Housing and Energy Aid in Spain: Which Measures Announced by the Government Remain in Force?

At the end of September 2026, the Spanish Government announced a broad package of measures aimed at addressing two major national concerns: housing affordability and the economic fallout from the crisis in the Middle East. However, the subsequent parliamentary process drastically altered the legal standing of these initiatives.

Below is a breakdown of which proposals were repealed by the Spanish Congress, which energy and regional relief measures remain active, and how citizens can verify their current status in the Official State Gazette (Boletín Oficial del Estado – BOE).

Updated as of October 29, 2026.

1. The Housing Package: Repealed by Congress on October 2

During the Council of Ministers meeting on September 29, two royal decree-laws regarding housing were approved: Royal Decree-Law 26/2026 and Royal Decree-Law 27/2026. While both regulations entered into force immediately upon publication in the BOE, the Plenary of the Congress of Deputies voted against their ratification on October 2, 2026.

Parliamentary Timeline for the Housing Decrees
├── 09/29/2026: Approved by the Council of Ministers
├── 10/01–10/02/2026: Published in the BOE; provisional entry into force
└── 10/02/2026: Repealed by Congress (published in BOE No. 245)

Key Measures That Were Invalidated

Following the rejection by the Lower House, the following initiatives were rendered void:

• Suspension of Vulnerable Evictions: The extension of the social safety net protecting vulnerable households against eviction through 2030 lapsed.

• Restrictions on Investment Funds: Proposed limits on speculative property acquisitions by vulture funds and the tax reform targeting SOCIMIs lost legal effect.

• Tax Relief and Subsidies: The proposed personal income tax (IRPF) deductions for earnings up to €33,000, the reduced 4% VAT rate on public housing development, and zero-interest loans for young first-time homebuyers were cancelled.

• Seasonal and Tourist Rentals: The planned 10% VAT rate on furnished holiday homes was not implemented.

• Automatic Tenancy Renewals: The mandate requiring automatic lease extensions or two-year renewals for standard rental contracts fell through.

2. The Energy Crisis Relief Package: Current Status and Validity

In contrast, Royal Decree-Law 25/2026 (the third response package under the Comprehensive Plan to Respond to the Crisis in the Middle East) was published in the BOE on September 30 and took effect on October 1. Supported by a cumulative budget exceeding €12 billion, its provisions remain active.

3. Disaster Relief (DANA) and Regional Agreements

The Council of Ministers also approved direct regional measures backed by Royal Decree-Law 24/2026 and related government grants:

• Waiver of DANA Financial Advances: The central government waived the repayment of financial advances granted following the late 2024 floods, representing a total budget impact of €44.3 million. Beneficiaries are exempt from repayment provided their 2025 income was below €42,000 and their net wealth did not exceed €300,000 (excluding their primary residence).

• Funding for Barcelona Cultural Capital: A direct grant of €20 million, spread across 49 funding streams, was approved to support cultural institutions, creative projects, and festivals in Barcelona.

• Humanitarian Support in Ceuta: New resources were allocated for reception facilities in the autonomous city, authorizing the use of Fort Mendizábal and upgrading the Hípica facility to provide dedicated places for women.

Editorial Opinion: HIGH NEWS Assessment

The gap between a political announcement made at a press conference and its actual permanence in the legal framework can cause significant confusion for the public. The rejection of both housing decrees in Congress just three days after their initial approval serves as a clear reminder that an emergency decree-law passed by the executive is not secure until it survives parliamentary ratification.

For citizens signing rental contracts, applying for tax incentives, or planning personal finances, relying solely on official press announcements is insufficient. Always consult the official bulletin to verify which regulations are active, and avoid making financial commitments based on draft legislation that may have lapsed.

Frequently Asked Questions (FAQ)

What happens to rental price updates following the repeal?

The repeal of Royal Decree-Laws 26/2026 and 27/2026 nullified the proposed changes to tenancy rules. For any specific tenancy, rent adjustments remain governed by existing legislation and the terms agreed upon in the individual lease under the Urban Leases Act (LAU).

Are petrol and diesel discounts still available at fuel stations?

Yes. Royal Decree-Law 25/2026 maintains the reduction in the Hydrocarbon Tax for the fourth quarter of 2026. The discount is 20 cents per liter in October, 13 cents in November, and 6 cents in December, with potential adjustments if energy inflation metrics breach the 15% threshold set in the decree.

Is there a tax deduction available for tenants earning under €33,000?

No. The proposed income tax deduction was part of Royal Decree-Law 26/2026, which was struck down by Congress on October 2, 2026.

Official Sources

• Boletín Oficial del Estado (BOE) — Resolution of the Congress of Deputies on the repeal of Royal Decree-Law 26/2026 — https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20526

• Boletín Oficial del Estado (BOE) — Resolution of the Congress of Deputies on the repeal of Royal Decree-Law 27/2026 — https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20527

• Boletín Oficial del Estado (BOE) — Royal Decree-Law 25/2026, of September 29 (Middle East Crisis Response Plan) — https://www.boe.es/buscar/act.php?id=BOE-A-2026-20265

• La Moncloa — Official summary of the Council of Ministers meeting, September 29, 2026 — https://www.lamoncloa.gob.es/consejodeministros/referencias/paginas/2026/refc20260929.aspx