Spain’s coalition government is pursuing a housing package that includes extending rental contract protections through June 2028. PSOE and Sumar agreed on the proposal, which Sumar estimates could affect nearly four million tenants across 1.5 million households. The measure is part of a wider housing agenda, and the government needs support beyond its coalition partners to secure parliamentary approval.
Under the proposed “reinforced extension,” tenants whose contracts expire by June 30, 2028, could request an extension. Sumar said the proposal could add almost one million people to the pool of potential beneficiaries under earlier rules. It is separate from Royal Decree-Law 29/2026, approved by the Council of Ministers on October 6 and effective from October 8. That measure lets qualifying tenants request up to two additional years on habitual-residence leases that were already in force when it took effect and are due to expire by December 31, 2028. Tenants must be current on rent and have paid on time during the preceding eight months. They must request the extension before the contract expires. The extension can be requested in annual periods, with existing contractual conditions generally maintained.
The two-year extension does not automatically renew every rental contract. Eligibility hinges on the lease’s status when the decree took effect and its scheduled expiry. Tenants must also have a qualifying payment record and make a timely request. Separately, the government’s package includes a more far-reaching proposal, reported as Royal Decree-Law 28/2026, for successive renewals of habitual-residence leases: five-year periods, or seven years when the landlord is a legal entity. The proposal would generally require landlords to give six months’ notice to recover a property. A landlord who continued renting the home but refused to renew could have to pay compensation. That amount would be the greater of 12 months’ rent or one month’s rent for each year the tenant had lived there, using the higher value in the applicable state rent-reference range.
The decree also proposes new rules for seasonal and room rentals to prevent their use as a way around standard rental protections and price caps in high-demand areas. The government plans to raise VAT on tourist apartments to 21% and tighten penalties for advertising them on digital platforms. The measures aim to curb the growth of tourist rentals, which have been blamed for adding pressure to housing markets in Spanish cities.
Another proposal, promoted by Sumar, whose leader Yolanda Díaz is Second Deputy Prime Minister and Minister of Labour and Social Economy, would extend until December 31, 2030, the suspension of certain evictions involving specified vulnerable households without an alternative housing solution. It would not create a blanket ban on all evictions. The measure has proved politically contentious amid housing insecurity and the controversy following the eviction and subsequent death of an 87-year-old woman in Madrid on September 23. The eviction provision still requires parliamentary validation.
Parliamentary approval is also impressive for the proposed longer-term renewal rules. The Permanent Deputation of the Congress was expected to vote on the housing decrees on November 12, ahead of general elections scheduled for November 29. The proposed permanent-renewal measure was due to take effect on November 15, but only if approved. Junts remains a impressive obstacle after opposing related housing measures, while Podemos has pushed for stronger eviction safeguards. Passing a temporary extension would not, on its own, guarantee support for the broader renewal proposal.
The package reflects a wider tension between protecting tenants who already have rental contracts and concerns that tighter renewal obligations could make it harder for people seeking homes to find one. El Español reported on the debate, while Infobae España detailed the proposed renewal and compensation rules. Negotiations will determine which measures win congressional backing and what compromises follow.
Spain’s housing market has seen repeated regulatory changes as the government seeks to balance tenant protections with market stability. The rental debate also comes amid broader fiscal planning. Catalonia’s government, for example, has begun work on its 2027 budget, setting new targets for public spending and economic growth. For more on regional fiscal strategies, see this overview of Catalonia’s budget process: Catalonia’s new budget planning for 2027.
Spain’s rental sector faces mounting pressure from demand, particularly in urban centres and tourist hotspots. The government’s measures aim to address affordability and discourage speculative practices amid concerns about housing security. The parliamentary process will determine which provisions take effect and how the different protections interact.
