Spain's second housing decree enters force, overhauling rental rules

Spain's new housing decree, Real Decreto-ley 27/2026, now in the BOE, automatically extends leases in five-year blocks and obliges landlords who don't renew to pay at least 12 months' rent as compensation. There are exceptions, but all must be stated in writing in the notice.

Leases no longer end just because. The **Real Decreto-ley 27/2026** is in the **BOE** and changes the rules for housing contracts: automatic extensions and compensation to the tenant if the landlord doesn't renew. It takes effect tomorrow, the same day the **Congress** votes on whether to ratify it.

## Automatic renewal: five more years, and so on

After **5 years** of contract, if no one gives notice, it is mandatorily extended for another five. With a corporate landlord, the terms are **7**. And so on.

To avoid this, notice must be given in advance: the landlord, with **6 months**; the tenant, with two.

## If the landlord doesn't renew, they pay

The minimum is **12 monthly payments** of rent for a similar home, calculated if possible using the state reference index. Never less than one monthly payment per year lived in the home. It is paid upon handing over the property.

## Selling does not erase the compensation

Some media have reported that selling the flat eliminates it. The **BOE** says the opposite: the obligation passes to the buyer who assumes the contract. If they don't renew, they pay.

## The exceptions that allow non-payment

An individual landlord can be exempt if they need the home for themselves or relatives up to the second degree. If they don't occupy it within **3 months**, they pay. There is also no compensation if the tenant has not lived there for more than **6 of the last 12 months** without justified cause, or if they have another suitable home in the same municipality. It is also avoided with a new contract, if the tenant rejects a formal offer of at least **5 years** (7 for legal entities) with limited rent, or if the landlord proves vulnerability. All in writing in the notice.

Existing contracts are governed by this at future expirations. Prior notice from the landlord is valid and does not generate compensation. If the contract has less than six months left, they can give notice with four.

It is a newly published rule: for a specific case, consult the official text or a lawyer.