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Spain’s New Long-Term Rental Rules: What Changes in October 2026?

A dated guide to Spain’s October 2026 rental reforms: extensions, rent updates, fees and the separate renewal rules scheduled for November.

Published · 6 min read

By Costa de Oro · Real-estate agency · Marbella & Costa del Sol

People reviewing and signing property documents with an agent
Illustrative photograph · Ivan S / Pexels
Rental investment calculatorPut the guide into practice with your own numbers.

Start with the two different effective dates

Status checked on 9 October 2026. Royal Decree-law 29/2026 was published on 7 October and generally entered into force on 8 October, with exceptions for provisions carrying their own dates. It changes parts of the Urban Leases Act (LAU) and introduces extraordinary rental measures. It is a decree-law subject to parliamentary validation, so its status must be rechecked before acting.

Royal Decree-law 28/2026 is a separate text, published on the same day but scheduled to enter into force on 15 November 2026, subject to validation. Its longer renewal periods and non-renewal compensation are not the general rules already in force on 9 October. This guide concerns main-home residential letting, not tourist accommodation, and is a dated overview rather than individual legal advice.

An extraordinary extension is conditional, not automatic for every tenancy

The fifth final provision of Decree-law 29/2026 allows qualifying main-home tenants to request annual extensions totalling up to two additional years, retaining the existing contractual terms. It concerns contracts in force at commencement and the expiry stages specified in the provision. For the mandatory-extension stage, the text requires expiry before 31 December 2028; it also identifies particular tacit-extension and Civil Code holdover situations.

The tenant must be up to date with rent and have been so monthly during the previous eight months. Acceptance is generally compulsory when the conditions apply, but there are exceptions involving agreed terms, a new contract and a real, evidenced need for occupation meeting the statutory conditions. A qualifying stressed-area extension takes priority and cannot be added to this one. An agreed renewal or new contract reducing rent by at least 5% also excludes this mechanism.

Keep the contract, payment history and proof of any request or notice. Have the actual expiry stage and exceptions checked; a headline saying “two more years” is not enough to decide eligibility.

Separate an annual rent update from a new asking rent

The sixth final provision covers annual update anniversaries between commencement and 31 December 2027. Where rent exceeds the applicable maximum under the reference-price system, it provides for no increase. In other cases it refers to a new agreement between the parties and, without one, an increase no higher than 2%.

That does not create a universal automatic 2% rise. The amended LAU article 18 also addresses the express update agreement, anniversary and IRAV limit. Check those rules together, the contract’s date and the applicable transitional regime. Do not assume that agreeing a figure removes every other statutory ceiling.

Illustration only: if a 2% ceiling applies to a €1,000 rent, the maximum resulting figure under that ceiling is €1,020. A lower applicable limit or the absence of a valid right to update can produce a different result. Initial rent limits in formally declared stressed areas are a separate question; do not assume that every Costa del Sol address has that designation.

Review fees and the actual reason for the tenancy

The revised LAU article 20 prohibits passing agency-management and contract-formalisation costs to the tenant, directly or under another label. It covers preparation, management, amendments and renewals. A genuinely non-essential optional service can only be charged under the stated conditions, including the tenant’s express written request and prior information about its optional nature and price.

The revised wording also addresses housing-related taxes, agreed general expenses and separately metered services; these are not all interchangeable charges. Have the itemised schedule and the rules applicable to an existing contract reviewed before changing who pays.

For new temporary-housing arrangements, the reform requires a real, provable reason for displacement, expressly recorded in the contract. Calling a main-home tenancy “11 months” does not establish that reason. Earlier temporary contracts have their own transitional provision. Check the actual use and signing date instead of simply changing the heading on a template.

The November renewal reform needs a separate timeline

If it takes effect as published, Decree-law 28/2026 replaces the relevant renewal mechanism with successive five-year periods, or seven years where the landlord is a legal entity, after the statutory minimum period and absent a valid non-renewal notice. Its general notice periods are six months for the landlord and two for the tenant. It also provides for landlord-funded compensation in certain non-renewal cases, with statutory exceptions and a defined calculation; it is not a payment owed whenever a tenant moves out.

The transitional rules matter now when planning. Valid landlord notices sent before publication on 7 October retain their effect without generating that compensation. Contracts already in the earlier annual-extension period continue to its end, and some contracts with less than six months remaining at commencement retain a four-month landlord-notice route. The text also coordinates extraordinary extensions rather than simply adding every period together.

Ask for advice before sending or relying on a non-renewal notice. Publication date, effective date, notice date and contract expiry are four different dates. Do not promise vacant possession or claim compensation solely from a news summary.

What landlords, tenants and buyers should check next

Create a one-page record of signing date, actual use, landlord type, current contractual stage, expiry, notices, payment history, update clause and any applicable area declaration. For an occupied-property purchase, request the tenancy documents before valuing the expected income or availability of the home.

Recheck the BOE text and parliamentary outcome at the time of any decision. The wider package also contains tax, repair and judicial-protection measures that this focused guide does not explain in full. A qualified independent lawyer should assess the contract and proposed action; Costa de Oro can help with the property search and commercial assumptions.

Review your rental cash-flow assumptions

Common questions

Are the November rules already in force?

Not as of this guide’s 9 October 2026 review. Decree-law 28/2026 specifies 15 November, subject to validation, and contains transitional rules using earlier dates.

Does every tenant automatically receive two extra years?

No. The extraordinary extension requires a request, an eligible contract and expiry stage, payment conditions and a check of the exceptions.

Can every landlord increase rent by 2%?

No. The 2% provision is conditional and must be read with the contract, the annual-update rules and any applicable lower limit. It is not an automatic entitlement.

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