The Government urgently reinforces the stability of primary residence rentals

The Council of Ministers approved on October 6, 2026, Royal Decree-Law 28/2026, which adopts urgent measures to reinforce the stability of habitual housing lease agreements. The regulation is published in the Official State Gazette (BOE) no. 249, of October 7, 2026, section I, and modifies article 10 of Law 29/1994, of November 24, on Urban Leases. It will enter into force on November 15, 2026.

The reform comes after the Plenary of the Congress of Deputies repealed on September 29, 2026, the urgent royal decree-laws regarding housing, in particular Royal Decree-Law 27/2026, of equivalent content. According to the statement of motives, following the mobilizations of the weekend of October 3 to 4, the extraordinary Council of Ministers on October 5 agreed to dissolve the Congress of Deputies and the Senate and call for elections.

The text is approved alongside Royal Decree-Law 29/2026, of October 6 (reference BOE-A-2026-20823), on the protection of the social function of housing and the expansion of the affordable supply, and is issued under article 149.1.8.ª of the Spanish Constitution. It is proposed by the Minister of Social Rights, Consumption and 2030 Agenda, the Minister of the Presidency, Justice and Relations with the Cortes, and the Minister of Housing and Urban Agenda, and was signed by Felipe VI on October 6, 2026, countersigned by the President of the Government, Pedro Sánchez Pérez-Castejón.

Contract continuity becomes the general rule

Upon the expiration date of the contract or any of its extensions, once a minimum duration of five years has elapsed—seven if the lessor is a legal entity—the contract shall be tacitly and obligatorily extended for successive periods of the same duration, unless one of the parties notifies their intention not to extend it.

The lessor’s notice period is increased from four to six months, while the lessee’s remains at two months. The termination of the contract ceases to be automatic and now requires an express decision by the owner, adopted with sufficient advance notice.

Mandatory compensation when the owner does not renew

The lessor who validly communicates their intention not to extend the contract must compensate the lessee with the higher of these two amounts:

• Twelve monthly payments calculated according to the upper value of the individualized range corresponding to the dwelling in the state reference system for rental prices.
• One monthly payment calculated with that same value for each year the lessee has resided in the dwelling, prorated by months and days.

When an individualized value cannot be obtained, the amounts are calculated based on the monthly rent in effect on the date of the communication. The compensation is paid at the time of the delivery of the dwelling and is not lost if the property is alienated: it corresponds to the subrogated acquirer.

Causes that exclude compensation

Compensation is not applicable in cases that must be expressly, detailedly, and in writing stated in the notice of termination:

• The need of the landlord (natural person) to allocate the dwelling as a permanent residence for themselves or for relatives up to the second degree of consanguinity or adoption, or for the spouse in cases of separation, divorce, or annulment.
• Lack of effective residence of the tenant for more than six months in the twelve months prior to the notification, unless there is a justified cause.
• Availability of another suitable dwelling in the same municipality, under full ownership or by a real right of use or enjoyment.
• Signing of a new habitual housing lease agreement between the parties.
• Rejection of a reliable offer for a new contract for the same dwelling, which must guarantee a minimum stay of five years, or seven if the landlord is a legal entity.

Extraordinary extensions and transitional regime

The two extraordinary extensions already provided for in the law are maintained: that of up to one year for situations of social and economic vulnerability accredited by social services, which is mandatory for large holders, and that of stressed residential market areas, for annual terms up to a maximum of three years and with preferential character. Both are not cumulative.

The transitional regime applies the new wording to expirations occurring after the entry into force. Notices of non-renewal made before the publication retain their effectiveness and do not generate compensation, and in contracts expiring in the following six months, the landlord may continue to give notice four months in advance.

The regulation directly affects millions of tenant households: contracts signed under Royal Decree-Law 7/2019 reach the end of their minimum term from 2024 and, for the most part, exhaust their tacit extension between 2027 and 2030. The new regime makes the continuity of the rental the rule and transfers the cost of deciding not to renew to the owner.

Source: Official State Gazette, no. 249, October 7, 2026, Sec. I. General Provisions, page 131840 (official reference: BOE-A-2026-20822).