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Rental Law Changes in Spain (October 2026): What Happens to Your Contract, Extensions, and Rent Increases
The entry into force of Royal Decree-Law 26/2026 and Royal Decree-Law 27/2026 introduces substantial changes to Spain’s Urban Tenancies Act (LAU). The legal reform redefines rules governing contract duration, mandatory lease extensions, seasonal and room rentals, as well as limits on annual rent updates.
Here is a detailed breakdown of what this new regulation entails and how it affects both tenants and landlords depending on the date and status of their lease agreement.
Practical Scenarios: What Is Your Contract’s Current Status?
To clarify the practical impact of the reform, the following table summarizes how the law applies across different leasing scenarios:
| Lease Scenario | Applicable Legal Rule | Practical Impact |
| Contract signed before October 2026 | Maintains its previous general contractual terms | New extension rules apply to future renewals. Rent updates fall under the extraordinary regime of RDL 26/2026. |
| Seasonal rental | Requirement of a genuine and written justified cause (duration between 31 days and 12 months) | Without a justified and documented cause, the lease loses its seasonal status and converts into a primary residence contract retroactively. |
| Room rental | Express inclusion under the LAU when satisfying primary housing needs | Subject to general tenant protection frameworks. Total combined rent for all rooms cannot exceed the maximum rent for the entire property. |
| Rent increase / update | Tied directly to official reference price index limits | If current rent exceeds the reference index limit, no upward update is allowed. If equal or lower, maximum increase is capped at 2% unless otherwise agreed. |
How Does the New Law Affect You Based on Your Situation?
1. I signed a contract before October 2, 2026
Agreed terms remain valid for the current annual term. If the landlord formally issued a valid non-renewal notice in accordance with notice periods prior to the law, that notice retains full legal validity. However, contract renewals and extensions maturing after the entry into force of RDL 27/2026 will be governed by the updated framework.
2. My lease expires after October 2, 2026
It falls under the amended Article 10 of the LAU, extending mandatory lease protection periods unless the landlord formally communicates non-renewal adhering strictly to statutory advance notice requirements.
3. I am a landlord and want to recover my property
To prevent mandatory lease extension, landlords must strictly observe a 6-month advance notice requirement. Valid non-renewal for cases provided under the law carries a minimum compensation equivalent to 12 monthly rent installments, except under explicit statutory exceptions.
4. I hold a seasonal lease
As a general rule, seasonal contracts must last between 31 days and 12 months. The contract must explicitly state the reason for temporary occupancy (such as university studies, temporary employment relocation, or construction works) accompanied by supporting documentation. Unjustified consecutive contract renewals will be classified as legal fraud.
5. I rent a room as my primary residence
The contract is now fully protected under the LAU regarding minimum duration and lease stability. Additionally, a legal cap prevents the combined rent of all individual rooms in a property from exceeding the maximum statutory rent of the whole dwelling.
Contract Extensions and Statutory Deadlines Under RDL 27/2026
The reform of Article 10 of the LAU establishes strict minimum terms, advance notice periods, and compensation terms:
| Regulated Parameter | Individual Landlord (Natural Person) | Corporate Landlord (Legal Entity) |
| Minimum mandatory term | 5 years | 7 years |
| Landlord non-renewal notice | 6 months in advance | 6 months in advance |
| Tenant non-renewal notice | 2 months in advance | 2 months in advance |
| Without valid non-renewal notice | Mandatory extension for 5 years | Mandatory extension for 7 years |
| Validly issued non-renewal | Minimum compensation of 12 months’ rent (unless statutory exceptions apply) | Minimum compensation of 12 months’ rent (unless statutory exceptions apply) |
Rules for Annual Rent Adjustments
Regarding price reviews, the regulation sets an extraordinary framework valid until December 31, 2027. Monthly rent updates are applied under two distinct rules:
- Rents above the reference index ceiling: If the contract price exceeds the maximum limit set by the applicable reference price index, no upward rent adjustment is permitted.
- Rents equal to or below the ceiling: If the rent does not exceed the limit, annual updates cannot exceed 2% in the absence of an express agreement between parties.
Taxation: New 10% Personal Income Tax (IRPF) Deduction
RDL 26/2026 introduces a state-level income tax credit aimed at reducing housing costs for low- and middle-income tenants:
- Deduction rate: 10% credit on total amounts paid for primary residence rental.
- Income threshold: Eligible for taxpayers with an annual taxable base under 33,007.20 euros.
- Maximum deductible base: Capped at 11,630 euros annually for taxable income up to 23,007.20 euros. For incomes between 23,007.20 euros and 33,007.20 euros, the cap decreases progressively.
- Regional compatibility: The federal deduction operates independently of regional tax deductions. Concurrent application depends on specific regional tax laws.
Editorial Analysis
The new legal framework targets key operational loopholes in the market, specifically in seasonal and room rentals. Its practical success will depend on administrative oversight capacity and how regional authorities implement their preserved competencies under the royal decree-laws.
Frequently Asked Questions (FAQ)
What happens if my lease was signed before October 2026?
Existing contracts maintain their general contractual terms, but extensions maturing after RDL 27/2026 takes effect must comply with the new rules. Annual rent updates follow the caps set by RDL 26/2026. Prior valid non-renewal notices issued on time remain effective.
Does the 10% state tax deduction apply to room rentals?
Yes, it can apply provided the room lease satisfies all legal criteria to serve as the taxpayer’s primary residence and the tenant meets general income requirements.
Can a landlord charge more by renting rooms separately than renting the whole apartment?
No. Under the updated LAU wording, the sum of all room rents within a single housing unit cannot exceed the maximum legal rental price of the complete property.
Official Sources
- Boletín Oficial del Estado (BOE) — Real Decreto-ley 26/2026, de 29 de septiembre — https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20266
- Boletín Oficial del Estado (BOE) — Real Decreto-ley 27/2026, de 29 de septiembre — https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20385
- Agencia Tributaria — Tax measures introduced by Royal Decree-Law 26/2026 in personal income tax (IRPF) — https://www.agenciatributaria.es/AEAT.internet/Inicio/La_Agencia_Tributaria/Prensa/Notas_de_prensa/Notas_de_prensa_2026.shtml
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