the IRAV, the index from the “INE” (Spain's national statistics office) that caps the annual increase, the extraordinary 2 % cap on that increase until 31 December 2027 and the limits in stressed residential market areas (“zonas tensionadas”). The ban on passing on to the tenant the IBI and the other taxes on the home and on charging the tenant the letting agent's fees or the costs of drawing up the contract. The tenant's right to leave after six months, giving thirty days' notice, without compensating the landlord. The cap of two months' rent on guarantees required in addition to the statutory deposit (“fianza”). The decree's tax measures, which change nothing for commercial premises or garages. A parking space or storage room that the same landlord lets together with the flat follows the residential rules, including the new ones. What may affect commercial premises The law has a part that is binding on all tenancies and, for commercial premises, it refers to some of the residential rules if the lease does not say otherwise. Through those two routes, the decree may affect commercial premises in the following respects: The tenant cannot be required to take out rent guarantee insurance or any similar cover. The rule is not limited to residential tenancies, so the prudent view is that it also applies to commercial premises. The tenant can require the lease to be put in writing. Both parties could already require this of each other, so little changes for commercial premises. If the lease does not deal with repairs, the new residential procedure may apply to commercial premises. If the landlord does not respond within fifteen calendar days to the tenant's written request, accompanied by a reasonable quote, or refuses without good reason, the tenant can carry out the repair and deduct the cost from the rent. If the lease does not exclude the tenant's right to buy the premises ahead of anyone else, that right is no longer lost because the premises are sold together with other properties, provided that they can be legally separated from the rest. It remains to be seen whether, for commercial premises, a waiver of that right can still be agreed, as used to be common. What counts as a non-residential use (“uso distinto del de vivienda”) also changes. Seasonal lettings of flats to live in become residential tenancies and contracts for accommodating people are excluded, which does not affect the letting of premises for a shop or a workshop, of an office or of an industrial unit. Ratification The decree is in force, but it has to be ratified by the “Congreso”, the lower house of the Spanish Parliament. As the Spanish parliament (the “Cortes”) has been dissolved for the elections on 29 November, the decision lies with the “Diputación Permanente”, the Congreso's standing committee. According to the press, the vote is scheduled for 12 November. If it is not ratified, it ceases to apply from that moment and the previous rules return, without this affecting, in principle, what was done while it was in force. With commercial premises, for example, rent guarantee insurance could again be required in new leases. Leases of commercial premises signed before 8 October are governed, in principle, by the law in force when they were signed. If they required the tenant to take out rent guarantee insurance, that clause remains valid until the lease is renewed.