On 12 November 2026, Spain’s Congress upheld Royal Decree-Law 29/2026 and repealed a separate rental decree, 28/2026. The approved decree gives some long-term tenants a right to request an extension and changes how IVA applies to many short furnished stays. Congress’s decision in the BOE · Separate repeal
Some long-term tenants can request up to two extra years
Tenants on qualifying main-home leases can request an extension in one-year increments, up to two additional years. The lease must already have been in force when the decree took effect. The tenant must be up to date with rent and have paid monthly for the previous eight months. The stage of the lease matters, and exceptions include certain cases where the landlord has a genuine, evidenced need to occupy the home and has followed the applicable notice rules. BOE, final provision five
If you’re selling with a tenant in place, ask your solicitor to check the tenancy agreement, statutory extensions and any notices already served before you promise a buyer vacant possession. The date printed on the agreement is only one part of that check.
Annual rent reviews are restricted through 2027
For covered annual rent reviews through 31 December 2027, the decree allows no increase where the existing rent exceeds the applicable reference-index maximum. In other covered cases, the increase is capped at 2% in the absence of a new agreement between landlord and tenant. BOE, final provision six
Many short furnished stays will attract 10% IVA
From 1 December 2026, many furnished lets of 30 nights or fewer to the same guest will be subject to 10% IVA, even where the owner provides no hotel-style services. The decree includes an exception for qualifying short stays in the landlord’s own main home. If you take holiday bookings, ask your tax adviser how to handle bookings or deposits already taken and how to quote prices for future stays. BOE, article 7
Eviction protections apply in certain cases
The decree provides for the suspension of certain eviction proceedings involving vulnerable occupants without alternative housing. The rules depend on who brings the claim and the circumstances of the case. BOE, article 2
If you’re deciding whether to let or sell on the Costa del Sol, tell us whether the property is rented and when the tenancy is due to end. We can discuss how to market it and what to confirm with your solicitor or tax adviser before setting a price or agreeing dates. Speak to Costa Space.
Images are illustrative.