SPAIN’S new housing decree came into force on October 8, introducing changes that could affect expats renting a home, buying their first property or letting accommodation to tourists.
The government says the aim is to make more homes available for people to live in at affordable prices. The measures include help for buyers and tenants, alongside possible higher bills for holiday-let owners.
However, some changes begin later or need further decisions before they can be applied.
Could your tourist property’s tax bill rise?
Yes, depending on where it is and what your town hall decides.
Article 8 allows councils in officially designated areas where housing is under pressure to increase IBI bills for residential properties used as tourist accommodation. IBI is the annual property tax paid to the local council.
The extra charge can reach 50% of the bill, rising to 100% for owners with two or more tourist properties and 150% for those with four or more.
Someone paying €800 could therefore pay €1,200 with a 50% surcharge, or €2,000 with a 150% surcharge.
This is not an automatic nationwide increase. Each council must adopt a local tax rule to introduce it.
What changes for holiday rentals?
From December 1, furnished houses and apartments rented to the same guest for up to 30 nights become subject to 10% VAT, known in Spain as IVA.
An exception applies when the accommodation is the landlord’s main home. Rentals offering hotel-style services remain taxable.
This is separate from IBI: an owner could face both changes if their property meets the relevant conditions.
Can landlords increase the rent?
Until the end of 2027, annual increases cannot exceed 2% unless landlord and tenant reach a new agreement. Other applicable legal limits still matter.
Where rent is already above the applicable government reference-price ceiling, no increase is allowed. This ceiling is a benchmark used to limit rents where the rules apply.
Qualifying tenants can also request up to two extra years on existing contracts. They must be up to date with rent and have paid on time during the previous eight months. Exceptions include a landlord’s genuine need to use the home personally or for qualifying relatives.
What about temporary contracts and agency fees?
New temporary contracts must explain a real, provable reason for a temporary stay. Without that justification, the tenant receives the protections attached to renting a main home.
Existing temporary contracts keep their previous rules until their agreed end date.
Landlords also cannot pass fees for arranging or preparing rental contracts to tenants, or generally make tenants pay property taxes.
Is there help to buy a first home?
The TU CASA scheme offers interest-free loans of up to 20% of the home’s value, capped at €50,000, alongside a mortgage.
Detailed eligibility rules still need approval, so expats cannot yet assume they qualify. Homes bought through the scheme will have permanent limits on their resale price.
Are there other tax changes?
Eligible Spanish income-tax payers can deduct 10% of qualifying rent, subject to income and other conditions. Landlords also receive conditional tax breaks.
From 2027, the calculation of taxable income attributed to certain non-rented second homes changes. This means income the tax system assumes a property generates, even without rent.
Qualifying over-65s moving into care or a relative’s home can retain tax protection when selling their former main home.
Congress must still vote within 30 days of the decree’s promulgation to keep it in force or repeal it.
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