Spain eviction pauses: vulture funds get no payout

In Spain, courts can pause an eviction when a vulnerable person has nowhere else to live: some claimants can recover lost rent, but firms the decree calls “vulture funds” cannot. Europa Press reported the rules from Madrid, Spain, on 30 September 2026.

When a court pauses an eviction

The rule covers cases brought by an individual or an organisation providing affordable or social rental homes. The person facing eviction must be vulnerable, have no other home and have received no decent, suitable alternative from the relevant authority.

The court then asks housing and social services authorities to identify and offer any accommodation available. If they do not reply, or say none is available, proceedings stop until a suitable alternative is secured.

The court reviews the pause every 12 months. It ends if the person is no longer vulnerable, a suitable home becomes available, they reject one without good reason, or three years have passed since the pause was ordered.

Who can recover costs

The housing authority covers compensation set by the court for eligible claimants. Payments can cover no more than lost contractual rent and unpaid utility bills. They do not cover hypothetical profits or emotional harm. If the authority pays late after the court’s decision, interest applies under the relevant law. The obligation to keep up with rent remains.

The decree treats “vulture funds” differently. It uses the term for firms that buy properties or portfolios of unpaid mortgage loans well below their assessed value. Where the person facing eviction is vulnerable and has no other home, proceedings involving such firms can remain paused until 31 December 2030. The compensation available to other eligible claimants does not apply to them.

Topics: Housing · Social affairs · Politics · Economy

Source: Europa Press / Mallorca.com