Given the pressure exerted by the protests in different cities in Spain on the regularization of housing and rents, as well as the encampments that are still found in busy squares such as Puerta del Sol, the Government of Spain approved a series of reforms to the Urban Leases Law present in different royal decrees. A quick solution to the impossibility of approving the so-called “Maricarmen decree-laws” and the announcement of the call for general elections for this coming November 29.
One of the texts approved and already published in the Official State Gazette is Royal Decree-Law 28/2026, of October 6, which establishes a series of modifications in what is known as LAU, among which is a change in article 10 of said norm regarding extensions of rental contracts and the right of tenants to receive compensation in the event that these do not occur. It is expected to come into force from November 15, although it will depend on the vote of the Permanent Deputation of Congress.
The owner must communicate the cessation of the rental six months before its expiration.
According to what is established in the single article that modifies article 10 of Law 29/1994, of November 24, on Urban Leases, when five years of renting the home have elapsed, or seven years if the tenant is a legal entity, this must be extended “tacitly and obligatorily for successive terms of five years, or seven years if the landlord is a legal entity.” Although, for this, neither party must have previously communicated its intention to terminate the contract.
Likewise, it establishes a new minimum notice period that the landlord must adhere to if he wants to communicate to his tenant the intention to cease the extension of his contract. The previous text of the Urban Leasing Law established this period at least four months before the end date of the contract. However, the entry into force of the royal decree establishes this minimum six months in advance.
The standard establishes a series of compensations
If it is not communicated within the established six-month period, the contract will be automatically renewed and its duration will be five years for tenants who are a natural person and seven years for those who are a legal entity. While when the tenant wants to end the rental agreement, the deadline remains two months before the contract end date to avoid extension of the agreement.
However, the new rule not only modifies the notice and renewal periods of contracts, but also establishes compensation to the tenant in the event that the owner communicates his intention not to extend the contract. The amount of said compensation It will be equivalent to the highest of the following amounts:
- Twelve monthly payments calculated according to the highest rental price established by the state system for that type of housing.
- One monthly payment per year who has resided in the property, calculated according to the same price.
Cases in which the landlord will not have to pay compensation
Although there are a series of exceptions for which the landlord will not have to compensate his tenant even if he decides not to renew the contract. Specifically, it establishes that it is not applicable when the tenant has not resided in the property for more than six months in the twelve prior to the denial of the rental extension. As long as this absence is not due to reasons of health, study, caring for family members or if your spouse and dependent children continue to live there.
The owner must not pay compensation when your tenant has another home “on the date of notification and in the same municipality”, either as the owner of full ownership or as the right to its use and enjoyment. Nor when the landlord needs the property to convert it into his permanent residence, for second-degree relatives by blood or adoption, or for his spouse, as long as there is a final judgment of separation, divorce or marital annulment.
However, the home must be occupied within three months following the termination of the rental contract. Otherwise, the tenant will once again have the right to demand compensation. Although this It will not be necessary in case of a new contract signature or if the lessee decides to reject said signature, as long as the document respects the obligations explained above.