Spain
The Spanish Government has approved a broad package of measures that will significantly affect the real estate sector
Today, the Official Gazette of the Spanish State published Royal Decree-Law 26/2026, of September 29, adopting urgent measures to protect the social function of housing and expand the supply of affordable housing. It is pending ratification by the lower house of the Spanish parliament.
In this Legal Flash, we analyze the key aspects of the Royal Decree-Law 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.