Rental housing: what changes under Royal Decree-Laws 29/2026 and 28/2026

Royal Decree-Law 29/2026 of 6 October entered into force on 8 October 2026. It changes the rules on residential leases, temporary rentals and room rentals, rent updates, expenses, guarantees and extraordinary extensions.

Royal Decree-Law 28/2026 will enter into force on 15 November 2026 and will reform the general rules on the duration, extension and non-renewal of habitual residence leases.

Entry into force
Extraordinary extensions
Temporary rentals
Room rentals
Rent updates
Fees and expenses
Guarantees and repairs
Changes from 15 November

1. Entry into force

Royal Decree-Law 29/2026 was published in the Official State Gazette on 7 October and entered into force the following day. Its rules apply to habitual residence leases, temporary housing and partial rentals, including rooms, without prejudice to the applicable regional and local rules.

2. Extraordinary extensions of existing leases

Certain existing habitual residence leases may be extended for up to two additional years, year by year, when the mandatory extension, tacit extension or tacit renewal ends before 31 December 2028.

The tenant must be up to date with rent payments and must have paid monthly during the previous eight months. The existing terms remain in force during the extension. The landlord must accept the request except where the parties agree otherwise, a new lease is signed, or there is a genuine and documented need for the property for the landlord or close family members.

3. Temporary rentals: a genuine and documented reason

A temporary housing lease covers the tenant's housing needs while they are temporarily away from their usual residence for a justified and documentable reason. That reason must be expressly stated in the agreement, and the landlord bears the burden of proving it.

The parties may agree the term freely, but it must exceed 31 days and generally may not exceed 12 months. If the lease exceeds that period without sufficient justification, or more than two consecutive temporary leases are signed between the same parties for the same property, the first lease may be treated as a habitual residence lease with all the statutory protections.

4. Room rentals

Renting a room or part of a property is expressly covered by the rules for habitual or temporary housing when it meets the tenant's residential need. The combined rent of all rooms rented at the same time may not exceed the rent that could be charged for the entire property.

In stressed residential market areas, the applicable rent limits must also be respected. Dividing a property into rooms cannot be used to circumvent those limits.

5. Rent updates

Rent may only be updated on each anniversary of the lease and where there is an express agreement. If the agreement provides for an update but does not identify an index or method, the Reference Index for the Annual Update of Residential Lease Contracts (IRAV) applies and sets the maximum limit.

For anniversaries falling between the entry into force of Royal Decree-Law 29/2026 and 31 December 2027, any increase may not exceed 2% where the parties do not reach a new agreement. If the rent is above the maximum limit under the reference-index system, no increase may be applied.

In stressed market areas, the starting rent of a new lease generally may not exceed the last rent applicable during the previous five years, after the permitted update. New costs or services may not be added to circumvent that limit.

6. Agency fees, expenses and taxes

Real-estate management and lease-formalisation costs may not be passed on to the tenant, directly or indirectly, regardless of the label used. A non-essential service may only be charged if the tenant expressly requests it in writing after being told that it is optional and informed of its cost.

General expenses may only be passed on where there is a written agreement stating the annual amount. Taxes associated with the property may not be imposed on the tenant unless the tenant is legally liable for them.

7. Guarantees, repairs and handover

An additional guarantee on top of the statutory deposit may not exceed two months' rent for residential leases of up to five years, or seven years where the landlord is a legal entity. For temporary leases, the limit is one month's rent. The landlord may not require the tenant to take out rent-default insurance.

Where damage affects habitability, safety or health, the tenant may request repairs in writing and attach a reasonable estimate. The landlord has 15 calendar days to respond. If there is no response or an unjustified refusal, the tenant may carry out the necessary work and deduct its documented cost from future rent.

At the end of the lease, the parties must record the condition of the property in writing. If no damage is recorded, the property is presumed to have been handed over in suitable condition unless proven otherwise.

8. What changes on 15 November 2026

Once at least five years of the lease have elapsed, or seven years where the landlord is a legal entity, the agreement will be extended for successive periods of the same length unless either party gives notice of non-renewal.

The landlord must give at least four months' notice and the tenant two months' notice. The law also provides for compensation where the landlord's non-renewal is not based on a statutory ground. Transitional rules apply to existing leases depending on the date of the relevant expiry.

Conclusion

Before signing a lease or giving notice of non-renewal, it is important to check the real purpose of the tenancy, the temporary reason, the rent, the expenses, the guarantees and the notice periods. The specific outcome will depend on the lease date, the property and the applicable regional and local rules.

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This article is for information purposes only and does not replace legal advice.