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Spain has once again amended its tenancy law. Since 8 October, stricter regulations have been in force for seasonal and room rentals, along with new limits on rent increases and additional rights regarding repairs. Costs and security deposits are also now regulated differently. Further changes regarding protection against eviction are due to come into force from 15 November. Here’s what this means for existing and new tenancy agreements on the Costa Blanca.
A tenancy lasting eleven months does not automatically constitute a seasonal tenancy. Property tax may no longer be passed on to tenants without further ado, and landlords must also comply with new regulations regarding estate agent’s fees, security deposits and contract extensions.
The basis for this is Royal Decree-Law 29/2026, which was published in the Spanish Official State Gazette (BOE) on 7 October and has been in force since 8 October. A second decree, Real Decreto-ley 28/2026, is due to introduce additional rules on the termination and extension of residential tenancy agreements on 15 November.
Both decrees still need to be approved by parliament. The first is already in force, but the second is not yet.
In principle, the changes also apply in the Comunitat Valenciana. However, the decisive factor is whether a property is let as a permanent residence, on a temporary basis, by the room, or for tourist purposes.
On the Costa Blanca, many flats are let out for several months at a time. Some owners use their property themselves in the summer and let it out during the winter. Others let their properties to people who are working or studying in Spain on a temporary basis.
Such seasonal tenancy agreements will remain permitted. However, the reform sets out more clearly than before when a tenancy is in fact temporary.
A seasonal tenancy agreement (alquiler de temporada) must state a specific reason for the temporary use of the property. This means that the tenant only requires the flat for a specific period and not as their permanent place of residence.
This could, for example, be a temporary work assignment, a course of study or another verifiable temporary need for accommodation.
Simply referring to it as a seasonal tenancy or specifying a term of eleven months is not sufficient.
The temporary nature of the tenancy must be expressly stated in the tenancy agreement. In the event of a dispute, the burden of proof lies with the landlord.
As a general rule, the tenancy must last for more than 31 days and may not normally exceed twelve months. If the actual reason for the temporary use continues for longer, the law provides for exceptions.
If there is no valid reason for the fixed-term nature of the tenancy, the tenancy may be regarded as a standard residential tenancy from the outset.
For the landlord, this makes a significant difference: in the case of permanent accommodation, tenants are generally entitled to a statutory minimum lease term of five years; where the landlord is a legal entity, the term is seven years.
Restrictions are also being placed on the repeated use of fixed-term contracts.
If more than two seasonal tenancy agreements for the same flat are concluded in quick succession between the same parties, the new rules stipulate that, as a general rule, the first agreement is already deemed to be a standard residential tenancy agreement.
An example: A tenant has been living in a flat in Dénia for two years and signs a new seasonal tenancy agreement every eleven months. In reality, he lives and works there on a permanent basis. Such an arrangement cannot be excluded from normal tenant protection simply by continually renewing fixed-term tenancies.
The key factor here is the date on which the contract was concluded.
Seasonal tenancy agreements entered into before 8 October 2026 will, in principle, remain subject to the previous legislation until their agreed expiry date. However, they cannot be renewed in accordance with the old seasonal tenancy rules. Should a new agreement be entered into, the new regulations must be observed.
Fictitious fixed-term contracts that were already unlawful are not rendered lawful retrospectively by this transitional provision.
New rules also apply to the letting of individual rooms.
This is intended to prevent landlords from circumventing the statutory rent regulations by dividing properties into individual rooms.
An example: If the total rent applicable to a flat is 1,200 euros, the landlord may not offer three rooms at 500 euros each if the total rent for the rooms thereby exceeds the permitted limit.
Additional price caps apply in housing markets officially designated as ‘tight’. However, such a designation must be made formally. It does not automatically apply in every local authority area with high house prices.
Anyone who rents a room as their permanent home will also benefit from enhanced protection under tenancy law as a result of the reform.
Another important change concerns the annual adjustment of existing tenancy agreements.
Special restrictions will apply until 31 December 2027.
If the rent is already above the relevant upper limit set by the government’s reference price system, the special rule does not allow for any further increase.
In the other cases covered, landlords and tenants may agree on a new rent adjustment.
In the absence of such an agreement, the increase must not, as a general rule, exceed two per cent.
In addition, the other statutory requirements for a rent adjustment must be met.
For example: if the monthly rent is 1,000 euros, a two per cent increase amounts to an additional 20 euros.
The new rent would therefore be 1,020 euros, provided that this adjustment is legally permissible under the terms of the specific tenancy agreement.
It is important to note the distinction: the restriction applies to the annual adjustment of existing tenancy agreements. Different conditions apply when setting the rent for a new tenancy agreement.
Furthermore, an annual increase is not automatically permitted.
In the absence of a valid contractual adjustment clause, the landlord cannot increase the rent solely on the grounds of a rise in the cost of living.
Certain tenants may request an exceptional extension of their existing residential tenancy agreement for up to two years.
This applies in particular to contracts where the statutory minimum term expires before the end of 2028, as well as to certain other expiring extension periods.
One of the conditions is that the tenant has paid their rent and has not been in arrears with their payments during the previous eight months.
The lease is extended in annual increments at the tenant’s request. The existing terms of the lease generally remain unchanged.
The landlord must accept the application provided the statutory conditions are met. Exceptions apply, for example, where there is proven personal need or where both parties agree on a new tenancy agreement. A mutually agreed new tenancy agreement with a rent reduced by at least five per cent may also preclude the special extension.
For tenants, this means that an expiring tenancy agreement does not necessarily have to result in a move.
For landlords, this means that before terminating the tenancy agreement, they must check whether the tenant is entitled to request a further extension.
The reform also changes the costs that landlords are permitted to charge in addition to the rent.
The Spanish property tax, Impuesto sobre Bienes Inmuebles (IBI), is one of the costs associated with owning a property.
Under the new rules, property-related taxes may, in principle, no longer be passed on to tenants unless they are themselves legally obliged to pay them.
In the case of existing contracts, it also depends on the transitional provisions and the agreement in place to date.
Under certain conditions, communal charges may continue to be borne by the tenant. This requires a written agreement setting out the annual cost allocation.
In the case of buildings without a owners’ association in the legal sense, however, no communal costs may be passed on to the tenant.
Electricity, water and other consumption costs measured individually by meters shall, as a general rule, continue to be borne by the tenant.
Even before now, landlords were required to cover the costs of estate agency services and the conclusion of the tenancy agreement under standard residential tenancy agreements.
The reform now makes it explicitly clear that, as a general rule, fees for contract administration, amendments or renewals may not be passed on to the tenant either.
It makes no difference whether the charge is described as a broker’s commission, a processing fee or an administrative charge.
The tenant may only be charged for optional additional services if they have expressly requested them in writing and have been informed of the costs in advance.
For a standard residential tenancy, the statutory deposit is generally equivalent to one month’s rent. In addition, landlords may require security deposits of up to two further months’ rent for tenancies of the durations specified by law.
In the case of seasonal tenancies, the reform limits the additional security deposit to, in principle, one month’s rent.
Important: The statutory deposit and additional security are not the same thing. The statutory deposit applicable to a specific contract depends on the relevant classification and the deposit regulations in force.
Another new provision is that landlords are not permitted to require their tenants to take out rent default insurance at their own expense.
On the Costa Blanca, landlords are generally required to deposit the statutory security deposit with the Generalitat Valenciana within one month of the contract being signed.
The Modelo 806 and Modelo 816 procedures are available for this purpose.
The landlord is obliged to hold the deposit. This does not mean that the tenant has to pay their deposit directly to the Generalitat.
A leaking roof, damp damage or a faulty plumbing system can have a significant impact on a flat.
In principle, the landlord is responsible for keeping the flat in a habitable condition. The reform sets out in detail what options tenants have if necessary repairs are not carried out.
The tenant may request any necessary repairs in writing and provide a reasonable estimate of the costs.
As a general rule, the landlord must respond within 15 calendar days. They may accept the proposal, offer an alternative repair solution or organise the work themselves.
If no response is received or if necessary work is unreasonably refused, the tenant may, subject to the statutory conditions, arrange for the repairs to be carried out themselves. Documented and reasonable costs may then be set off against future rent payments.
Stricter requirements apply here.
As a general rule, the landlord must respond to a report of a defect within five working days.
Furthermore, under the new rules, it also covers minor repairs resulting from normal wear and tear.
The following applies to both types of tenancy agreement: Tenants should report and document any damage in writing. Unilaterally reducing the rent or arranging for repairs without complying with the legal requirements may have legal consequences.
At the end of the tenancy, the landlord and tenant must jointly document the condition of the flat in writing.
To this end, the new legislation provides for a final document signed by both parties.
If no such document is provided, or if it does not mention any damage, it is generally assumed that the flat was returned in good condition. However, this assumption may be rebutted by other evidence.
A handover report including photographs, meter readings and confirmation that the keys have been returned is therefore in both parties’ interests.
Further amendments are set out in Royal Decree-Law 28/2026. It has already been published, but is not due to come into force until 15 November 2026.
This applies in particular to long-term residential tenancy agreements once the statutory minimum tenancy period has expired.
Under the applicable rules, landlords must, as a general rule, give notice of non-renewal at least six months before the end of the tenancy agreement. For tenants, the notice period remains, as a general rule, two months.
If notice is not given in good time, the contract shall, in principle, be extended for a further five or seven years upon expiry of the statutory minimum term.
Transitional rules apply to certain contracts that are already in force.
In future, even a notice of non-renewal given by the landlord in good time may entitle the tenant to compensation.
The amount is determined in accordance with statutory calculation guidelines, including the length of tenancy to date and the relevant reference rent.
There are, however, exceptions, such as in certain cases where the landlord requires the property for their own use or where a new tenancy agreement is offered in accordance with the law.
Non-renewals declared effective prior to the publication of the decree remain, in principle, valid and do not give rise to a claim for compensation solely on the basis of the new provisions.
It is therefore particularly important for landlords to know when the tenancy agreement ends, whether notice of termination has already been given, and which transitional provision applies.
The reform also includes new tax incentives for the long-term letting of residential property.
Anyone who reduces the rent under certain conditions when entering into a new tenancy agreement may, for example, benefit from greater tax relief. Tax relief is also available for certain tenancies with younger tenants or for socially-controlled tenancies.
Conversely, tax benefits may be lower where new tenancy rents are higher.
However, these benefits are subject to various conditions. They do not automatically apply to every private landlord.
For property owners on the Costa Blanca in particular, one key difference is crucial: anyone who is tax resident in Spain may be subject to different regulations than someone who lets out their property but remains tax resident in Germany, the Netherlands or another country.
It is therefore not possible to draw any general recommendation from the new tax benefits to reduce existing rents or renew tenancy agreements early.
Seasonal lettings and holiday lettings are legally distinct forms of use.
A flat rented for several months for the purposes of a temporary business stay is to be classified differently from a holiday let offered for a tourist stay.
In addition, tourist accommodation is subject to the relevant regulations of the Comunitat Valenciana, as well as any applicable local authority rules and registration requirements.
The new tenancy regulations do not replace these rules. Landlords must therefore clarify what type of tenancy they are actually offering and what licences are required.
For landlords, the most important question to start with is which type of tenancy agreement actually applies to their letting. Particularly in the case of seasonal lets, the temporary housing requirement, the term of the tenancy and any potential renewal agreements must be clearly documented. Provisions relating to estate agent’s fees, council tax, the security deposit and repairs should also be checked.
For tenants, the most important factors are the date the tenancy agreement was signed, the agreed tenancy period and the next rent review. Anyone who has signed a seasonal tenancy agreement, even though they use the flat as their main residence on a permanent basis, should clarify their legal situation. Where tenancy agreements are due to expire, it is also worth checking whether there are any additional rights to extend the tenancy.
The key point remains that not every new regulation applies in the same way to existing contracts. The statutory transitional provisions can make a significant difference.
7 October 2026: Publication of the two new legislative decrees in the BOE.
8 October 2026: Entry into force of Royal Decree-Law 29/2026.
15 November 2026: Planned date of entry into force of the additional rules on termination and renewal.
31 December 2027: End of the special restriction on annual rent adjustments currently in place.
31 December 2028: Reference date for certain exceptional contract extensions.
At the time of publication, parliamentary approval of the decree-laws is still pending.
Royal Decree-Law 29/2026 – New rules on tenancy and housing:
https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20823
Royal Decree-Law 28/2026 – Contract renewal and termination:
https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20822
Urban Tenancy Act (LAU):
https://www.boe.es/buscar/act.php?id=BOE-A-1994-26003
Valencian Regional Government – Paying a tenancy deposit:
https://sede.gva.es/es/detall-tramit?id_proc=3023
Spanish Government – Explanatory notes on housing reform:
https://www.lamoncloa.gob.es/serviciosdeprensa/notasprensa/vivienda-agenda-urbana/Paginas/2026/decreto-vivienda-medidas.aspx
As at 8 October 2026. This article explains the general legal provisions. In the case of individual tenancy agreements, the applicable transitional provisions must be observed.
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