Spain’s rental market has rarely been far from the headlines in recent years. But the well-publicised case of 87-year-old Maricarmen Abascal, evicted from the Madrid apartment she had called home for more than seven decades, brought the debate over tenants’ rights, rising rents and property ownership into particularly sharp focus, prompting protests and adding further pressure to an already intense housing debate.
Against this backdrop, the Spanish Government has introduced a wide-ranging package of housing measures affecting long-term, temporary and short-term rentals. However, the route to introducing them has proved unusually turbulent.
The Government’s original two Royal Decree-laws, 26/2026 and 27/2026, were rejected by Congress on 2 October. Following that defeat, and the subsequent announcement of a snap general election for 29 November, the Government approved two replacement Royal Decree-laws on 6 October.
The new measures, contained in Royal Decree-laws 28/2026 and 29/2026, largely retain the substance of the previous package, although some changes have been made. Royal Decree-law 29/2026 comes into force on 8 October, while the new long-term renewal provisions contained in Royal Decree-law 28/2026 are due to take effect on 15 November. Both remain subject to parliamentary validation.
Temporary rentals face tighter rules
One of the biggest changes concerns temporary or seasonal rentals. The key point is that the tenant must now have a genuine reason for needing the property temporarily rather than as their main home. This could include work, study, medical treatment or another temporary circumstance.
That reason must be clearly stated in the contract and it must be real and capable of being proved. Importantly for landlords, the burden of proving that the temporary reason exists falls on them.
Simply putting “seasonal” or “temporary” at the top of a rental agreement is therefore not enough. If there is no genuine and properly documented reason for the temporary arrangement, the contract will be treated as a habitual residential tenancy, with the corresponding legal protections applying from the date the contract was originally signed.
How long can a temporary rental last?
A temporary residential rental must be for more than 31 days and, as a general rule, no longer than 12 months.
If the genuine reason for the temporary stay continues, the parties can extend the contract by agreement. It can also continue beyond 12 months where the reason for the temporary arrangement itself genuinely lasts longer.
The legislation also tackles repeated use of temporary contracts. If a temporary tenancy exceeds 12 months without justification, or more than two consecutive temporary contracts are entered into between the same landlord and tenant for the same property, the first contract will be treated as a habitual residential tenancy.
In practice, what matters is the reality behind the rental, not simply what the contract is called.
What about existing seasonal contracts?
Existing temporary and seasonal contracts signed before the new legislation comes into force can continue under the rules that applied when they were signed until their agreed end date.
However, they cannot simply be extended under the old regime. Once the agreed term ends, the existing contract is extinguished. Any new temporary rental will fall under the new rules.
For landlords with seasonal contracts already in place, the renewal date is a sensible time to review the arrangement.
Long-term rentals are changing too
The reforms are not limited to temporary and short-term lets. Royal Decree-law 29/2026 introduces an extraordinary extension for certain existing long-term tenancies. Where a qualifying contract reaches the relevant end of its term before 31 December 2028, a tenant who is up to date with the rent and has paid it monthly during the previous eight months can request annual extensions for up to two additional years.
In general, the landlord must accept the request, although exceptions apply, including where there is a genuine and evidenced need for the landlord or certain family members to occupy the property.
Annual rent increases are also temporarily restricted. For rent reviews falling between the entry into force of Royal Decree-law 29/2026 and 31 December 2027, no increase can be made where the existing rent is already above the maximum applicable under Spain’s reference price system. In other cases, the landlord and tenant can agree on an increase, but if they do not, it cannot exceed 2%.
Further changes to long-term renewals
Royal Decree-law 28/2026 makes another significant change to habitual residential tenancies, although importantly these provisions are not due to come into force until 15 November.
Once a tenancy has run for at least five years, or seven years where the landlord is a company, it will generally renew for successive periods of five or seven years unless either party gives the required notice.
A landlord who does not want the tenancy to continue must generally give at least six months’ notice, while the tenant must give at least two months.
Landlords also face potentially significant financial consequences. If a landlord validly chooses not to renew, they will generally have to compensate the tenant. The amount is calculated by reference to the state rental price system and must be equivalent to the higher of 12 monthly payments or one monthly payment for every year the tenant has lived in the property. Where an individualised reference value is unavailable, the existing monthly rent is used instead.
Exceptions exist, including cases where an individual landlord genuinely needs the property as a permanent home for themselves or specified family members. Exceptions also apply where, for example, the tenant has another suitable home in the same municipality or accepts or rejects an offer of a new habitual residential tenancy. Transitional rules apply to existing contracts and notices already given.
Room rentals are covered too
The legislation also brings room rentals more clearly within the rules. Whether a room is rented as the tenant’s habitual or temporary home depends on its actual use. The combined rent charged for individual rooms in a property cannot exceed the rent applicable if the property were rented as a whole, with further restrictions applying in stressed residential market areas.
Short stays and the new 10% VAT rule
There is also an important tax change for short stays. From 1 December 2026, furnished apartments or homes rented to the same tenant for no more than 30 nights will generally be subject to 10% VAT. An exception applies where the rented property is also the landlord’s habitual residence.
This is separate from the new rules governing temporary residential rentals and is an important distinction for owners using properties for short stays.
What should landlords do now?
For landlords, the message is to review existing arrangements rather than assume that an old contract or rental strategy can simply continue unchanged. It is also important to recognise that the political and legal process is not yet complete: the replacement Royal Decree-laws still require parliamentary validation.
Temporary landlords should ensure they have a genuine, documented reason for using a temporary contract. Long-term landlords should check contract end dates, rent reviews and notice periods well in advance. Anyone buying an investment property should also consider how they intend to rent it as part of their legal due diligence before completing the purchase.
At Manzanares Lawyers, we advise landlords, property owners and buyers on Spanish rental and property law. If you are unsure how the new measures affect an existing tenancy or a property you are considering buying, contact our team for advice specific to your circumstances.
