Long-Term Rentals in Spain: New Rules for Landlords and Tenants

Spain is tightening the rules governing the rental of apartments for permanent residence. The new regulations change the process for renewing leases, extend the notice period required of landlords, and introduce a compensation mechanism for tenants. At the same time, the ability to raise rent annually has also been restricted.

The changes stem primarily from two new decrees: Royal Decree-Law 26/2026 of September 29, 2026, and Royal Decree-Law 27/2026 of September 29, 2026. The first of these introduces, among other things, extraordinary rules regarding rent adjustments and additional extensions of certain leases, while the second fundamentally changes the mechanism for further extending leases for a primary residence.

The contract may be extended for another 5 or 7 years

One of the most important changes is the new mechanism for renewing lease agreements for apartments that serve as the tenant’s “vivienda habitual,” or primary residence.

After the minimum term of the agreement has expired—5 years if the owner is an individual or 7 years if the owner is a legal entity—the agreement may enter into subsequent mandatory renewal periods.

If neither party notifies the other of its intention to terminate the contract within the required time frame, the contract will be extended for successive periods:

• 5 years, when the landlord is an individual,
• 7 years, when the lessor is a legal entity.

This is a significant change compared to the previous mechanism, which provided for further annual extensions after the end of the initial period, for up to three years.

The landlord must give the tenant six months' notice

The new regulations extend the deadline by which a landlord must notify a tenant that they do not intend to renew the lease.

As a general rule, the owner must provide such notice at least 6 months before the expiration date of the contract or the relevant extension period.

The tenant, however, is required to notify the landlord of their intention not to renew the lease at least two months in advance.

This means that the decision to terminate a lease requires the landlord to plan well in advance.

Compensation for Tenants—Up to the Equivalent of 12 Months' Rent

The new regulations also introduce a significant financial mechanism.

If the landlord effectively notifies the tenant that he or she does not intend to renew the lease, the landlord may be required to pay the tenant compensation.

The amount has been set at no less than the equivalent of 12 months’ rent for an apartment with similar characteristics. Where possible, the amount of compensation is to be calculated using the national rental price reference system.

At the same time, the regulations establish a minimum threshold: compensation may not be less than the equivalent of one month’s rent for each year of occupancy, with appropriate adjustments for shorter periods. As a general rule, compensation is payable upon vacating the apartment.

It is therefore worth emphasizing that this does not automatically refer to “12 months’ rent” paid by the tenant. The regulations base the amount of basic compensation on a comparable unit and provide a detailed method for determining it.

The owner will not always be required to pay compensation

The law provides for a number of exceptions.

Compensation will not be payable, among other things, in situations where the tenant meets the conditions for obtaining another statutory extension that the landlord must accept.

Exceptions also include specific situations regarding actual residence in the premises. For example, if the tenant has not lived in the rented apartment for more than 6 months during the previous 12 months, they may not be entitled to compensation. However, the law provides for exceptions to this rule, including in cases of justified absence due to health, work, education, or caring for family members.

Another scenario is when a tenant owns another suitable apartment in the same municipality that he or she can actually occupy.

The regulations also provide for exceptions related to the conclusion of a new lease agreement or the tenant’s rejection of a specific offer to enter into a new lease agreement for the same apartment. However, such an offer must meet the requirements set forth in the law, including guaranteeing a sufficiently long period of continued occupancy.

The owner may need an apartment for himself or his family

The regulations also provide for a specific situation in which an owner who is a natural person needs an apartment for himself or herself or for certain family members.

In such a case, it is possible to reclaim the premises for one’s own residential purposes or for the residential purposes of family members specified in the law, provided that certain legal requirements are met.

However, this is not a general rule that allows the landlord to terminate the lease at any time. Statutory conditions must be met, and the reason must be properly stated in the notice.

What about rent increases? A 2% cap through the end of 2027

This is the second very significant change resulting from Royal Decree-Law 26/2026.

For lease agreements for a primary residence (vivienda habitual) where the annual rent adjustment falls between the effective date of the decree and December 31, 2027, the parties may negotiate the amount of the adjustment.

If the rent exceeds the maximum level set by the applicable rental price reference system, the rent increase does not apply.

In all other cases, the parties may agree on the amount of the increase. If no new agreement is reached between the landlord and the tenant, the rent increase may not exceed 2 percent.

This does not mean, therefore, that the statutory limit is simply “2%” in every situation. Among other factors, it is crucial whether the parties enter into a new agreement and whether the rent falls within the applicable limits of the reference system.

Additional Extensions of Certain Existing Contracts

Royal Decree-Law 26/2026 also provides for an extraordinary extension of certain existing contracts.

If the statutory conditions are met, the tenant may request an extension of the lease for additional one-year terms, up to a maximum of 2 additional years.

This mechanism applies to specific leases whose term expires before December 31, 2028, and one of the conditions is, among other things, that the tenant pays rent on time. The regulations also provide for exceptions under which the landlord is not required to accept such an extension.

What does this mean for property owners?

For the owner of an apartment intended for long-term rental, this means, above all, the need to plan well in advance.

It is not only the contract's end date that matters, but also:

• type of owner—individual or legal entity,
• the date the contract was entered into and its term,
• deadlines for required notifications,
• any statutory rights the tenant may have to extend the lease,
• the housing situation of both parties,
• rules regarding rent adjustments,
• and, in certain cases, a state-administered rental price reference system as well.

Therefore, before deciding not to renew a lease or to change the terms of the lease, it is advisable to analyze the specific lease agreement and its legal status.

Long-Term Leases Following Recent Changes

The changes effective in September 2026 significantly strengthen the stability of leases for apartments used as a permanent residence.

For the tenant, this means greater predictability regarding continued occupancy and additional safeguards upon termination of the lease.

For the owner, however, this means having to make decisions in advance and take into account new obligations related to contract extensions, notice periods, and potential compensation.

In practice, each situation should be analyzed on a case-by-case basis, since the application of specific provisions depends, among other things, on the type of contract, the dates of its conclusion and termination, and the status of the owner and tenant.

Important

The above material is for informational and educational purposes only. It does not constitute individual legal or tax advice. In the case of a specific property or lease agreement, it is advisable to consult with a Spanish attorney or a specialist in lease law.

Legal basis: Royal Decree-Law 26/2026, of September 29, and Royal Decree-Law 27/2026, of September 29, published in the Official State Gazette (BOE).