The Spanish government, led by Pedro Sánchez, has unveiled a new Royal Decree aimed at cooling an overheated rental market. The main surprise for property owners is a fiscal “carrot.” Landlords will receive a 100% personal income tax (IRPF) exemption on rental income if, when renewing a lease, they keep the rent unchanged and do not raise prices. The measure is designed to offset inflation through tax relief rather than passing costs on to tenants.
The second key measure is a tough clampdown on room-by-room rentals (alquiler por habitaciones). Authorities have observed that many landlords are splitting apartments into rooms to bypass rent caps on entire properties and generate higher returns. Under the new rule, the combined rent of all rooms may not exceed the market price of renting the whole apartment. In so-called “stressed areas” (zonas tensionadas), room rentals will be subject to the same price limits as standard housing.
A third blow targets seasonal rental contracts (alquiler de temporada). This format is often used fictitiously to avoid the obligations of long-term leases (5–7 years). The government is introducing strict criteria to define what qualifies as “seasonal” and a system of fines for disguising permanent residence as temporary. Investors will now be required to prove the genuinely temporary nature of tenants’ stays.
The second key measure is a tough clampdown on room-by-room rentals (alquiler por habitaciones). Authorities have observed that many landlords are splitting apartments into rooms to bypass rent caps on entire properties and generate higher returns. Under the new rule, the combined rent of all rooms may not exceed the market price of renting the whole apartment. In so-called “stressed areas” (zonas tensionadas), room rentals will be subject to the same price limits as standard housing.
A third blow targets seasonal rental contracts (alquiler de temporada). This format is often used fictitiously to avoid the obligations of long-term leases (5–7 years). The government is introducing strict criteria to define what qualifies as “seasonal” and a system of fines for disguising permanent residence as temporary. Investors will now be required to prove the genuinely temporary nature of tenants’ stays.
