Spain Publishes Second Housing Decree Governing Indefinite Extension of Tenancy Agreements
- On Tuesday, Spain's Cabinet approved a second royal decree to address the housing crisis, with the BOE publishing the text to strengthen tenancy agreement stability for primary residences.
- Recent evictions, such as that of Maricarmen, triggered these measures, which extend the validity of the so-called "social shield" for vulnerable people until December 31, 2030.
- New provisions mandate that tenancy agreements renew for five years—seven if the landlord is a legal entity—while restricting property purchases by "vulture funds" for two years if they pay less than 70 per cent of appraised value.
- Landlords opposing renewal must provide six months' notice and pay Compensation equivalent to at least 12 months' rent, unless tenants reject a "binding offer to enter into" a new agreement.
- Parliament will vote this Friday, though the Catalan party Junts has announced its opposition to turning tenancies into open-ended contracts, complicating the decree's passage.
26 Articles
26 Articles
What are the main criticisms of Spain's proposed housing law?
Millions in Spain are calling for housing reform and the government has responded with two sweeping reform bills. Ahead of the crunch vote in the Spanish Congress on Friday, The Local looks into the main criticisms of the measures.
The president of the Chamber of Navarre warns that the measures contained in the texts approved by the Council of Ministers and that this Friday must endorse the Congress not only will not succeed in increasing the supply but will reduce it even more
The government publishes the rule promoted by Sumar this Thursday just one day before submitting it to Congress. Junts keeps his decision open and the executive faces another vote without having guaranteed the necessary support
During the negotiation, the government even probed the possibility of further cutting the 'Decree Maricarmen'. Minister Carlos Córdoba imposed a lax regulation of the "vulture funds" that does not prevent them from negotiating with homes.
The Executive justifies the reduction of more than 4,000 housing units due to "inflation." It is a program diverted to the Ministry of Social Security during the extensions of 2024 and 2025.
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