Spain's 2026 housing decrees: what changes for resident and non-resident landlords

What is official today

The Council of Ministers approved two royal decree-laws on 29 September 2026, after the eviction of an 87-year-old woman in Madrid on 23 September. The housing minister called access to housing Spain's main problem and asked Congress for a quick validation.

Decree 1: Real Decreto-ley 26/2026 (in the BOE)

• Evictions. The shield for vulnerable households with no housing alternative is extended to 31 December 2030. It does not apply when the plaintiff is an individual with two homes or fewer, and the authorities compensate the owner up to the rent not received (art. 2).
• Seasonal and room lets. A genuine, provable reason for the temporary let; in general no more than 12 months; more than two consecutive contracts between the same parties turn it into a normal tenancy. The rents of all rooms in a flat cannot exceed the rent of the whole flat (art. 3).
• Extension and rent cap. An extraordinary extension of tenancies and a cap of 2 per cent on annual updates while the measure lasts. Moncloa describes it as a two-year extension for contracts that end before 31 December 2028.
• Tax for resident landlords. New reductions of 50 to 100 per cent of net rental income depending on rent level, tight-market zone and tenant continuity, plus a deduction of up to 10 per cent of rent for lower- and middle-income tenants (art. 6).
• Investors. A ban on speculative purchases by funds until 31 December 2028 (with exceptions, for example for buyers that sign a code of good practice), a higher tax rate on undistributed residential income of SOCIMIs, 10 per cent VAT on tourist apartments, and mandatory registry certification of 'large holder' status (more than ten residential properties).

Decree 2: contract stability (approved, not in the BOE)

The Government's own summary calls it 'urgent measures to reinforce the stability of primary-residence rental contracts' and says it plans automatic renewal of rental contracts, with safeguards for different circumstances. That is all Moncloa has said publicly. The text is not in the BOE.

What is still only press

El País, ABC, El Mundo, elDiario.es and Expansión report that under the second decree a landlord who does not renew would owe the tenant twelve months' rent in compensation. It may well be right, but we cannot yet cite it from an official source. Everything below that depends on it is marked if confirmed.

How a non-resident landlord is taxed

Residents pay personal income tax (IRPF) on net rent, at the progressive scale. Non-residents without a permanent establishment pay the Non-Resident Income Tax (IRNR), which works differently:

Reading the two laws side by side: the decree changes the IRPF, and the IRNR says its taxable base is determined under IRPF rules without the reductions. So, on the literal text, non-residents get none of the new relief. That is our reading of the statutes, not tax advice, and an adviser should confirm it for your case.

What it does to the yield: a worked example

A €250,000 flat let at €1,200 a month: €14,400 a year, a 5.8 per cent gross yield, with €2,400 a year of deductible costs (property tax, community fees, insurance, repairs). Assumptions are ours and deliberately simple: no vacancy, a 30 per cent marginal rate for the resident.

Nothing in the decree raises a non-resident's tax. What changes is everything around it: rent can rise by 2 per cent a year at most while the cap lasts, the tenant is harder to replace, and the resident owner next door can keep much more of the same rent. Every point of tax difference matters more when the top line is frozen. The yield does not collapse; the relative disadvantage of owning from abroad grows.

What it means, by profile

• Non-resident landlord. Model the net yield with your real costs, the 2 per cent cap and a long tenant horizon. Check every contract that ends before 2028, and ask whether the tax residency of the owner (yours) or an ownership structure changes the picture.
• Foreign tenant or digital nomad. More security, but possibly fewer flats if small owners sell or leave the market. Short lets with no real reason are being closed off, which matters if you rely on 'temporary' contracts.
• Buyer. The fund-purchase ban targets legal entities, not individuals. The bigger question for an individual is the tax status you buy under.
• Thinking of living in Spain? Tax residency now carries an added rental-income advantage. Our tax residency guide explains how residency is decided and what it costs.

Ask before you decide

• Does the final text of the second decree apply to my existing contracts, and from when?
• Are the reductions really closed to EU/EEA non-residents under the case law on equal treatment? (Art. 24.6 gives them expense deductions, not reductions.)
• Does the higher imputed-income scale from 2027 (1.1 to 3 per cent of cadastral value) reach non-resident owners of vacant property? The IRNR points to IRPF rules; we have not verified it.
• Which regional rules apply if my flat is in a 'tense market' zone?

What to watch this week

1. The BOE text of the second decree.
2. Congress's vote on both decrees (expected 2 October) and whether they go on as bills, where amendments are possible.
3. Regional measures in tense-market zones.

Spain remains one of the most liveable places in Europe to own a home, and the rules are still being written. The clear-eyed move is not panic or pounce: it is to work out your own net yield under the tax status you actually have, and to choose your structure deliberately. If the status is the variable, it is one you can change.

This article reports what official texts say on 30 September 2026. It is not legal or tax advice. Consult a Spanish lawyer or tax adviser before acting.