The Spanish Government has approved a Royal Decree-Law introducing urgent measures to protect the social function of housing and increase the supply of affordable homes. The measure was approved by the Council of Ministers on 29 September 2026, published in the Official State Gazette on 30 September and must now be ratified by the Congress of Deputies.

The legislation covers property acquisitions, protection for vulnerable people facing eviction, temporary and room rentals, taxation of tourist accommodation, income-tax deductions, public housing and financial support for first-home purchases.

Until 31 December 2028, companies, funds and other entities whose business involves acquiring property will only be allowed to purchase a home when the price is below 70% of its market appraisal value.

Exceptions are provided for homes used for at least five years as affordable or social primary accommodation, social and healthcare residences, accommodation for vulnerable groups managed by social organisations, and accommodation and care for victims of gender-based violence.

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Spain approves urgent measures on rents, evictions, tourist accommodation and first-home access. Protection against eviction

The Royal Decree-Law introduces several mechanisms covering vulnerable people facing eviction.

Until 31 December 2030, when an eviction is sought by an entity that purchases properties or portfolios of unpaid mortgage loans below market value, the court will suspend proceedings when the occupant is vulnerable and has no alternative accommodation.

For proceedings brought by other property owners, also until 31 December 2030, a court will suspend an eviction when the tenant is vulnerable, has no alternative accommodation and the public administration has failed to provide another home.

The suspension will not apply when the owner can demonstrate vulnerability and owns no more than two homes.

For evictions arising from non-payment, if the competent autonomous community does not provide alternative accommodation, it will be required within two months to pay the sums necessary to prevent the eviction.

Court proceedings will remain suspended during those two months. If the required payment is made, the proceedings will end and the rental contract will remain in force. If the autonomous community does not act within that period, the suspension will continue until it fulfils the obligation.

Temporary rentals and room rentals

The legislation amends the Urban Leases Act to introduce new requirements for temporary rentals and individual room rentals.

In temporary rental agreements, landlords will have to provide justification for the reason behind the tenant’s temporary relocation. As a general rule, these agreements will have a minimum duration of 31 days and a maximum of 12 months.

For room rentals, the combined rent charged for all rooms may not exceed the amount that would apply if the entire home were rented.

Housing taxation

Renting furnished apartments or homes will be subject to 10% VAT when the tenant provides complementary services associated with the hotel industry, including restaurant, cleaning or laundry services, or when the rental period does not exceed 30 nights.

Municipal authorities will be able to impose a surcharge of up to 50% on property tax, known as IBI, for residential properties used as tourist accommodation. This may rise to 100% when an owner has four or more properties used for this purpose.

A new national personal income-tax deduction will also be introduced. Taxpayers earning less than €33,007.20 a year will be able to deduct 10% of the amount paid for the rental of their main residence.

For landlords, the decree establishes different levels of personal income-tax deductions on property income, potentially reaching 100% for certain new contracts where the rent is reduced by more than 5% compared with the previous agreement after any applicable annual adjustment.

This may apply where a new contract is signed with the same tenant after the minimum five-year period or the final extension has ended, or with a new tenant when the rent is below the maximum applicable price under the reference price index system.

Permanently or indefinitely protected housing will be subject to the super-reduced VAT rate of 4%, including garages and associated units in the same building.

Public housing and CASA 47

The decree strengthens CASA 47, the State Housing Entity, as a tool for managing public housing and regulates the transfer of State and Social Security properties to CASA 47 for affordable housing policies.

The sale price of homes owned by CASA 47 or built on its residential land may never exceed the maximum price set for protected housing by the relevant autonomous community.

The same limit will apply to future sales. In officially protected housing, this restriction will begin once the existing protection period expires.

TU CASA loans for first-home purchases

A new financing mechanism called TU CASA will support the purchase of a first mortgaged primary residence.

Loans will cover up to 20% of the value of the home, with a maximum amount of €50,000, and will complement private financing obtained through other channels.

The loans will be granted for up to ten years at 0% interest and without fees. They will include a grace period until the mortgage has been fully repaid or for a maximum of 30 years. Homes purchased through this scheme will remain subject to a maximum resale price.

Extra extensions for rental agreements

Tenants whose rental agreements remain in force until 31 December 2028 will be able to request an extraordinary extension of up to two additional years, granted in annual periods.

The existing contractual conditions must remain unchanged during the extension. Tenants must be up to date with their rent and must have remained so during the previous eight months.

Landlords will be required to accept the extension unless different conditions are agreed between the parties or there is a demonstrated need to recover the property for themselves or family members.

Empty homes and SOCIMIs

Municipal authorities will be able to apply IBI surcharges to vacant homes. These may reach 150% when an owner has two or more properties that have remained empty for more than three years.

The decree also increases the tax on profits earned by listed real-estate investment companies, known as SOCIMIs, from residential rentals from 15% to 25%.

Reductions of 50% and up to 100% may apply depending on the number of homes these companies allocate to rental under affordability criteria.