Politics · Spain · 1 day ago
Spanish housing decree proposes indefinite rental renewals and landlord penalties
A proposed housing decree in Spain would make rental contracts renew automatically in repeated five-year periods, or seven years when the landlord is a company.
There would be no limit on the number of extensions.
Landlords would have to give six months’ notice if they did not want to renew.
Even with that notice, they could owe tenants compensation of at least 12 months’ rent.
The proposal includes exceptions, such as when an individual landlord needs the home for themselves or certain family members.
The decree was approved again by the Cabinet, but it still needs a vote in Congress’s Permanent Deputation.
If approved, it is due to take effect on November 15.
Spain’s second housing decree would require rental contracts to renew automatically in five- or seven-year extensions with no limit on renewals.
Landlords who decline to renew could have to pay tenants compensation of at least 12 months’ rent.
The measure is scheduled to take effect on 15 November if it is approved by Congress’s Permanent Deputation.
Experts consulted by Expansión warned that the proposal could sharply reduce the supply of rental homes.
- Who
- The decree affects landlords and tenants in Spain.
- What
- It proposes automatic rental renewals and compensation for landlords who refuse to renew.
- When
- It is scheduled to take effect on 15 November if approved. The article was published on 10 October 2026.
- Where
- Spain.
- Why
- The decree is intended to require continued rental renewals; the article does not state the government’s reason for proposing it.
The decree’s tenant protections
Experts warning of harm to rental supply
Renewals
The decree’s tenant protections
The decree would require repeated five-year extensions, or seven-year extensions when the landlord is a legal entity.
Experts warning of harm to rental supply
Experts consulted by Expansión warned the measure could deliver one of the hardest blows to rental supply.
Landlord decisions
The decree’s tenant protections
A landlord who declines to renew could owe at least 12 months’ rent in compensation.
Experts warning of harm to rental supply
The article reports concern about the effect of the measure on the supply of rental homes.
No direct quotes in the coverage so far.
The Council of Ministers approved the second decree again.
Expansión reported that the decree’s entry into force had been delayed until 15 November, after a vote by Congress’s Permanent Deputation.
The measure is scheduled to take effect if it is approved.
- Renewal period
- Five years, or seven years if the landlord is a legal entity
- Renewal limit
- No limit on the number of extensions
- Landlord notice
- At least six months before the contract ends
- Minimum compensation
- 12 months’ rent
- Example rent
- €900 per month
- Example compensation
- €10,800 after the initial five-year term
Sources
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