Spain Reapproves Rental Decrees After Election Call; Extensions, Rent Caps Take Effect

Prime Minister Pedro Sánchez's cabinet reapproved two royal decree-laws on October 6, four days after Congress voted them down with support from the PP, Vox, and Junts. The first decree entered into force on October 8 and includes a mandatory lease extension of up to two years for contracts ending before December 31, 2028, provided tenants are current on payments for the prior eight months. It also caps rent updates at 2% or the official SERPAVI index, whichever is lower, through December 2027, and blocks evictions of vulnerable tenants.

The second decree, covering indefinite contracts and tax measures such as a 10% VAT on short-term lets under 30 nights starting December 1, was not published immediately. It must be validated by the Permanent Deputation, the reduced parliamentary body that sits during the election campaign ahead of the November 29 general election. The government argues the first decree has a better chance of approval there.

“The first royal decree-law is more feasible to approve in the Permanent Deputation and that is why I have included the bulk of the measures in it.”

The new texts contain a clause protecting extensions requested during the five-week window when a similar decree was in force last spring. That earlier measure, backed by Sumar, lapsed after Congress rejected it in April, but the government maintained that properly filed requests remained valid. The Ministry of Housing estimates the extension covers roughly 5 million people.

A new online calculator lets tenants check whether a proposed rent hike exceeds the legal ceiling based on the SERPAVI reference index. If the current rent already sits above the zone ceiling, the increase is frozen entirely. The measures apply while the decree remains in force, pending validation by the Permanent Deputation.