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Update 1 October 2026: The first part of the new Spanish housing reform has now been published in the BOE and has come into force. This means that numerous regulations, which had only been announced yesterday, have now been finalised. We have fully updated the article and included the confirmed changes
Spain’s first major reform of tenancy law has come into force. Since 1 October, new rules have applied to long-term tenancies, seasonal tenancies, room lettings, tenancy costs and tenants’ rights. From December, the taxation of certain short-term lettings will also change. For property owners on the Costa Blanca, one distinction is particularly important: the new national rules do not replace the regulations of the Comunitat Valenciana governing holiday lettings.
Royal Decree-Law 26/2026 was enacted on 30. It was published in the Spanish Official State Gazette (BOE) in September and came into force on 1 October 2026. The decree still needs to be ratified by the Congreso de los Diputados; however, until it is potentially rejected, it is considered to be in force.
The law brings far-reaching changes for tenants and landlords on the Costa Blanca. Seasonal lettings, which play an important role in many coastal towns, are particularly affected.
Certain existing residential tenancy agreements may be extended by up to two years at the tenant’s request. This applies to agreements whose standard term or subsequent extension period ends before 31 December 2028.
The special extension is granted for one year at a time. One of the conditions is that the tenant has duly paid the current month’s rent and the eight preceding months’ rent.
Exceptions apply, for example, if both parties agree on different terms, or if the owner needs the flat for themselves or for certain relatives, subject to the statutory requirements.
Rent increases will also be temporarily capped. Special upper limits apply for the period specified by law; if the rent is already above a relevant maximum set by the government’s reference system, additional restrictions will apply.
One of the most significant changes concerns seasonal rentals.
Under the new law, a tenancy is only considered a seasonal tenancy if the tenant temporarily moves away from their usual place of residence and there is a genuine and verifiable reason for doing so.
This reason must be expressly stated in the tenancy agreement. In the event of a dispute, the burden of proof lies with the landlord.
If there is no valid reason, the tenancy agreement retroactively loses its status as a seasonal tenancy and is treated in legal terms as a standard residential tenancy.
Consequently, even a contract for, say, six or eleven months is not sufficient to automatically qualify as a seasonal tenancy. It is not the title of the contract that is decisive, but the actual reason for the temporary stay.
The new law sets clear limits for the first time.
A seasonal tenancy must last for more than 31 days and may not, as a general rule, exceed twelve months.
If the documented reason for the temporary stay continues to apply, a longer period may be permitted.
In particular, so-called ‘chain tenancies’ are being tightened up. If a seasonal tenancy lasts longer than twelve months without this being justified by a temporary need for accommodation, or if more than two seasonal tenancies between the same parties for the same flat follow one another immediately, the first tenancy is already deemed to be a standard residential tenancy.
Seasonal tenants are also entitled to a statutory right of termination: after at least one month, they may give notice with ten days’ notice without the landlord being entitled to compensation.
There is a transitional provision for contracts concluded before 1 October 2026.
They will initially continue to run under the existing law until the agreed end of the contract. After that, they will end without the possibility of renewal under the old system.
If a new seasonal contract is subsequently concluded or the contract is renewed, the new regulations will apply.
The letting of individual rooms is also being incorporated more fully into tenancy law.
A distinction is made between whether a room is let as a permanent place of residence or on the basis of a verifiable temporary need for accommodation.
An important rule regarding rent: the total of the rents charged for individual rooms at the same time must not, as a general rule, exceed the permitted rent for the entire flat.
In officially designated tight housing markets, additional price caps may apply.
The law also strengthens tenants’ position with regard to additional costs.
As a general rule, the costs of drawing up, concluding, administering, amending or extending a tenancy agreement must not be passed on to the tenant.
Only voluntary additional services which the tenant expressly requests may be charged for.
Additional safeguards also remain limited. Landlords cannot, for example, simply demand rent-default insurance and make it compulsory for the tenant to bear the costs.
In the event of significant defects in the property, tenants are granted additional options.
If damage affects the habitability, safety or health of the property, the tenant may request the landlord in writing to rectify the damage. If the landlord fails to respond within the statutory time limits or refuses to carry out the repairs without good reason, the tenant may, under certain conditions, take action themselves and claim back or set off the documented costs.
Even in the case of seasonal lettings, the flat must be kept in a habitable condition.
At the end of a tenancy, the condition of the flat should be documented in writing.
If there is no handover report, or if no damage is recorded in it, this strengthens the tenant’s position in the event of any subsequent disputes regarding the condition of the flat.
Tenants are also entitled to a written copy of the tenancy agreement.
The reform also strengthens tenants’ rights when a let property is sold.
The statutory right of pre-emption and repurchase – derecho de adquisición preferente – is being extended. Owners should therefore check, before selling, what rights the tenant has in terms of information and offers.
In this respect, the situation on the Costa Blanca differs significantly from that in other regions of Spain.
The new national tenancy law draws a distinction between seasonal tenancies and tourist lettings. At the same time, the autonomous communities are permitted to lay down their own, stricter regulations for holiday lettings.
In the Valencian Community, the following continues to apply: a ‘vivienda de uso turístico’ (VUT) is, in principle, a self-contained flat let to a tenant for tourist purposes for a maximum of ten consecutive days.
It is not permitted to let rooms to tourists within a VUT.
This means that three distinct areas can be identified on the Costa Blanca:
The period falling between these limits should not automatically be regarded as a legal loophole. The decisive factors are the intended use and the relevant national and regional regulations.
There are also some changes on the tax front.
From 1 December 2026, the existing VAT exemption for furnished flats will no longer apply, subject to the statutory conditions, if the tenancy with the same tenant lasts for 30 nights or fewer.
The law stipulates an IVA rate of ten per cent for these letting services.
One exception applies, amongst other things, to certain tenancies in a flat in which the landlord has his or her usual place of residence.
It is important for property owners on the Costa Blanca to note that the 30-night tax threshold is not a new limit on tourist lettings.
Whether a property may be let as a holiday let continues to be governed by the tourism legislation of the Comunitat Valenciana and, where applicable, additional local regulations.
There is also an important change regarding income tax.
Taxpayers with a taxable income of less than 33,007.20 euros per year may, in principle, claim ten per cent of the rent paid for their main residence against their national IRPF tax liability.
For a taxable income of up to 23,007.20 euros, the maximum amount eligible for the deduction is 11,630 euros. Above this income threshold, it is gradually reduced until it reaches 33,007.20 euros.
Further conditions apply to eligibility.
Tax relief for landlords is also being restructured. Depending on the terms of the tenancy agreement and other legal requirements, various reductions may apply to positive net rental income.
The decree also expands the scope for local authorities to set higher IBI surcharges on certain properties.
Under certain conditions, this applies to flats that have been vacant for a long time, as well as properties used for tourism in designated areas.
However, such surcharges do not automatically apply throughout the Costa Blanca. This requires the fulfilment of legal conditions and the existence of relevant local regulations.
Property owners must therefore check the regulations in their respective local authorities – for example, in Dénia, Xàbia, Calp, Altea, Benidorm, Alicante or Torrevieja.
Special protection for economically vulnerable households without suitable alternative accommodation will be extended until 31 December 2030 or subject to new regulations.
This is not a general moratorium on evictions. Whether proceedings can be suspended depends on the legal requirements and the specific circumstances of the household concerned.
The Act also restricts, until 31 December 2028, certain property purchases by companies and other legal entities whose activities include the acquisition of property.
This applies in particular to certain acquisitions made free of charge and to purchases made at prices significantly below market value. Exceptions apply, amongst other things, to social housing and permanently affordable housing.
For private buyers of a flat or house on the Costa Blanca, this does not mean a general ban on purchasing property.
For businesses operating on the Costa Blanca, the following points have been particularly important since 1 October:
Real Decreto-ley 26/2026 has been in force since 1 October 2026, but still needs to be ratified by the Congreso de los Diputados. Landlords and tenants should therefore keep an eye not only on the new BOE but also on the bill’s progress through parliament.
Official sources: Royal Decree-Law 26/2026 of 29 September 2026, BOE No. 241 of 30 September 2026; Tax Agency; Valencian Regional Government.
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