Spain’s New Housing Decree Is Now in Force: What Changes for Landlords and Tenants

08 October 2026

A new national housing decree has entered into force in Spain, introducing changes affecting rents, vulnerable tenants facing eviction, temporary and room rentals, property taxation, tourist accommodation and access to a first home.

Royal Decree-Law 29/2026 was published in the Official State Gazette on October 7 and entered into force on October 8.

The measures apply nationally, meaning they also affect property owners and tenants in Ibiza and Formentera where the relevant conditions are met.

However, the decree still needs to be convalidated by the Diputación Permanente of the Congress of Deputies because the Spanish Parliament has been dissolved following the calling of general elections.

Certain Vulnerable Evictions Can Be Suspended Until 2030

One of the most significant measures concerns eviction proceedings involving vulnerable people who do not have alternative accommodation.

The decree extends special protection in certain cases until December 31, 2030.

The measure particularly concerns proceedings involving certain large property owners and entities whose business includes acquiring properties or portfolios of unpaid mortgage debt.

It does not mean that every eviction in Spain is automatically suspended until 2030.

The protection applies only when the specific legal requirements established by the decree are met.

The legislation also introduces a mechanism allowing certain debts to be settled to prevent the eviction of vulnerable tenants who cannot secure alternative accommodation.

New Limits on Certain Property Purchases

Until the end of 2030, certain large property owners and legal entities involved in acquiring residential properties or portfolios of unpaid mortgage loans will face restrictions when purchasing residential property below 70% of its independently assessed value.

The restriction applies to the types of entities and transactions specified in the decree.

There are exceptions, including certain acquisitions intended for affordable or social housing and purchases by public entities with housing-related purposes.

The measure is therefore not a blanket ban on every property purchase below 70% of market value.

Rental Contracts Can Receive an Extraordinary Extension

The decree creates an extraordinary extension of up to two additional years for certain habitual-residence rental contracts.

The extension must be requested by the tenant and is subject to the conditions established in the legislation.

Among other requirements, the tenant must be up to date with rent payments and must have remained up to date during the preceding eight months.

The measure applies to qualifying contracts whose mandatory or tacit extensions end before December 31, 2028.

There are exceptions, including certain agreements between the parties and specific cases involving the genuine need of the landlord or qualifying family members to occupy the property.

Rent Updates Are Limited Under Certain Conditions

The decree also maintains an extraordinary restriction on rent updates through December 31, 2027.

The exact calculation depends on the circumstances of the tenancy and the applicable reference-rent rules.

Where there is no new agreement between landlord and tenant, the increase is generally limited to 2% under the conditions established by the decree.

The rule should not be interpreted as meaning that every rental property in Ibiza automatically receives a 2% maximum under every circumstance.

Temporary Rentals Face New Requirements

The new legislation also addresses temporary rental contracts.

A temporary arrangement must have a genuine temporary purpose.

Where the stated temporary reason is not adequately justified, the contract can be treated as a habitual residential rental.

The rules also address situations in which more than two consecutive temporary contracts are entered into with the same tenant under the circumstances covered by the legislation.

The objective is to distinguish genuine temporary accommodation from arrangements being used to operate what is effectively a habitual residential tenancy.

Room Rentals Also Face a New Limit

The decree introduces a specific restriction for room rentals.

The combined rent received from renting out the different rooms of a property cannot exceed the amount that could be charged for the entire property under the applicable rules.

This is intended to prevent the division of a home into rooms from being used to obtain a combined rent above the permitted level for the property as a whole.

Rental Advertisements Must Provide More Information

Rental advertising will also become more transparent.

Under the new rules, qualifying advertisements must provide information including the applicable reference-price index and information about the rent associated with the property during the previous five years.

The legislation also reinforces the prohibition on passing real-estate agency management costs on to the tenant in circumstances covered by the rental legislation.

New Measures for Tourist Rentals

The decree also changes the tax treatment of certain tourist accommodation.

From December 1, 2026, certain furnished tourist rentals of no more than 30 nights will fall within the reduced 10% VAT rate when the conditions established by the legislation are met, including cases where the property is not the landlord's habitual residence.

The measure does not mean that every tourist rental in Ibiza automatically becomes subject to 10% VAT.

Its application depends on the precise characteristics of the rental and the services provided.

IBI Surcharges Can Reach 150% in Certain Cases

The decree also gives municipalities in designated stressed residential-market areas the possibility of introducing an additional IBI surcharge on residential properties used as tourist accommodation.

The surcharge can reach:

  • Up to 50% for qualifying tourist-use residential properties

  • Up to 100% when the owner has two or more qualifying properties

  • Up to 150% when the owner has four or more

These are maximum percentages.

They are not automatic national charges. The relevant municipality must establish the surcharge through its tax ordinance, and the legal conditions must be satisfied.

The measure takes effect from January 1, 2027.

Tax Incentives for Landlords Who Reduce Rents

The decree also introduces new IRPF incentives for certain landlords who reduce rents.

For qualifying contracts, landlords who reduce the rent by more than 5% can benefit from tax reductions, with the precise percentage depending on the circumstances.

The maximum reduction can reach 100% in certain cases in designated stressed residential-market areas.

A separate 70% reduction applies to certain social-rental arrangements.

The conditions of the relevant tax provision must be met for these reductions to apply.

A New IRPF Deduction for Some Tenants

Tenants can also benefit from a new tax deduction.

Taxpayers with an annual taxable base below €33,007.20 can deduct 10% of qualifying payments made for their habitual residence.

The maximum base for the deduction is €11,630.

That means the maximum deduction under this specific provision is €1,163.

The deduction is subject to the detailed requirements established by the legislation.

A €10 Billion First-Home Financing Programme

The decree also creates the framework for the TU CASA financing programme.

The programme has an allocation of €10 billion and is intended to help eligible people purchase their first habitual residence.

Financing can cover up to 20% of the purchase price, with a maximum of €50,000, under the conditions established by the programme.

The financing is designed to be interest-free and without commissions.

Implementation of some elements of the programme is subject to the relevant administrative development.

More Support for Social Housing

The legislation also provides €400 million for the Fondo de Vivienda de Impacto Social.

It includes additional financing mechanisms and two ICO-backed guarantee lines, including support for industrialised housing construction and affordable rental housing.

The measures form part of a wider attempt to increase the supply of affordable housing.

Permanent Price Protection for Certain Casa 47 Homes

The decree also strengthens the protection of certain public housing.

Homes owned by Casa 47, or homes constructed on residential land belonging to the state housing entity, will be subject to permanent maximum-price restrictions under the conditions established by the legislation.

The measure is intended to prevent publicly supported housing from subsequently becoming unrestricted market housing.

A Separate Housing Decree Starts on November 15

One important distinction is that not all of the housing measures announced this week are already in force.

A second measure, Royal Decree-Law 28/2026, was also published on October 7.

It concerns the stability and renewal of habitual-residence rental contracts and is scheduled to enter into force on November 15, 2026.

Among its proposed measures are longer successive extensions for qualifying contracts, longer landlord notice periods and compensation in certain circumstances when a landlord chooses not to renew.

However, these provisions should not be confused with the measures that are already effective under Royal Decree-Law 29/2026.

The second decree also requires parliamentary convalidation.

What This Means for Ibiza and Formentera

For property owners and tenants in Ibiza and Formentera, the new national rules add another layer to an already complex housing system.

The measures that are now in force include changes affecting certain eviction proceedings, rental contracts, temporary rentals, room rentals, rental advertising, property acquisitions and tax incentives.

Other changes will take effect later, including the new VAT rules from December 1 and certain IBI provisions from January 1, 2027.

Municipal action is also required for some measures, meaning that a national law does not automatically create a new charge in every municipality.

The Legal Status Remains Important

Although Royal Decree-Law 29/2026 is currently in force, it has not yet completed its parliamentary journey.

Because the Cortes Generales are dissolved, the decree must be submitted to the Diputación Permanente for convalidation.

The Spanish Government has confirmed that both housing decrees approved on October 6 require this parliamentary step.

For now, however, the first decree is legally in force from October 8.

The second decree is scheduled to enter into force on November 15, subject to its continued legal validity and parliamentary convalidation.

For landlords and tenants in Ibiza and across Spain, the most important point is therefore that the housing rules are changing in stages rather than through a single set of measures taking effect simultaneously.

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