Spanish government proposes rent extensions to save tenants money

The Spanish government is seeking to pass housing decree laws in the Permanent Deputation of the Congress to provide rental protections and financial relief.

These measures come following a general strike and ahead of a scheduled election campaign. One of the primary texts includes a two-year extension for rental contracts expiring between 2026 and 2029. The Ministry of Consumption estimates that this extension will benefit nearly five million people.

Based on a microsimulation of rental data from the IRPF (the Spanish tax agency), the ministry calculates that tenants will save an average of 4,341 euros. The government also plans to ban large landlords and vulture funds from purchasing housing until 2030. Additionally, the decree aims to suspend evictions for individuals who lack alternative housing options until the same year. A second decree, which is not yet in effect, proposes indefinite rental contracts.

Under this plan, owners would have to pay tenants an indemnity of 12 months of rent if they choose not to renew a contract after the first five years. However, owners can avoid this payment if they need the home for their own use or for a close relative. The Ministry of Consumption provided specific savings estimates for various regions, such as 9,152 euros per household in the Community of Madrid and 10,625 euros in Málaga.