Spain Unveils Broad Housing Measures as Protests Continue

By Staff, Agencies

Spain published a sweeping housing decree on Wednesday introducing new tenant protections and tighter restrictions on property investors, as housing protests continued in Madrid and Malaga ahead of a key parliamentary vote on Friday.

The decree, published in Spain’s Official State Gazette, takes effect Thursday and contains 20 articles covering evictions, rents, taxation and affordable housing.

One of its main measures targets so-called “vulture funds.” Until the end of 2028, companies and other entities whose business includes acquiring real estate will be barred from purchasing homes for less than 70% of their appraised market value. Exceptions include purchases involving social and affordable housing.

The decree also allows certain evictions involving vulnerable people who have no alternative accommodation to be suspended through 2030. It introduces stricter rules for temporary and room rentals, requiring temporary leases to have a genuine and demonstrable justification. Repeated or excessively long temporary contracts could be treated as standard residential leases.

For room rentals, the combined amount charged for individual rooms cannot exceed what could legally be charged for renting the entire property.

Rent increases will also face additional restrictions through the end of 2027. No increase will be permitted where the existing rent is already above the applicable reference-price ceiling. In other cases, increases will generally be capped at 2% unless the landlord and tenant reach a new agreement.

A second decree, expected to be published Thursday, will introduce separate measures for the automatic renewal of rental contracts.

According to El Pais, landlords who choose not to renew a lease after the mandatory rental period would generally have to compensate tenants with at least 12 months’ rent. Exceptions would include cases in which the owner requires the property for themselves or certain family members.

Both decrees are scheduled to go before parliament for an extraordinary ratification vote on Friday.

The measures come after several days of housing protests across Spain. In Madrid, demonstrators spent a fourth consecutive night camped in the central Puerta del Sol. The protest intensified following the eviction of 87-year-old Maricarmen Abascal, who had lived in her home for more than seven decades.

In Malaga, around 50 people in roughly 25 tents remained overnight in Plaza de la Constitucion on Wednesday. Organizers are also planning another housing demonstration in the city on Saturday.

The government faces uncertainty over whether lawmakers will approve the decrees. A similar housing measure was rejected by Congress in April, with lawmakers voting 177-166 against it.

Opposition leader Alberto Nunez Feijoo said his conservative Popular Party would oppose both decrees, describing the package as a “trap.”

“Don’t count on me to rip off anyone,” he said, arguing that the government should instead prioritize increasing the housing supply.