Published: 09-04-2026
Summary
The rental market in Spain is going through a particularly tense moment. The shortage of supply and the sustained increase in prices have led to warnings from both the International Monetary Fund and the European Commission, which has identified the shortage of affordable housing as one of the main obstacles to residential access. Added to this scenario is a major economic factor: the conflict in the Middle East is generating inflationary pressures derived from rising energy prices, the impact of which on consumer prices has already alerted the European Central Bank. In this context, the upcoming termination of a significant volume of leases in 2026 adds additional pressure on tenants.
In view of this situation, the Government has approved Royal Decree-Law 8/2026, under Article 86 of the Spanish Constitution, with the purpose of introducing immediate containment measures. The regulation, based on the concurrence of a situation of extraordinary and urgent necessity: the extraordinary extension of the habitual dwelling lease contracts and the temporary limitation of the annual update of the rent.
I. Extraordinary Extension of Contracts (Article 1)
Article 1 of Royal Decree-Law 8/2026 (“RDL 8/2026“) establishes an extraordinary extension applicable to habitual residence lease agreements subject to Law 29/1994, on Urban Leases (“LAU“), which are in force at the time of application of the rule and whose termination, either after the mandatory extension[1] or the tacit extension[2], occurs before December 31, 2027.
In order to correctly situate this measure, it is useful to recall the ordinary sequence of duration provided for in the LAU. First, the mandatory extension of Article 9.1 LAU, which guarantees a minimum duration of five (5) years or seven (7) years if the lessor is a legal entity, is triggered. Then, if neither of the parties expresses its will not to renew, the tacit extension of article 10.1 LAU is automatically activated, which extends the contract by annual payments up to a maximum of three additional years. There is also an additional extension of up to one year provided for in article 10.2 LAU, requested by the lessee and conditioned to the accreditation of vulnerability, the acceptance of which is only obligatory for the lessor when the latter has the status of major holder[3].
It is precisely once these phases have been exhausted when the extraordinary extension of RDL 8/2026 comes into play. The tenant may request an additional extension of up to two years, articulated in annual periods, maintaining the conditions of the contract in force. Unlike the extension of article 10.2 LAU, this does not require proof of vulnerability and its acceptance is generally mandatory for the lessor.
However, the lessor may object to this extension in three cases:
- When the parties have agreed to new terms or conditions;
- When a new lease contract has been entered into; or
- When the lessor has communicated, in accordance with article 9.3 of the LAU, his need to occupy the dwelling.
In cases where the dwelling is located in an area with a stressed residential market[4], Article 10.3 LAU provides for an extraordinary extension of the lease contract, at the request of the lessee, for a maximum period of three additional years, during which the terms of the contract in force are maintained. This extension is mandatory for the lessor, except in cases in which the parties agree new terms, a new contract is signed or there is a cause for repossession of the dwelling under the terms of article 9.3 LAU.
On this basis, it should be specified that the extension provided for in RDL 8/2026 does not replace this regime, but is incompatible with it, so that, when the requirements of article 10.3 LAU are met, this will be the one that is preferentially applicable. Consequently, in these cases, the contract may be extended for up to three additional years in accordance with article 10.3, as opposed to the limit of two years provided for in RDL 8/2026.
II. Extraordinary limitation on the updating of the rent (article 2)
Article 2 introduces a time limitation to the annual update of the rent in habitual residence lease agreements subject to the LAU. The measure applies to the updates to be made between March 22, 2026, date of entry into force of the regulation, and December 31, 2027.
During this period, the rent increase may be subject to negotiation between the parties, but is subject to a maximum limit of 2%. The regime varies according to the status of the lessor under the Right to Housing Act (12/2023):
a) When the lessor is considered a large holder, the 2% limit is mandatory, without the possibility of exceeding it by agreement between the parties.
b) When this condition is not met, the parties may freely agree on the increase, although, in the absence of agreement, the 2% limit shall also apply as the maximum applicable.
In short, the regulation introduces a general limit to the updating of income, with a more restrictive regime for large holders, reinforcing rent containment in the current context.
III. Conclusions and Recommendations
RDL 8/2026 has been in force since March 22, 2026. Its continuity is conditioned to its validation by the Congress of Deputies within thirty days[5], a decision that should be adopted before April 22, 2026 by simple majority. In the event that it is not validated, it will be repealed, without prejudice to the effects produced during its validity. In particular, requests for extension validly made while the rule was in force, in respect of contracts ending between March 22 and April 22, 2026, will remain fully effective and will be maintained until their conclusion.
Likewise, the rent updates applied in accordance with article 2 RDL 8/2026 during that period will not be affected. This implies that the increases applied within the 2% limit, or those agreed between the parties where applicable, will continue to be valid and will not have to be revised or adjusted subsequently, even if the rule ceases to be in force.
From a practical perspective, tenants should verify whether their contract is subject to the LAU, accurately identify the expiration date and, if applicable, communicate in an irrefutable manner their desire to take advantage of the extension, by means of a burofax or registered letter, in order to guarantee the accreditation of such request. On the other hand, lessors should pay special attention to the requests received during this period, since, in general, they are obliged to accept them if the legal requirements are met, and it is advisable to review the contractual situation of each property, assess the possible concurrence of causes for opposition, and document communications with the lessee to prevent possible conflicts.
If you need help or advice on the need to file the informative declaration on assets abroad, at Gentile Law we have a team of experts in the field ready to advise you.
Contact us:
Lucía Goy Mastromiechele
+34 626 118 451
[1] Article 9.1 of Law 29/1994.
[2] Article 10.1 and 10.2 of Law 29/1994.
[3] Individual or legal entity that owns more than ten urban properties for residential use or a built surface area of more than 1,500m2 for residential use, excluding garages and storage rooms. This definition may be particularized in the declaration of stressed residential market environments to those owners of five or more urban properties for residential use located in said area, when so motivated by the autonomous community in the corresponding justification report, in accordance with article 3.k) of Law 12/2023.
[4] Territorial areas where there is a particular risk of insufficient supply of affordable housing, in accordance with Article 18.1 of Law 12/2023.
[5] Article 86 of the Spanish Constitution.