Spain's rental contracts get two-year extension

A rental contract in Spain can run for two extra years under a new housing decree. Housing and Urban Agenda Minister Isabel Rodríguez says the decree guarantees the extension and also sets out measures on evictions and holiday lets. She defended the plan in an Antena 3 interview on Wednesday, 7 October 2026.

Evictions and rental checks

Evictions of vulnerable people had been halted until January, when parliament rejected an extension, Rodríguez said. Under the new decree, a court order would trigger a response from public authorities in cases of vulnerability, alongside safeguards for property owners.

Rodríguez rejected claims that 400,000 homes have left Spain’s rental market since Pedro Sánchez took office. The decree also targets fraud in short-term rentals. She called for closer checks on overcrowding and other improper uses of homes.

Holiday lets and public homes

The decree introduces value added tax for holiday lets. Rodríguez says this would put them on the same tax footing as hotels and help curb speculation.

She said the government is preparing 40,000 homes from Sareb, a state-owned property company, to make them available for use. She also wants protected housing to keep that status permanently, rather than later being sold at higher prices.

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Source: Europa Press / Mallorca.com