At the very end of 2025, the Spanish government passed a wide-ranging reform package affecting millions of citizens. The latest Cabinet meeting approved new support measures for vulnerable families and announced changes in the transport and social sectors. However, the much-anticipated Housing Plan for 2026–2030 has once again been postponed indefinitely.
The so-called ‘megadecree’ was at the center of attention, combining several key initiatives. Among them are the extension of the eviction moratorium for tenants facing hardship, as well as pension indexation. Authorities insist these measures will help maintain social stability and support the most vulnerable segments of the population.
Social shield
Minister of Inclusion, Social Security, and Migration Elma Saiz, recently appointed as the government’s official spokesperson, outlined the details of the new measures. According to her, one of the decrees includes the launch of a single transport pass, while another introduces a set of measures aimed at protecting low-income citizens.
In particular, the ban on evicting families who cannot pay rent and have no alternative housing has been extended. The prohibition on cutting off electricity, water, and gas for vulnerable households also remains in effect. In addition, the so-called ‘social electricity bonus’—a special discount on utility bills for those in need—has been prolonged.
All these measures are combined into a single legislative act together with the pension indexation, which, according to the government, should facilitate its passage through parliament. Authorities are counting on the support of lawmakers, as most of these initiatives were already approved last year.
Пенсионные изменения
In 2026, pensions in Spain will rise again. Under the new decree, labor and state pension payments will increase by 2.7%. Minimum pensions will go up by more than 7%, and for those supporting a spouse or receiving a survivor’s pension with dependents, the increase will be 11.4%. The same changes will apply to non-contributory pensions and the minimum guaranteed income (IMV).
The government emphasizes that these measures are aimed at protecting the incomes of older people and ensuring their financial security. In addition, the maximum base for social security contributions will rise by 3.9%, while the maximum pension will be indexed to inflation and an additional adjustment factor.
Authorities assure pensioners they have nothing to fear: if prices continue to rise, their payments will also be increased. In 2026, nearly 13 million pensioners across the country will be affected by the new indexation.
Transport and Environment
The transport sector has also seen significant changes. Transport Minister Óscar Puente announced an extension of current public transport subsidies through the end of 2026. Starting January 19, a new unified pass will be introduced, costing 60 euros per month (30 euros for those under 26), allowing unlimited travel on commuter trains, intercity buses, and other state-operated transport networks.
The environmental agenda includes tax benefits for citizens and companies purchasing electric vehicles, installing charging stations, or improving building energy efficiency. Tax breaks have also been introduced for those affected by natural disasters such as wildfires and heavy rains (DANA).
New exemptions from personal income tax and corporate income tax have been introduced for both businesses and individuals, aimed at encouraging investment in sustainable development and housing modernization.
Expectations and Criticism
Despite a wide range of measures, not everyone was satisfied with the government’s decisions. The Association of Rental Property Owners (Asval) strongly opposed the extension of the eviction ban, arguing that it undermines property rights and creates legal uncertainty. In their view, such steps only reduce the supply of rental housing on the market and deter investors.
Meanwhile, government officials are confident that extending the “social shield” is a necessary step in times of economic instability. They stress that similar initiatives have been in place since the start of the pandemic and have already proven effective in supporting the most vulnerable citizens.
The issue of a new housing plan remains unresolved. Its approval has been postponed again, and now the fate of the document depends on a possible extraordinary government meeting before the end of the year. No decision was made on changing the rates for the self-employed — they will remain at the current level in 2026.
Overall, the new mega-decree became one of the most discussed documents of the past year. Its adoption sparked a storm of emotions both among supporters and opponents, and its impact on the housing market and social sphere remains to be seen.
In case you didn’t know, Elma Saiz has served as Spain’s Minister of Inclusion, Social Security and Migration since 2023 and recently became the official government spokesperson. The association Asval brings together the country’s largest rental property owners and plays an active role in shaping housing policy. Óscar Puente has led the Ministry of Transport since 2023 and is known for his efforts to develop public transportation and support environmental projects.
