What happened to the rent decrees
In 2026 the Government approved three decree-laws on renting, and Parliament struck down all three. A decree-law applies from its publication in the Official State Gazette (BOE), but if Parliament does not ratify it, it is repealed.
- Royal Decree-law 8/2026 came into force on 22 March. On 28 April Parliament did not ratify it, with PP, Vox and Junts voting against.
- Royal Decree-laws 26/2026 and 27/2026 were approved on 29 September and came into force on 1 and 2 October. On 2 October Parliament repealed them, by 172 votes in favour and 178 against the first, and 166 in favour and 184 against the second. PP, Vox, Junts and UPN voted no, and on the second also PNV and Coalición Canaria.
We summarise what they proposed, what still applies and what landlords and tenants should check now. Situation as of 5 October 2026.
The March decree: two-year extension and 2% cap
Royal Decree-law 8/2026 had two main measures:
- An extraordinary extension, in annual periods and for up to two years, which tenants of a main residence could request if their contract expired before 31 December 2027.
- A 2% cap on the annual rent update: always for large landlords and, for others, unless the parties agreed otherwise.
It was in force for just over a month. Since 28 April that extension can no longer be requested nor that cap applied.
The September decrees: what was going to change
Royal Decree-law 26/2026 was the broadest. Among other things, it:
- Limited rent updates for main residences until 31 December 2027.
- Brought back an extraordinary extension of up to two years for contracts expiring before 2029.
- Required a genuine reason for seasonal rentals, with a maximum of 12 months; beyond that, the contract would be treated as a main residence lease.
- Prevented the total rent of rooms let separately from exceeding the rent for the whole flat.
- Suspended until 2030 evictions of vulnerable households without alternative housing.
- Added tax deductions for tenants and landlords, and an interest-free public loan of up to 20% of the price, capped at 50,000 euros, to buy a first home.
Royal Decree-law 27/2026 changed the length of contracts. At the end of the minimum five or seven years, the contract would renew automatically for new five-year periods (seven if the landlord is a company). The landlord would have to give six months' notice and, if they did not want to renew, pay the tenant compensation of at least twelve months' rent, with exceptions such as needing the home for themselves or a relative.
What still applies
With the decrees gone, renting is governed by the Urban Leases Act (LAU) as amended by the 2023 Housing Act:
- Minimum term of five years, or seven if the landlord is a company.
- After that, if nobody gives notice, annual extensions for up to three more years. The landlord must give four months' notice and the tenant two.
- In areas declared stressed (zonas tensionadas) by the regional government, the tenant can request an extraordinary extension of up to three years, with exceptions.
- Vulnerable households can request one more year when the landlord is a large owner.
- Rent is updated as agreed in the contract, subject to the INE reference index (IRAV) cap for the contracts to which it applies.
And what was requested while they were in force?
This is the question that will raise the most doubts. The general rule is that laws are not retroactive: what already took effect while the decree was in force may stand, and what had not yet happened can no longer rely on it.
The difficult case is the tenant who requested the March decree's extension for a contract expiring after 28 April. There are arguments both ways and it will probably end up being settled by the courts. Here the dates are everything: when it was requested, when the contract expired and what the landlord replied.
What to check now so you do not lose money
If you are a landlord:
- That the rent update is the one your contract states, neither a cap that no longer exists nor an increase the law does not allow.
- That non-renewal notices are sent with the correct notice period and in a way that leaves a record.
- That your seasonal contracts have a genuine, provable reason. The courts are already scrutinising them closely.
If you are a tenant:
- When your contract expires and how long you can stay under the extensions that do still apply.
- If you requested an extension under any of these decrees, keep the communication and the reply.
- If your home is in an area declared stressed, what rights that gives you.
The Government may try again, by decree or with a bill, so this may change. In the first consultation, which is free, we review your contract and I tell you how it affects you.
Further reading: how much your rent can go up and what to check in your rental contract in Madrid.