Spain rental changes 2026: tenancy renewals and holiday let VAT
Spain’s Royal Decree-laws 28/2026 and 29/2026, both dated 6 October, introduce rental changes in Spain in 2026. Both were published in Spain’s Official State Gazette (BOE) on 7 October 2026. This guide explains two of these changes and what they mean for landlords and tenants in Málaga and Nerja:
- Royal Decree-law 28/2026: reforms main-home tenancy extensions, with commencement scheduled for 15 November 2026.
- Article 7 of Royal Decree-law 29/2026: provides for 10% VAT on certain furnished rentals of up to 30 nights, scheduled to apply from 1 December 2026.
As at 8 October 2026, both Royal Decree-laws await parliamentary ratification. The measures have different start dates, and their future application depends on whether the legislation remains in force.
In this guide: Tenancy extensions · Holiday let VAT · Ratification · Discuss your case.
Spain’s rental changes in 2026: dates and current status
| Measure | Scheduled date | Status on 8 October |
|---|---|---|
| New main-home tenancy extensions | 15 November 2026 | Royal Decree-law 28/2026 published; awaiting ratification. |
| 10% VAT on certain rentals of up to 30 nights | 1 December 2026 | Royal Decree-law 29/2026 generally effective from 8 October, but this tax measure is deferred and ratification remains pending. |
This article addresses these two changes, rather than every measure included in the housing legislation.
Main-home tenancies under Spain’s 2026 rental changes
Royal Decree-law 28/2026 of 6 October changes Article 10 of Spain’s Urban Leases Act. Once a tenancy has lasted at least five years, or seven where the landlord is a legal entity, failure to give valid notice will trigger successive extensions of five or seven years respectively.
An original one-year contract would therefore not simply renew for another year under this rule. The reform expressly sets these new five or seven-year extension periods.
The proposed notice requirements are:
- Landlord: at least six months before expiry.
- Tenant: at least two months before expiry.
Must landlords compensate tenants for non-renewal?
The reform generally provides for compensation where the landlord chooses not to extend the tenancy. Compensation is not required in every case. Exceptions cover specified personal or family housing needs, certain situations where the tenant no longer lives at the property, access to another suitable home, and qualifying agreements or offers of a new contract.
As a general rule, compensation is the higher of twelve monthly amounts or one monthly amount for each year of residence. The calculation uses the upper value of the property-specific range in Spain’s State Housing Rental Price Reference System (SERPAVI). If no property-specific value exists, the monthly rent in force when notice is given is used. Payment is due when the property is handed back, subject to the applicable special rules.
Each exception has legal conditions. Any exemption relied upon must be explained and communicated as required; a generic non-renewal notice does not automatically remove the compensation obligation.
Existing contracts: transitional rules matter
These rental changes in Spain in 2026 can also affect existing tenancies. Before serving notice, establish the expiry date and the contract’s current stage:
- Valid non-renewal notices given before 7 October 2026 remain effective without triggering the new compensation.
- Where less than six months remain until expiry when the reform takes effect, a transitional four-month landlord notice period is available in the specified circumstances.
- Tenancies already within an extension period under the former Article 10.1 of the Urban Leases Act continue until the end of that period, in accordance with the transitional provisions.
For help with duration and notice periods, see our advice on tenancy agreements. If you plan to sell, read our guide to selling a rented property and the tenant’s rights.
Is your tenancy nearing expiry? Request a review of your lease and notice.
Holiday let VAT and Spain’s rental changes in 2026
Article 7 of Royal Decree-law 29/2026 of 6 October provides for 10% VAT from 1 December 2026 on certain lettings of furnished apartments or homes for up to 30 nights to the same tenant, even without hotel-style services.
This new route excludes accommodation in the landlord’s own main residence. That exclusion does not remove VAT arising under the rules for accommodation supplied with hotel-style services.
The new rule does not apply before 1 December. Under the existing framework, a holiday letting without hotel-style services may be VAT-exempt; cleaning only before arrival and after departure is not, by itself, a hotel-style service. Equally, booking 31 nights will not guarantee exemption: the transaction must be assessed on its facts.
Bookings for December: which payment date matters?
The booking date alone does not settle the VAT treatment. Nor should the price automatically be split between nights before and after 1 December. For lettings, the date the price becomes contractually due matters, while an actual advance payment can trigger VAT accrual for the amount received.
These examples apply the general rules in Article 75 and Article 90 of the VAT Act; no specific administrative interpretation of this reform has been located. They assume accommodation without hotel-style services that falls within the new rule, and that the legislation remains effective:
| Situation | Indicative treatment |
|---|---|
| Booking in October, no advance payment, price due and paid in December. | 10% VAT. |
| Price due on 20 November, collected late on 5 December. | Exempt: late collection alone does not move the tax point. |
| Actual advance payment on 20 November; balance due on 5 December. | In principle, exempt advance and balance subject to 10%, subject to reviewing the contract and applicable administrative guidance. |
A booking without payment, a pro forma invoice or a genuine refundable security deposit does not by itself constitute an advance payment of rent.
Can VAT be added to an existing confirmed price?
Spain’s rental changes in 2026 do not automatically allow a landlord to increase an agreed total price. Review the contract and the information given to the consumer. If the agreed total is €1,100 and must include VAT at 10%, the net amount is €1,000 and VAT is €100. A further €110 is not automatically added.
VAT, registration and income tax require separate checks. See our guides to annual reporting of the Rental Registration Number and personal income taxation of holiday rentals.
For help with rental changes in Spain in 2026, explore our legal and tax advice for holiday rentals. Before changing a booking, request a review of the agreed price and applicable VAT.
What if the decree-laws are not ratified?
Both await parliamentary ratification as at 8 October. With Parliament dissolved, the Permanent Deputation of the Congress of Deputies performs the relevant function under Article 78.2 and Article 86.2 of the Spanish Constitution. It must decide within thirty days following promulgation; ratification does not require a subsequent vote in the Senate.
If Royal Decree-law 28/2026 is not ratified and lapses before 15 November, the renewal reform will not take effect. If Royal Decree-law 29/2026 lapses before 1 December, the new VAT rule will not apply under that legislation. Its general commencement in October does not bring the deferred tax measure forward.
Frequently asked questions about Spain’s 2026 rental changes
Is holiday let VAT different in Málaga or Nerja?
No. These national rules do not set a different municipal VAT rate. Andalusian tourism requirements, planning rules and owners’ association restrictions must be considered separately.
Will every existing tenancy renew for five years?
No. Duration, the landlord’s legal status, the current extension period, notices and transitional rules all need checking.
Should I charge the new 10% VAT now?
Not under this new rule. Its scheduled application date is 1 December and the legislation must remain effective. Accommodation with hotel-style services already has its own VAT treatment.
Review your tenancy or bookings before changing prices
Pérez Parras Economistas y Abogados advises landlords and tenants on residential leases, notices, bookings and Spanish rental taxation in Málaga and Nerja. We can help you assess how rental changes in Spain in 2026 affect your case.
Tell us whether you are the landlord or tenant, the start date of the tenancy or booking and its expected expiry date. Also mention any notice already served or advance payment received.
You can also email info@perezparras.com or visit our contact page for our Málaga and Nerja offices.
Official legislation in Spanish: Law 29/1994 of 24 November, Urban Leases Act, Article 10; Royal Decree-laws 28/2026 and 29/2026 of 6 October, linked above; Law 37/1992 of 28 December, VAT Act, Articles 75, 90 and 91; Spanish Constitution of 27 December 1978, Articles 78 and 86; Royal Legislative Decree 1/2007 of 16 November, Article 60.
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