On Thursday, Spain’s housing rules changed: local authorities must cover the debts of vulnerable tenants facing eviction, and landlords cannot evict them unless the administration provides alternative housing. The measure shifts responsibility for preventing such evictions from families in arrears to the state.
The new decree, published in the Boletín Oficial del Estado and approved by the Council of Ministers, goes further than earlier versions. When a court notifies the administration of an impending eviction, authorities have a maximum of two months to provide alternative housing. If they fail, they must pay the landlord the rent owed, including accumulated payments, as well as legal costs. The tenant’s debt is then cleared, the contract remains in force and the eviction is suspended until a new home is found. The administration assumes the debt if it does not pay the tenant’s overdue rent and legal costs within that two-month period. The Spanish government said the urgent royal decree-law on the "social function of housing" was approved by the Council of Ministers on October 6, 2026. It protects vulnerable people without alternative housing until 2030 and restricts speculative fund purchases. Separate rules govern seasonal and room rentals. The immediate political catalyst was the eviction of 87-year-old Maricarmen Abascal in Madrid, who had lived in her apartment for 71 years; the government announced a freeze on evictions of vulnerable tenants until 2030.
The decree also extends the ban on speculative purchases by so-called “vulture funds” until the end of 2030, two years longer than before. Any fund or company buying distressed housing must provide an independent appraisal, and the price must be at least 70% of market value. The measure aims to curb predatory deals and keep homes out of speculative hands. The eviction moratorium applies when the plaintiff is a fund or company that buys distressed assets and housing below market value. This protection runs until December 31, 2030.
Tenants in economic or social distress can extend their rental contracts for up to a year. Large landlords must accept these extensions unless a new agreement is signed or there is a specific legal reason. Protections are stronger in high-pressure rental markets, where landlords have less power to end contracts and tenants can renew under the same terms.
Transparency rules have also tightened. Landlords and agencies must include clear details in rental ads, including legal rent caps and whether the property is in a “stressed” area. The rules aim to prevent hidden costs and misleading offers, giving renters a clearer picture before signing.
Public housing managed by Casa 47 now has permanent price controls that must be registered. The decree closes loopholes that allowed public assets to be sold or repriced, keeping these homes from quietly moving into the free market.
The government’s message has moved beyond cases such as Abascal’s eviction. It now describes housing as the “basic concern of Spaniards” and a social right with market dimensions. Official communications frame the measures as part of a broader plan to reinforce housing as a social good and curb speculation. The plan draws on data and structural analysis, alongside an appeal to the social function of housing.
Some measures from earlier drafts remain. Tenants whose contracts end before late 2028 can request automatic yearly extensions of up to two years, provided they are up to date with payments. Unless both sides agree otherwise or the landlord proves a genuine need for the property, the original contract remains in force.
Financial assistance is also available. The “Tu Casa” program, run by the Instituto de Crédito Oficial, offers first-time buyers zero-interest loans of up to €50,000 or 20% of a property’s value. Tax breaks for tenants with low or medium incomes remain in place, as do IRPF bonuses for landlords renting at affordable rates.
The decree also closes loopholes in temporary and room-by-room rentals. Any short-term contract without a clear, documented reason will count as a standard residential lease, with the usual protections and price controls. In “stressed” markets, the total rent for all rooms cannot exceed what the whole property would rent for, blocking a common way to evade rent caps. These measures address flaws in the 2023 housing law that the Ministry says allowed widespread abuse.
Despite the focus on large-scale speculation, Spain has 24 million homes, and only about 4.4% are owned by big companies. Individuals own more than 90%. Most private owners have just one property, while only a tiny group owns more than ten. The state is taking on a bigger and costlier role in the rental market, with administrations and landlords bearing the direct impact.
The government’s first attempt to pass the rules failed in Congress. The coalition then used its majority in the Diputación Permanente to push the decrees through. The basic provisions take effect immediately, while some require further regulatory work. A second decree, focused on automatic rental contract extensions, is scheduled to start on November 15, but needs parliamentary approval within 30 days. That approval is not guaranteed. BBC News and Democrata report that earlier votes on similar housing packages were narrowly defeated in Congress, leaving a risk that the new rules could be overturned or changed if parliament does not ratify them.
For Spain’s rental sector, these changes could shift the balance toward renters and greater public oversight. Landlords have already threatened to withdraw properties from the market because of tighter controls, as previous coverage has shown. Administrations will now be responsible for tenant debts, alongside the new limits on speculative buying.
The decree makes the state a guarantor of vulnerable tenants’ rights, with local administrations facing the cost. Local authorities will have to manage that burden while the protections remain in force. Eviction is now a public responsibility as well as a private matter, with consequences for everyone involved.
