If in recent weeks you have been looking worriedly at the date of your rental contract, you are not the only one, the fall of the decree has changed things completely.
The repeal of the decree that extended protection to tenants has opened a scenario of legal uncertainty in the rental market in Spain. The rule, which contemplated an extraordinary extension of up to two years in contracts and limited increases to 2%, It has become void after failing to pass its validation in Congress.
Now, owners and tenants are moving in a field where the key lies in what decisions were made while the measure was in force.
What happens with the extensions already requested?
The most important point (and the one that generates the most doubts) is what happens to those who have already requested to benefit from the extension. The majority interpretation among experts says that The repeal does not have retroactive effects.
This means that all those tenants who formally notified their intention to extend the contract while the decree was in force maintain that right. In practice, it is enough to have sent a reliable communication to the ownerlike a burofax, before the fall of the norm.
What can landlords do if they do not accept the extension
If an owner decides not to recognize the extension, their only option is to initiate an eviction process due to termination of the contract when the expiration date arrives.
This type of procedure is not immediate and can escalate judicially:
- Can go through courts first instance
- Getting to the Provincial Court
- Even end up in the Supreme Court
During this process, the effective eviction is usually not carried out until there is a firm resolution, which in practice lengthens the tenant’s stay in the home.
When they can recover the home
There is one important exception that remains in effect: the use of housing due to family need. The owners can recover the property if they prove that they need it for themselves or for immediate family members.
Some examples include:
- Children who need to become independent
- Situations arising from a divorce
- Justified housing needs of the owner
Of course, it is not enough to just claim it, It is essential to provide documentary evidence that proves this need. Otherwise, it could be considered fraudulent use of this route.
What happens with the 2% limit on increases
Here the panorama changes quite a bit. Unlike extensions, the 2% limit on the annual rent update loses effect with the repeal of the decree. In other words, it is only maintained in contracts whose update occurred while the rule was in force, and from now on, rent reviews are once again governed by what is established in the contract and the general regulations.
A strange legal situation
The current scenario is unusual in the Spanish legal system. It is not common for a decree to generate rights during its validity and to be subsequently repealed without a clear transition.
The lack of strong precedent means that many issues will end up being resolved in court, adding uncertainty for both landlords and tenants.
How many people could have benefited
Although there are no official figures, different organizations offer an approximation of the scope of the measure.
- More than 50,000 potential applications would have been processed through social platforms and groups
- The Government estimates that up to 2.6 million people they could have been in a position to benefit from the extension between 2026 and 2027
- Madrid concentrates the largest number of possible beneficiaries
This may explain why this decline has had a direct impact on a significant part of the real estate market.
In this context, both owners and tenants will have to move with caution, because what is at stake is no longer just a contractbut rather how to interpret a rule that has left more questions than answers.