Government publishes two royal decrees-laws to shield the housing market before elections

Publication of urgent measures in the BOE

The Government has published in the Official State Gazette (BOE) of October 7, 2026, two new royal decrees-laws (28/2026 and 29/2026) that substantially modify the regulation of the housing market in Spain. These norms, approved by the Council of Ministers on October 6, recover and expand the measures from previously rejected decrees by the Congress, adapting them to the context of the general election call for November 29. The stated objective is to protect the social function of housing and expand the supply of affordable housing through direct interventions in supply, demand, and taxation.

Key measures of Royal Decree-Law 28/2026

The first decree focuses on tenant protection, supply regulation, and financing. Among its most notable provisions are:

• Anti-eviction moratorium: Evictions of vulnerable people without alternative housing are suspended until December 31, 2030. The figure of extraordinary termination is introduced, which obliges administrations to cover the tenant's debt default to suspend the procedure, provided the owner is an individual and not a large holder.
• Extraordinary extension: Rental contracts expiring before December 31, 2028, may request a two-year extension, signed year by year, with a rent increase limit of 2%.
• Regulation of seasonal rentals and rooms: Tourist rental is limited to a maximum of 30 days. Room rental is incorporated into the Urban Leasing Law (LAU), applying the same contract durations (5 or 7 years) and protections as habitual housing rental.
• Taxation: Deductions in personal income tax (IRPF) are established for tenants (up to one month's rent for taxable bases under 33,000 euros) and bonuses for owners who rent at prices below 5% of the market price.
• "Your Home" Fund: A financing line of 10 billion euros is created, managed by the Official Credit Institute (ICO), to grant interest-free loans of up to 50,000 euros for the purchase of a first home. The mechanism establishes a grace period until the mortgage payment ends or, at most, 30 years, followed by a 10-year period for loan repayment.
• Construction support: 280 million euros in guarantees are allocated to boost industrialized construction and 400 million for the promotion of social housing, aiming to finance up to 30,000 homes.
• Restrictions on large holders and funds: The prohibition on the purchase of real estate by companies and large holders (owners of more than 10 homes) is extended until December 31, 2030, if the price is below 70% of the market price, except for exceptions for affordable or social rental.

Supply expansion and extensions: RDL 29/2026

The second decree addresses the regulation of the duration of leasing contracts. Its key point includes:

• Automatic extensions: The automatic extension of leasing contracts at the end of their term for a period equivalent to the initially agreed one (5 or 7 years) is established, unless there is a justified cause for recovery by the owner.

Political context and ratification

These measures are published after the dissolution of the General Courts. RDL 28/2026 will enter into force on November 15, 2026, subject to ratification by the Permanent Delegation of the Congress before that date. The Prime Minister, Pedro Sánchez, has indicated that the automatic renewal of rentals contained in RDL 29/2026 will not enter into force if the Permanent Delegation rejects it, a scenario considered probable given the rejection by parties such as PP, Vox, Junts, and PNV. The Executive maintains that the housing emergency circumstances justifying these measures have not changed, so the essence of the previous texts is maintained, with adjustments to avoid legal fraud and expand the scope of protections.