Measures to protect tenants in the face of the housing crisis and economic instability

On 22 March, Royal Decree-Law 8/2026 of 20 March on rental measures in response to the economic and social consequences of the Iran War came into force.

Under this regulation, existing tenancy agreements for primary residences where the mandatory extension period provided for in Article 9.1 of Law 29/1994 of 24 November on Urban Tenancies expires before 31 December 2027, or where the period of tacit extension provided for in Articles 10.1 and 10.2 expires, may be extended for annual periods, at the tenant’s request, for up to a maximum of two additional years, whilst maintaining all its terms and conditions. The landlord shall be obliged to accept such an extension, unless other terms and conditions have been agreed between the parties, a new tenancy agreement has been entered into, or the landlord has given notice on the need to occupy the property, in accordance with the time limits and conditions set out in Article 9.3.

Likewise, limits are established on the annual rent adjustment for residential tenancy agreements where the rent is due for adjustment because the relevant annual term falls within the period between the entry into force of this Royal Decree-Law and 31 December 2027. If the landlord is a large-scale landlord within the meaning of Law 12/2023 of 24 May, the rent increase may in no case exceed two per cent. Where the landlord is not a large-scale landlord, the rent increase shall be determined by mutual agreement between the parties, and may not exceed two per cent in the absence of such agreement.