What Royal Decree-Law 28/2026 Changes
The short answer: From 15 November 2026, a landlord in Spain who ends a primary-residence lease at the end of its term must, in most cases, pay the tenant at least twelve months’ rent in compensation. Leases will also renew automatically in blocks of five years (seven if the landlord is a company), and the landlord’s notice period rises from four months to six. The rule comes from Royal Decree-Law 28/2026, approved on 6 October 2026 and published in the BOE on 7 October 2026.
I work with international buyers and owners on the Costa del Sol, so I see this mainly from the property side: what it does to a buy-to-let, to the price of a tenanted home, and to an owner who wants their property back. I am not a lawyer, and this is general information, not legal advice.
Key facts at a glance
| Law | Real Decreto-ley 28/2026, de 6 de octubre |
| Published | BOE nº 249, 7 October 2026 (BOE-A-2026-20822) |
| In force | 15 November 2026 |
| Applies to | Primary-residence leases (vivienda habitual), including those already running, for expiry dates after 15 November |
| What it amends | Article 10 of the Urban Leases Act (LAU) |
| Landlord notice | 6 months (was 4) |
| Tenant notice | 2 months (unchanged) |
| Compensation | The higher of 12 months’ rent or 1 month per year the tenant has lived there |
| Status | Must be validated by Congress within 30 days, so it could still change |
What is Royal Decree-Law 28/2026?
It is an emergency decree that rewrites one article of Spain’s Urban Leases Act, the law that governs residential rentals. The article it changes, article 10, decides what happens when a primary-residence lease reaches the end of its minimum term.
It arrived days after Congress rejected the government’s earlier housing decrees, which is why you may see it described as a “second attempt”. It is narrower than those decrees, and it is the part of the package that most directly affects landlords.
What changes for landlords?
- Longer renewals. After the minimum term (five years, or seven if the landlord is a company), the lease renews automatically for another five or seven years, again and again, unless one side gives notice. The old system of annual renewals for up to three extra years disappears.
- Six months’ notice. A landlord must tell the tenant at least six months before the end of the term that the lease will not be renewed.
- Compensation. A landlord who validly ends the lease pays the tenant compensation, due when the keys are handed back.
- Reasons in writing. If the landlord claims one of the exceptions below, the reason has to be stated in detail in the notice itself.
How is the tenant compensation calculated?
The compensation is the higher of two figures: twelve months’ rent, or one month’s rent for every year the tenant has lived in the home. The monthly figure is not the rent in the contract. It is based on the upper value that the State rental price index (sistema estatal de referencia de precios de alquiler) gives for that specific home. Only where the index has no value is the contract rent used.
Example, assuming the index gives €2,500 a month:
| Years the tenant has lived there | 12 months’ rent | 1 month per year | Compensation due |
|---|---|---|---|
| 5 | €30,000 | €12,500 | €30,000 |
| 8 | €30,000 | €20,000 | €30,000 |
| 12 | €30,000 | €30,000 | €30,000 |
| 15 | €30,000 | €37,500 | €37,500 |
So the minimum is twelve months, and it only rises above that after twelve years of tenancy.
When does a landlord not have to pay compensation?
The decree lists five exceptions:
- The owner needs the home. A private-individual owner needs it as a permanent home for themselves or a close family member. If nobody moves in within three months of the handover, the tenant can claim the compensation.
- The tenant does not really live there. For example, absent for more than six of the last twelve months without a justified reason such as health, work, study or caring.
- The tenant has another suitable home in the same municipality that they can move into.
- A new lease is signed between the parties.
- The tenant refuses a qualifying new lease. Offering a new contract at a fresh market rent does not qualify, so check the decree’s conditions on duration and rent before relying on this one.
Does it apply to holiday and seasonal rentals?
Article 10 only concerns primary-residence leases, so genuine tourist lets are outside it. Seasonal contracts are different. They need a real, documented temporary reason, such as work or study away from home. A “seasonal” contract used for someone’s permanent home can be treated as a primary-residence lease, and then the new rules apply.
A companion decree, Royal Decree-Law 29/2026, was approved on the same day and is already in force. It deals with the social function of housing and covers areas such as seasonal lets and extraordinary extensions. I will look at it in a separate article. If you let on the Costa del Sol, whether to tourists or seasonally, take advice on how your contracts are classified.
What does it mean for buyers and investors?
Spain is a market where many international buyers think about letting their property, so this is worth understanding before you buy.
- Buying a tenanted home. The decree provides that a buyer takes over the duty to pay the compensation, so expect to price it in. Ask for the lease, its start date, any renewals and any notices already sent. Notices sent before 7 October 2026 keep their effect and carry no compensation.
- Buy-to-let returns. The cost of recovering the property is now part of the calculation. A twelve-month compensation on the index value changes the exit cost of a long-term let.
- New-build and off-plan. These homes arrive without a tenant, so the issue only appears once you let. It is still worth deciding at purchase whether you plan to let long term, seasonally or not at all. My guide to buying new developments in Spain covers the wider trade-offs, and my 7 things to know before buying on the Costa del Sol is a good starting point if you are new to the market.
- Selling. If you want to sell with vacant possession, plan the timing early. Ending a lease without one of the five exceptions will cost at least a year’s rent.
What should landlords do now?
- List every lease and its expiry date.
- Check the notice period for each one. Leases expiring after the new rules apply need six months’ notice. Ask your lawyer to confirm the transitional rules for leases expiring soon after 15 November, or already in their annual renewal years.
- Before deciding not to renew, calculate the compensation on the State index value for your home, not on the current rent.
- If you plan to move in yourself or house a relative, state it precisely in the notice, and be sure you will actually do it.
Could the law still change?
Yes. A royal decree-law is in force from publication, but Congress must validate it within 30 days. The parties that rejected the earlier decrees still have their say, and a new government could revisit the rules in 2027. The government has re-issued rejected measures before, and its opponents will argue about whether that is legitimate.
My own view is that tenant security and landlord confidence do not have to be opposites. This decree strengthens the first. Whether it weakens the second, and with it the supply of long-term rentals, is something the market will answer over the coming year. Until then, I would plan as if the rules apply from 15 November, and watch the validation vote.
Frequently asked questions
When does Spain’s new rental law come into force?
Royal Decree-Law 28/2026 applies from 15 November 2026, to primary-residence leases already running, but only for expiry dates after that day.
How much compensation does a tenant get in Spain?
The higher of twelve months’ rent or one month per year of tenancy, calculated on the State rental price index for that home.
What notice must a landlord give now?
At least six months, up from four. The tenant’s notice stays at two months.
Does a landlord always have to pay compensation?
No. There are five exceptions, and the reason must be stated in detail in writing in the notice.
Does the buyer of a rented property inherit the obligation?
According to the decree, yes. A buyer of a tenanted home takes over the duty to pay the compensation.
Does it apply to tourist rentals?
Genuine tourist lets fall outside article 10. Seasonal contracts must have a real temporary reason, or they can be treated as primary-residence leases.
Planning to buy, let or sell on the Costa del Sol?
If you are thinking about buying a home on the Costa del Sol and want to understand how rental rules could affect your plans, get in touch. I can tell you what I see in the market and point you to a lawyer for your specific lease. You can explore my area guides or contact me directly.
This article is general information, not legal advice. For a specific lease, speak to a lawyer.
Sources: Real Decreto-ley 28/2026, de 6 de octubre (BOE nº 249, 7 October 2026, BOE-A-2026-20822). Read the decree on the BOE website.
