The new housing rules in Spain – what do they really mean for tenants and landlords?

If you rent or let out a home in Spain, you have probably already noticed it: the rules have changed – and they are here to stay. In recent years, Spain has introduced the most extensive changes to housing and rental legislation in decades, and for many people this has created confusion, frustration, and relief.

But what are the new housing rules actually about? Who do they benefit – and who do they place greater demands on?

In this blog post, we explain the new rules in clear and accessible language and look at what they mean in practice for both tenants and landlords.

Why has Spain introduced new housing rules?

The background is a housing crisis that has particularly affected large cities and popular coastal areas. Rents have risen significantly, while wages have not kept pace. At the same time, short-term rentals and investment properties have reduced the number of homes available for year-round living.

With the national Housing Law (Ley por el Derecho a la Vivienda), which came into force in 2023 and has since been supplemented by regional regulations, the government has sought to make the housing market more social, stable, and predictable.

In short: housing should increasingly be a home – not just an investment.

What do the rules mean for tenants?

Greater security and longer contracts

For tenants, the biggest change is undoubtedly increased security. Rental contracts for permanent residence must now generally have:

• a minimum duration of 5 years if the landlord is a private individual
• a minimum duration of 7 years if the landlord is a company

This means tenants no longer risk being terminated after a short period without valid grounds.

Caps on rent increases

Previously, rents could be adjusted in line with inflation – which in some periods resulted in steep increases. This has now changed.

Rent increases are limited and regulated via a state index, which typically lies below general inflation. In areas under particular housing pressure, there are even fixed limits – including for new rental contracts.

For tenants, this means more predictable housing costs.

Better protection against eviction

Tenants in financially vulnerable situations are now better protected. In certain cases, evictions can be postponed, and public authorities may become involved to ensure that no one is left without housing alternatives.

Lower upfront costs

A concrete relief for many tenants is that agency fees and administrative costs for setting up the rental contract must, as a general rule, be paid by the landlord – not the tenant.

If the property is sold

If a rented property is sold, the lease continues unchanged. The new owner takes over the property with the tenant, who can remain under the agreed terms.

What do the rules mean for landlords?

Less flexibility – more stability

For landlords, the rules entail more restrictions, particularly regarding rent increases and re-letting in high-pressure areas. In return, longer contracts provide more stable tenancies and fewer vacant periods.

Tight housing markets and rent caps

In areas declared as so-called “stressed housing markets,” special rules apply. Here, rent may not exceed established reference indices, and larger landlords are subject to stricter requirements.

Tax incentives as a counterbalance

To balance the increased regulation, the state has introduced tax incentives. Landlords who keep rents below certain thresholds or rent to specific groups can benefit from higher deductions on rental income.

Stricter rules for temporary contracts

The popular 11-month contracts have come under scrutiny. Temporary rentals must now be objectively justified – for example, by studies or temporary work. Otherwise, they risk being considered standard long-term contracts with full tenant rights.

Remember: rules vary by region

Although the Housing Law is national, the regions have significant influence. Catalonia and other major urban areas, in particular, have introduced or announced further restrictions. This means that the specific rules can vary considerably depending on where the property is located.

Quick checklist

For tenants

• Does your contract have the correct duration?
• Is the rent increase lawful?
• Is the landlord paying the agency fee?
• Is the property located in a regulated area?

For landlords

• Does the rent comply with the applicable indices?
• Is the contract length correct?
• Is a temporary lease properly justified?
• Have you explored possible tax benefits?

Conclusion

The new housing rules in Spain change the rules of the game for both tenants and landlords. For tenants, they mean greater security and fewer unpleasant surprises. For landlords, they mean more requirements – but also greater stability and clearer frameworks.

No matter which side of the lease you are on, it is more important than ever to know the rules and stay informed about regional differences.

This blog post is general information and cannot replace legal advice.