Summary of Royal Decree-law 26/2026, of 29 September (BOE no. 241, of 30 September 2026), in force since 1 October 2026.
Quick answer
- What is it? Royal Decree-law 26/2026, of 29 September (published in the BOE on 30 September 2026), in force since 1 October 2026.
- What changes for leases? Seasonal leases require a real and provable cause and, as a general rule, last a maximum of twelve months; in room rentals, the combined rents may not exceed the rent for the whole home.
- What cannot be passed on to the tenant? In new leases, property tax (IBI) and other taxes, agency fees and rent-default insurance.
- What else does it include? An extraordinary extension of up to two years, a 2% cap on rent reviews until 31 December 2027, and tax measures.
- Is it final? No: Congress must validate or repeal it within thirty days.
Before you read on. This summary concerns a royal decree-law that has just been published and is pending validation by Congress. Its content may change or lapse, and several measures depend on the autonomous communities, on municipal ordinances or on implementing regulations. Each case calls for individual analysis. This article is informational and does not replace legal advice.
Contents
- Investors: home purchases and assignment of mortgage loans
- Evictions and vulnerability
- Seasonal and room rentals
- Rent, expenses and guarantees
- Large holders and pre-emption rights in block sales
- Extraordinary extension and cap on rent reviews
- Tax measures
- Application of the decree and validation
Investors: home purchases and assignment of mortgage loans
Until 31 December 2028, entities whose corporate purpose includes acquiring real estate are restricted from buying homes below 70% of their appraisal value, unless the homes are used for affordable or social rental for five years or other social purposes, or the buyer adheres to a Code of Good Practice. Deeds executed before 1 October and acquisitions in judicial or mortgage enforcement proceedings are excluded. In addition, where mortgage loans are assigned, the borrower retains all defences against the assignee, with enhanced protection where the loan is secured over the borrower’s primary residence.
Practical question · Can a fund buy a home today at 60% of its appraisal value?
Answer. As a general rule no, unless it commits to one of the exempted uses or proves adherence to a Code of Good Practice.
Evictions and vulnerability
Where a vulnerable tenant has no alternative housing, the Administration must offer an alternative or pay the debt within two months. Otherwise, it automatically steps in as debtor and the lease continues (new art. 22.6 of the Civil Procedure Act). If the claimant is an entity that acquired the properties or loans at a price clearly below their value, proceedings are stayed until 31 December 2030.
Practical question · What happens if the Administration does not act within two months?
Answer. There is no eviction: the Administration becomes liable for the rent and the lease continues while the vulnerability persists.
Seasonal and room rentals
Temporary leases become a type of housing lease. They require a real and provable cause, which the landlord must prove, and a general maximum term of twelve months. Without a cause, or where more than two leases are chained, they become primary-residence leases. In room rentals, the combined rents may not exceed the rent for the whole home. Seasonal leases signed before 1 October keep their regime until expiry, with no extension.
Practical question · What happens if a seasonal lease does not state its cause?
Answer. It is governed as a primary-residence lease from signature, with the statutory minimum term of five or seven years.
Rent, expenses and guarantees
In new leases, property tax (IBI) and other taxes, agency fees and rent-default insurance cannot be passed on to the tenant. In buildings without horizontal property, no community charges may be charged. Rent reviews only apply if agreed, with the IRAV index as the cap, and in stressed areas the initial rent remains capped. The additional guarantee is limited to two months’ rent (one in temporary leases). These rules are not retroactive and do not affect leases signed before 1 October.
Practical question · Can the tenant be required to take out rent-default insurance?
Answer. No. The decree expressly prohibits it, although an additional guarantee may be agreed within the legal limits.
Large holders and pre-emption rights in block sales
A large holder is anyone owning more than ten residential properties or more than 1,500 m², and each home in a building without horizontal division counts separately. The tenant’s rights of first refusal and redemption cannot be waived and remain even where the home is sold together with other assets, with notice of the price allocated to each home.
Practical question · Does selling an entire building exclude the tenants’ pre-emption rights?
Answer. No. Each tenant may exercise the right over their home, at the price proportionally allocated to it.
Extraordinary extension and cap on rent reviews
A tenant who is up to date with payments may request an extraordinary extension of up to two years where the mandatory extension period of the lease ends before 31 December 2028, or in the other cases provided for in the decree. Until 31 December 2027, no annual review applies if the rent exceeds the reference index and, absent agreement, the increase may not exceed 2%. Royal Decree-law 27/2026, published the following day, provides that this extension does not apply where the new extension under article 10.1 LAU applies.
Practical question · Can the landlord refuse the extraordinary extension in order to sell the home?
Answer. No. An intention to sell is not a ground for refusal. It can only be avoided by agreement, a new lease or a proven need for the home.
Tax measures
Personal income tax: new rental reductions for leases signed from 1 December 2026, linked to rent moderation, and a 10% credit for tenants with a tax base below EUR 33,007.20. VAT: furnished lets of up to 30 nights are taxed at 10%. IBI: municipal surcharges on vacant and tourist homes. SOCIMIs: a 25% special levy on undistributed profits from residential leasing.
Practical question · From when do the new personal income tax rental reductions apply?
Answer. To leases signed after 1 December 2026. Earlier leases keep their regime.
Application of the decree and validation
Most measures apply directly. Others depend on the autonomous communities (stressed areas, large-holder threshold, temporary and room rentals in their territory), on municipal ordinances (IBI surcharges) or on implementing regulations. Congress must validate or repeal the decree within thirty days. If it is not validated, it will lapse, and the effects produced while it was in force will raise questions that the courts are likely to resolve.
Practical question · What should be done while validation is pending?
Answer. Apply the rules in force and keep dated evidence of leases, notices and transactions.
Barcelona, October 2026
For information purposes only; not legal advice. For a full analysis, see our newsletter or contact SANDIN ABOGADOS.
How does Royal Decree-law 26/2026 affect your leases and transactions?
At Sandin Abogados we analyse the impact of the new rules on your rental portfolio, your purchase or sale transactions and your tax position, and we help you decide how to act while validation is pending.
Author: Susana Sandín Llorente, lawyer and Executive MBA, Sandin Abogados.
Published: 1 October 2026 · Last updated: 1 October 2026
Disclaimer: this article is informational and does not constitute legal advice. The decree is pending validation and may change. Consult a professional before making decisions.
Sources: Royal Decree-law 26/2026, of 29 September (BOE no. 241, of 30 September 2026, BOE-A-2026-20266) · Act 29/1994 on Urban Rentals.
