What does the October 2026 decree change for tenancies?

Question

José Manuel Alburquerque · Accepted Answer

Royal Decree-Law 29/2026 (the “Real Decreto-ley”), in force since 8 October 2026, makes major changes to the “Ley de Arrendamientos Urbanos” (LAU), Spain's urban tenancies act. It requires a genuine reason for seasonal letting, which is renamed temporary residential tenancy. In new agreements it prohibits passing the IBI, the local property tax, on to the tenant, requiring the tenant to take out rent guarantee insurance or agreeing compensation if the tenant leaves early. For tenancies in force, it provides an extension of up to two years and caps rent increases at 2 % until the end of 2027. It is awaiting ratification by Parliament (“convalidación”). The new rules A temporary residential tenancy needs a reason stated in the agreement, such as a move for work or a course of study. It lasts more than 31 days and, as a rule, no more than twelve months. If the reason is missing or more than two consecutive agreements are made with the same tenant, it is a residential tenancy of a main home from the outset, with its minimum of five years, or seven if the landlord is a legal entity, such as a company. Renting a room to live in is a residential tenancy. The total of the rents for the rooms cannot exceed the rent for the whole flat. Catalonia also has its own rules. The IBI and other taxes cannot be passed on to the tenant, unless the tenant is the person liable to pay them. The tenant cannot be required to take out rent guarantee insurance. If the tenant leaves after six months with thirty days' notice, it cannot be agreed that they pay compensation. The tenant's right to buy ahead of anyone else can no longer be waived and continues to apply even if the flat is sold together with others. If the landlord does not reply within fifteen calendar days to a written request for a repair accompanied by a quote, the tenant can carry out the repair and deduct its cost from the rent. The landlord's allowance under the “IRPF”, Spain's personal income tax, also changes, especially for residential tenancies of a main home signed from 1 December 2026. Agreements already signed Most of these rules apply to agreements signed or renewed since 8 October 2026. In earlier ones, clauses that were valid remain valid in principle, although some, such as the one on the IBI, may end up in the courts. Earlier seasonal lettings continue as they were until their term ends. Residential tenancies of a main home currently in force are, however, subject to these two measures: An extraordinary extension of up to two years that the tenant can request if the five or seven years of their agreement end before 31 December 2028, or when the extension of up to three years or the tacit month-by-month renewal ends. The tenant must be up to date with the rent and have been so for the previous eight months. In stressed residential market areas (“zonas tensionadas”), like Barcelona, those areas' own three-year extension applies in principle. A cap on rent increases until 31 December 2027. Unless otherwise agreed, they cannot exceed 2 %. If the rent already exceeds the maximum value of the national reference rent index for that home, it cannot rise at all. In addition, the decree suspends until 31 December 2030, subject to conditions, evictions of vulnerable people with no other home. Ratification The “Congreso”, the lower house of the Spanish Parliament, has to ratify the decree, that is, confirm it in a vote, or it is repealed. With Parliament (the “Cortes”) dissolved, the decision falls to the “Diputación Permanente”, the Congreso's standing committee. The vote is expected on 12 November 2026, although the date is not official.