---
title: "Spain’s New Housing Law: Key Changes for Landlords and Tenants"
description: "Royal Decree-Law 29/2026 of 6 October introduces important changes to residential lettings in Spain. \nDaniel Olabarría, Lawyer No. 4165, Buedes Legal Palma"
image: https://blog.ev-mallorca.com/hubfs/VillaQuantum01.png
---
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# Spain’s New Housing Law: Key Changes for Landlords and Tenants
**Royal Decree-Law 29/2026 of 6 October introduces important changes to residential lettings in Spain.** Its aim is to strengthen the social role of housing and increase the supply of affordable homes. The main changes concern temporary rental contracts, letting fees, deposits and the extension of existing tenancies. According to the document provided, the decree-law entered into force on **8 October 2026**. Parliamentary ratification is still pending.
## 1. Two Types of Residential Tenancy Agreements
The law distinguishes between:
- **Permanent residential tenancies:** These are intended to meet the tenant’s regular housing needs.
- **Temporary residential tenancies:** These are intended for people who temporarily live away from their usual residence for a justified and verifiable reason, such as work or another time-limited stay.
The rules also apply to the rental of individual rooms or parts of a property.
## 2. Stricter Rules for Temporary Rental Contracts
One of the key changes is that temporary residential tenancies will generally be subject to the same legal framework as rentals used as a tenant’s main residence.
Landlords and tenants will therefore no longer be free to agree on any terms they choose. Contractual clauses that disadvantage tenants in breach of the law will be invalid.
The previous special exemption for particularly large or expensive properties will also be abolished, provided the entire property is rented out.
## 3. How Long Can a Rental Contract Last?
**Permanent residential tenancies**
The statutory minimum rental period remains unchanged: five years if the landlord is a private individual and seven years if the landlord is a company or other legal entity. Subject to the applicable legal requirements, the tenant may request annual extensions until the relevant minimum period has been reached.
**Temporary residential tenancies**
A temporary rental must be justified by a clear and verifiable reason. The parties may agree on the contract duration, but it should generally not exceed 12 months.
If the temporary need continues, the contract may be expressly extended. If the legal requirements for a temporary tenancy are not met, or if more than two temporary contracts are successively concluded or amended between the same parties for the same property, the first contract may be treated as a permanent residential tenancy. In that case, the relevant minimum rental periods and extension rights will also apply.
## 4. Who Pays the Estate Agent’s Fees?
The costs of arranging a rental and preparing the tenancy agreement may not be charged to the tenant, either directly or indirectly. This applies to both permanent and temporary residential tenancies.
The prohibition also covers costs for services relating to the preparation, conclusion, administration, amendment or extension of the rental contract.
Other, non-essential services may only be charged to the tenant if the tenant has expressly requested them in writing and has been informed in advance that they are optional and what they will cost.
**Important:** The prohibition on passing estate agency and contract-related costs on to tenants is now expressly extended to temporary residential tenancies as well.
## 5. The Tenant’s Right of First Refusal if the Property Is Sold
According to the document provided, the option to waive the tenant’s statutory right of first refusal is being abolished.
This means that if a rented property is put up for sale, the tenant is intended to have a statutory right of first refusal under both permanent and temporary residential tenancy agreements. The specific legal requirements and conditions must still be observed.
## 6. How Much Can Be Charged as a Deposit?
For both types of residential tenancy, the statutory security deposit is limited to one month’s rent. Additional security may also be agreed, subject to the following limits:
- **Permanent residential tenancy:** a maximum of two additional months’ rent.
- **Temporary residential tenancy:** a maximum of one additional month’s rent.
This limits the amount of additional security landlords can request for temporary rentals.
## 7. Special Rules for Existing Rental Contracts
**Exceptional extensions of up to two years**
Certain existing rental contracts for tenants’ main residences may qualify for an additional extension of up to two years in total, granted in annual periods.
This applies to contracts where a statutory or contractual extension period, or the tacit continuation of the tenancy, is due to end before 31 December 2028.
One of the conditions is that the tenant must be up to date with rental payments and must also have paid the rent properly throughout the preceding eight months.
**Limits on rent increases until the end of 2027**
According to the document provided, special restrictions on rent increases apply until 31 December 2027:
- If the rent is above the applicable reference index, it may not be increased.
- In other cases, a rent increase may not exceed 2% unless a relevant agreement provides otherwise.
These measures are intended to protect tenants against excessive rent increases.
*------------------------------------------
Legal disclaimer: This summary is based on the document provided by Daniel Olabarría, Lawyer No. 4165, Buedes Legal, Palma de Mallorca, dated 13 October 2026. The information has not been independently verified from a legal standpoint. According to the document, parliamentary ratification of the decree-law is still pending. Individual legal advice is recommended for specific tenancy matters.*
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