Spain’s New Housing Decree: What the September 2026 Rental Reforms Could Mean for Property Owners

Spain is preparing another substantial overhaul of its rental rules. We look beyond the political headlines at what the proposed September housing decree could mean for landlords, tenants, buyers and property owners in Benahavís and the wider Costa del Sol.

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The Spain housing decree 2026 remains one of the most closely watched housing measures of the autumn. For anyone who owns, rents or is considering buying property in Spain, the important distinction is still between what has been proposed and what has actually become law.

Pedro Sánchez’s coalition government postponed the proposed Royal Decree-Law before the August political break because it had not secured enough parliamentary support. Negotiations have continued into September. On 9 September, Housing Minister Isabel Rodríguez said the government had worked on the text throughout August and was still speaking with parliamentary groups in an effort to secure agreement. In a further sign that the impasse remains unresolved, Social Rights Minister Pablo Bustinduy said on 16 September that he wanted the decree taken to Congress even without a guaranteed majority.

Two elements were specifically reconfirmed during September as remaining in the package: an extension of qualifying rental contracts until 2028 and a proposed increase to 21% IVA for tourist apartments. Other measures discussed before the summer — including the treatment of seasonal and room rentals, repairs, IBI, rental guarantees and tenant purchase rights — remain provisional until a final text is published.

For property owners around Benahavís and the wider Costa del Sol, that means the direction of travel is clearer than it was in August, but the legal position has not yet changed.

A Significant Reform — But Not a Finished One

The government has been trying to tighten Spain’s rental rules for some time, particularly where it believes seasonal or room-by-room contracts are being used to avoid the protections attached to ordinary residential leases.

An earlier rental decree, Real Decreto-ley 8/2026, briefly entered into force in March but was rejected by Congress on 28 April by 177 votes to 166, with five abstentions. It is a useful reminder that a Royal Decree-Law can take effect before its longer-term parliamentary future is settled.

A Royal Decree-Law can take effect after approval by the Council of Ministers and publication in Spain’s official state gazette, the BOE. Congress must then decide whether to validate it within the constitutional period.

That creates an unusual possibility: measures may become legally effective before their longer-term parliamentary future is known.

For owners, buyers and landlords, the sensible approach is therefore to distinguish carefully between what the government proposes, what eventually appears in a published decree and what ultimately survives the parliamentary process.

Seasonal Rentals Are Firmly in the Government’s Sights

One of the most important parts of the wider package concerns temporary or seasonal rentals. The government has continued to describe regulation of seasonal and room rentals as part of its housing agenda, although the detailed September text has not yet been published.

These contracts have perfectly legitimate uses. Someone working in another city for several months, a student attending a course, a family temporarily relocating or a person receiving medical treatment away from home may genuinely require accommodation for a limited period.

The government’s concern is different. It believes some homes that are effectively being used as ordinary residences are instead being offered through repeated short contracts, allowing landlords to avoid parts of Spain’s conventional residential tenancy framework.

Under proposals being discussed, a genuine temporary tenancy would need to state a real and demonstrable reason for its temporary character. The landlord would need to be able to justify why the arrangement was genuinely seasonal rather than simply labelling an ordinary residential tenancy as temporary.

A maximum duration of 12 months has been proposed, together with restrictions on repeated consecutive temporary contracts involving the same property and tenant. Where the temporary nature cannot be justified, the arrangement could instead fall within the rules governing a normal residential lease.

This is potentially important on the Costa del Sol, where there is a substantial market sitting between conventional long-term renting and short holiday stays.

A genuine winter rental to someone spending several months in Andalucía, for example, is not necessarily the type of arrangement the government is attempting to eliminate. What would become increasingly important is being able to demonstrate why the stay really is temporary.

Renting Individual Rooms Could Become Much Closer to a Normal Tenancy

Room rentals are another area the government wants to bring more firmly within Spain’s Urban Leases Law, usually referred to as the LAU.

The reported draft would generally treat the rental of an individual room as residential renting rather than allowing it to sit outside much of the conventional tenancy framework.

There is also a proposal intended to prevent owners from dividing a property into individual room contracts simply to charge substantially more than could be charged for the home as a whole. In areas where formal rent controls apply, room-by-room letting could therefore become subject to much tighter limits.

The intention is clear: renting rooms should not become an easy route around residential rental regulation.

For most luxury property owners in Benahavís this may have limited direct relevance. It could, however, be significant for investors elsewhere in Málaga province and for properties acquired specifically for shared accommodation.

Tenants Could Arrange Essential Repairs and Deduct the Cost From Rent

Another eye-catching part of the reported draft concerns essential repairs.

Where a defect affects the habitability, safety or health of a rented home, the proposed system would allow the tenant to notify the owner and request that the problem is resolved.

Reports on the draft indicate that the landlord could have 15 calendar days to respond, arrange the repair or offer an appropriate solution. If the owner failed to respond or refused without adequate justification, the tenant could potentially commission the necessary work and offset the documented cost against future rent.

This should not be confused with giving a tenant freedom to renovate or alter a property at the landlord’s expense. The proposal concerns genuine defects affecting the proper use, safety or habitability of the home.

Nevertheless, it would make prompt communication even more important for landlords.

For professionally managed properties this should normally be straightforward. Owners who live abroad for much of the year and manage a tenancy personally may increasingly benefit from having a dependable local point of contact who can respond quickly when genuine problems arise.

Check-In and Check-Out Reports Could Become Far More Important

Anyone who has rented out a furnished home knows how easily disagreements can arise over whether a mark, broken fitting or piece of damage was already present.

The proposed reforms attempt to reduce that uncertainty by giving greater importance to written documentation recording the condition of the home when possession is handed over.

If no signed report identifies existing defects or damage, the property could generally be presumed to have been handed over in good condition unless there is evidence to the contrary.

In practical terms, careful landlords are already doing much of this.

A dated inventory, clear photographs, meter readings and a properly signed check-in report protect both sides. If the proposed changes survive, that documentation could become even more important.

Owners May No Longer Be Able to Pass IBI to the Tenant

Under existing arrangements, certain property-related costs can sometimes be allocated to a tenant where the contract and applicable tenancy rules permit it.

The reported draft would tighten this position and prevent property taxes such as IBI from simply being transferred to the tenant where the landlord is the person legally responsible for paying them.

For the owner of a single home this may not radically change the economics of renting. Alongside insurance, maintenance, community fees and taxation, however, it is another expense that should be included when calculating the genuine net return from a tenancy.

Rent-Default Insurance Could No Longer Be Imposed on the Tenant

The government also wants to prevent landlords from requiring tenants to purchase rent-default insurance or a similar product as a condition of obtaining the property.

An owner could still choose to insure themselves against non-payment, but the proposed changes would make it more difficult to transfer that obligation or expense directly to the prospective tenant.

This would not prevent an owner from checking affordability or asking for appropriate evidence of income. Rather, it changes who is expected to pay for the landlord’s insurance against the risk of default.

Selling a Rented Property Could Become Slightly More Complicated

Spanish tenants already have certain preferential acquisition rights known as tanteo and retracto in circumstances where their rented home is sold.

The proposals would strengthen those rights.

Reports on the draft suggest that contracts may no longer be able simply to waive the tenant’s preferential purchase right. Where an individual rented property forms part of a larger portfolio or package transaction, an identifiable value may also need to be assigned to it so that the tenant has a meaningful opportunity to exercise the relevant right.

For the typical owner selling one apartment or villa, this is more likely to be a procedural issue than an obstacle to selling.

It does, however, reinforce something we would recommend anyway: establish the tenancy position before putting a rented property on the market rather than discovering complications once a buyer has already been found.

Some Expiring Rental Contracts Could Be Extended Until 2028

One of the most politically sensitive parts of the package is an extraordinary extension for certain existing residential leases.

This element has now been reconfirmed. On 9 September, Housing Minister Isabel Rodríguez said the decree still includes an extension of rental contracts until 2028 while negotiations continue with parliamentary groups.

Earlier PSOE–Sumar proposals referred to strengthened protection for qualifying tenants whose contracts expire before 30 June 2028. However, the final eligibility rules and precise mechanics should not be assumed until the decree itself is published.

A similar extension contained in Real Decreto-ley 8/2026 entered into force in March but was subsequently rejected by Congress on 28 April. That history is one reason the government is seeking parliamentary support before bringing the new package to the Council of Ministers.

The Most Controversial Question: Vulnerable Tenants and Eviction

Another proposed measure concerns tenants who are formally recognised as being in a vulnerable financial position.

The reported draft could allow courts to suspend certain eviction proceedings where a vulnerable tenant has no suitable alternative accommodation and the relevant authorities have not provided a housing solution.

Where the landlord is a private individual rather than a large property holder, the proposals have also included mechanisms intended to compensate the owner during a qualifying suspension.

This remains one of the politically sensitive areas of the package, with parliamentary groups taking different positions on the balance between tenant protection, alternative accommodation and safeguards for smaller landlords.

Unlike the rental-extension and 21% IVA proposals, this part of the package was not specifically reconfirmed in the minister’s 9 September comments. Until the final text is published, it should therefore continue to be treated as a reported proposal rather than a settled measure.

The Proposed 21% IVA on Holiday Rentals — and an Interesting Benahavís Detail

For many Costa del Sol owners, the proposal attracting the greatest attention is the planned 21% IVA treatment for tourist apartments.

This part of the package is still live. On 9 September, Housing Minister Isabel Rodríguez specifically referred to raising IVA on tourist apartments to 21% as one of the measures contained in the decree under negotiation.

At present, the straightforward rental of furnished holiday accommodation without hotel-style services is generally treated differently for IVA purposes from hotel accommodation.

Earlier published parliamentary wording proposed removing the IVA exemption for certain furnished residential rentals of 30 nights or fewer in municipalities meeting a population threshold of at least 10,000 residents.

That creates a particularly interesting position for Benahavís.

The latest 2025 municipal information published by the Junta de Andalucía places Benahavís just below that previously proposed threshold, at 9,765 residents.

However, there is now an even more important caveat: while the minister has reconfirmed the proposed 21% IVA rate, the government has not published the final September decree. We therefore do not yet know whether the earlier 30-night rule, 10,000-resident threshold or any exemptions will survive unchanged in the version eventually approved.

Benahavís has also been growing quickly. No owner should structure a rental investment around the assumption that the municipality will remain below a population threshold that may itself change before the legislation is finalised.

What About ‘Stressed Housing Areas’?

Some of Spain’s strongest rental measures only apply, or become significantly more restrictive, in officially designated zonas de mercado residencial tensionado — stressed residential market areas.

These should not be confused with simply living somewhere where property is expensive.

A formal legal process is required before the special stressed-area regime applies.

Benahavís is not currently listed among the formally declared stressed residential market areas on the Ministry of Housing’s official register.

That distinction matters. Measures associated specifically with stressed areas do not automatically apply to Benahavís merely because property values and rental demand are high.

The position could of course change in the future if Andalucía and the relevant authorities pursued a formal designation. For now, however, Benahavís should not simply be described as a stressed housing area in the legal sense.

The political position in Andalucía also became clearer in September. On 10 September, the Junta de Andalucía announced that it would challenge a central-government funding proposal reserving €90 million in direct housing grants for autonomous communities that have declared stressed residential market areas. The Junta argued that access to housing funding should not depend on adopting that regulatory model. This does not change the legal status of Benahavís, but it is relevant context when assessing how likely the stressed-area framework is to be applied in Andalucía in the near term.

Would These Measures Push Property Prices Down?

There is no simple basis for assuming a uniform fall in property values.

Spain’s housing problem is partly one of affordability, but it is also fundamentally connected to the availability of suitable housing in the places where people want and need to live.

Tighter rental regulation may give existing tenants greater security. At the same time, if some landlords decide that conventional renting has become less attractive, properties may be sold, retained for personal use or moved into other forms of occupation.

The effects can therefore pull in different directions.

In a market such as Benahavís, international purchasers, lifestyle buyers, second-home owners and high-value primary residences make up an important part of demand. Changes to Spain’s conventional long-term rental regime are therefore unlikely, on their own, to determine property values.

Changes to holiday-rental taxation could be more relevant for apartments and homes bought primarily for their rental return. Even then, the impact will depend on the eventual tax rules, the municipality, the property’s regional tourist status, community regulations and the buyer’s intended use.

For most people buying a permanent or second home in Benahavís, the quality of the property, setting, security, views, community, location and scarcity of comparable homes are likely to remain far more important influences on value.

We explored this issue in greater detail in our article on whether Costa del Sol property prices fall when communities restrict short-term rentals.

Will the Spain Housing Decree 2026 Actually Pass?

This remains the question behind all the others.

The government postponed the decree before the summer because it had not secured enough support to be confident that Congress would validate it. That position has not yet been resolved publicly.

On 9 September, Housing Minister Isabel Rodríguez said the ministry had spent August reviewing proposals from parliamentary groups and was still holding talks in an effort to bring the decree forward. In an interview published a few days later, she described the decree as still being negotiated. On 16 September, Social Rights Minister Pablo Bustinduy publicly argued that it should be sent to Congress even without a guaranteed majority.

The decree was not approved at the Council of Ministers meetings on 8 or 15 September. As of 18 September, there is therefore still no final Council of Ministers text, no publication in the BOE and no parliamentary validation vote.

For owners and buyers, the practical conclusion remains straightforward: the package is active, but it is not yet law.

What Should Property Owners Do Now?

For the moment, very little needs to change simply because negotiations on the decree have moved forward.

There is no obvious reason for an owner to abandon a legitimate seasonal rental strategy, rewrite an existing contract or make a major investment decision solely on the basis of a draft law that has not yet been approved.

What does make sense is paying attention.

Owners using seasonal contracts should already be clear about why the tenancy is temporary and retain documentation that supports that position. Landlords should keep detailed inventories, respond promptly to genuine maintenance issues and ensure rental agreements accurately reflect the intended use of the property.

Anyone considering selling a property with a sitting tenant should establish the tenant’s legal position before marketing the home.

Holiday-rental owners should also follow the IVA proposals carefully, particularly in fast-growing municipalities such as Benahavís where a population threshold could eventually become relevant.

Owners relying on holiday-rental potential should additionally consider the separate regional, community and municipal rules governing tourist accommodation. Our updated Touristic Licences in Spain guide explains the current 2026 position in more detail.

Most importantly, decisions should be based on legislation that is actually published and in force rather than on advance drafts or political headlines.

Spain’s housing policy continues to move towards tighter regulation, but the legal position described in this article has not yet changed. The next decisive step will be approval of an actual decree by the Council of Ministers and publication of its final wording.

Related Reading

Spain’s Holiday Rental Tax Proposals

What the proposed changes to tourist-rental taxation could mean specifically for property owners and buyers in Benahavís.

Do Property Prices Fall When Tourist Rentals Are Restricted?

We examine what actually happens to Costa del Sol property values when communities restrict or prohibit short-term rentals.

Can Owners Request a New Vote on Short-Term Rentals?

How Andalucía’s community voting rules work and whether an earlier decision can be reconsidered.

Sources and further reading: This article draws on material from the Spanish Government, Consejo de Ministros, Congreso de los Diputados, BOE, Ministry of Housing and Junta de Andalucía, together with reporting on the government’s continuing September negotiations. It was updated on 18 September 2026 to reflect the latest public position.

Important: This article reflects proposals and publicly available information as of 18 September 2026. No final version of the proposed housing decree has yet been approved or published. The wording, scope and implementation of individual measures may change, and some proposals may not become law. This article provides general information only and does not constitute legal, tax, financial or property valuation advice. Owners and buyers should obtain independent professional advice based on their individual circumstances.