Spain's new home rental law aimed at protecting tennants was in tatters this week after the Spanish Congress in Madrid rejected a new landmark lawby the Spanish government.
Spain´s Congress rejected the key decree law, reversing earlier measures that allowed a two-year contract extensions and capped rent increases at two percent. While long-term, "stressed zone" rent controls and 2025 registration rules for short-term lets remain in force, the immediate extension rights have expired.
The automatic extension, which allows tenants to stay for 5 to 7 years (depending on if the landlord is a person or company), is still valid, but the extraordinary extension beyond that has been revoked.
There is ongoing legal debate regarding the fate of applications for extensions submitted during the short time the now-repealed decree was in force.
The extraordinary two percent cap on annual rent updates is no longer in effect. Rent updates now revert to the applicable contract terms or the 2023 Housing Law