Spain
A package of measures has been approved that will have a significant impact on the real estate sector
Yesterday, the Official Gazette of the Spanish State published two royal decree-laws which must be ratified by the Permanent Deputation of the Spanish Congress within 30 days.
- First, Royal Decree-Law 29/2026, of October 6, adopting urgent measures to protect the social function of housing and expand the supply of affordable housing (the “Housing RDL”), was published. The Housing RDL generally enters into force today, October 8, and introduces changes affecting leases and evictions, tax measures, measures to promote affordable housing and industrialized construction, and stronger protections for borrowers in the assignment of mortgage loans.
- Second, Royal Decree-Law 28/2026, of October 6, adopting urgent measures to strengthen the stability of primary residence leases (“RDL 28/2026”), was published. RDL 28/2026 will enter into force (if ratified) on November 15, 2026, and introduces measures affecting the duration of lease agreements.
In this legal flash, we analyze the key aspects of these regulations for the real estate sector, highlighting the following:
- Certain market participants will be temporarily restricted from acquiring residential properties.
- In the residential leasing market, the Housing RDL expands tenants' pre-emptive rights, extends the duration of certain primary residence leases, limits annual rent increases and introduces a new framework for short-term and room rentals.
- The Housing RDL introduces an exceptional eviction suspension regime that will remain in force until 2030. The applicable rules vary depending on the claimant's status.
- A new tax rate will apply to undistributed profits of REITs in certain circumstances.
- Short-term residential rentals will become subject to VAT and will not benefit from an exemption.
- The Housing RDL includes measures aimed at promoting affordable housing, including ICO guarantee facilities and the TU CASA mechanism designed to facilitate access to a first primary residence. It promotes industrialized construction too.
- Borrower protections in connection with mortgage loan assignments are strengthened through amendments to Act on Real Estate Loan Agreements.
For more information, please contact our Knowledge and Innovation Group lawyers or your regular contact person at Cuatrecasas.