PROPERTY SEARCH
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Spain introduces new rental extensions to protect tenants in uncertain times
If approved, the new measures could allow renters in Spain to extend contracts by up to two years
Spain has introduced new rental measures that could allow tenants to stay in their homes for longer, but there’s still some uncertainty around how long the rules will remain in place.
The changes form part of a wider package aimed at easing the cost of living crisis which has arisen as a result of the conflict in the Middle East, with housing included alongside measures like lower VAT on fuel and electricity, which is already having a positive impact. For renters, the focus is on contract extensions and limiting rent increases.
Here’s a simple breakdown of what it all means.
Why are there two separate decrees?
The government split the measures into two parts, one focused on economic support and another on housing. This was done because not all parties agree on the full package and separating them increases the chances that at least some measures will pass.
What happens next?
The rental rules are already in force, but they must be approved by Congress within 30 days. If they are approved, they could stay in place until 2027. If they are rejected, they will be scrapped, although any extensions already granted will still stand.
Which rental contracts are affected?
The rules apply to standard long-term residential rental contracts. If your contract is due to expire before December 31, 2027, or you are reaching the end of a renewal period, you may be able to extend it for up to two more years under the same conditions.
Are short-term or holiday lets included?
No. The rules do not apply to temporary rentals such as holiday lets, seasonal contracts or room rentals. These continue under their usual terms.
Do tenants need to request the extension?
Yes. Even though it’s described as an automatic extension, tenants must still ask their landlord before the current contract ends.
Can landlords refuse?
In most cases, no. Landlords are expected to accept the extension if the tenant requests it. The only exceptions are in specific situations, such as if both sides agree to a new contract or if the landlord needs the property for their own use and has given proper notice.
Will the rent go up?
The terms of the existing contract stay the same. During the extension period, rent increases are limited to a maximum of 2% per year.
When did the rules come into force?
The measures took effect on Sunday after being published in the Official State Gazette on Saturday March 21.
Is political approval guaranteed?
No, and this is where things get uncertain. The government needs enough support in Congress to keep the rules in place, and that backing is not fully secured. Some parties have already said they will vote against it and others have raised concerns about the impact on landlords.
Why are some parties against it?
Critics argue that the measures put too much pressure on property owners and interfere with the housing market. Some believe the government should take more responsibility for social support rather than placing the burden on landlords.
Image: Freepk
