Renting in Spain: Decrees Repealed, Current Prices Explained

Spain’s Congress has repealed the rental decrees that were in effect for just one or two days. Find out which rules apply now and how much housing costs

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Only last week, it looked as though Spain's tenants had finally won the protection they'd been waiting for, while landlords scrambled to reread their contracts. Two government decrees took effect on 1 and 2 October, but on 2 October parliament stopped them. So the rental rules that made headlines in Spain in recent days never actually got off the ground.

That's no reason to drop the subject. The government's idea hasn't gone away, and the market follows its own logic: living alone in Spain costs nearly twice as much as renting a room in a shared flat. Let's take it step by step.

Read also: one region of Spain offers up to €40,000 for buying, building or renovating your own home.

Buying or renting property abroad often starts with paperwork where it's easy to miss something. A real estate lawyer on VisitWorld can help you close a deal legally, resolve disputes and avoid scammers. Choose a real estate lawyer on VisitWorld by entering your citizenship and destination country.

What happened to Decrees 26/2026 and 27/2026 in Spain?

The government approved both documents on 29 September. The first, Real Decreto-ley 26/2026, took effect on 1 October, the second, 27/2026, a day later. In Spain, this type of law applies immediately but must then be confirmed by the Congress of Deputies. The vote was scheduled for 2 October.

The support wasn't there. The first decree got 172 votes in favour and 178 against. The second fared even worse: 166 for and 184 against. The opposition came from the People's Party, Vox, UPN and, decisively, the Catalan party Junts. Its representatives argue that many of the measures would backfire, meaning fewer properties on the market and higher prices. The party has promised to send the government its own version. Parliament had in fact already rejected one of the ideas, a ban on evicting vulnerable people, back in February.

The legal consequence is simple: both texts are no longer in force. But lawyers warn that during those few hours someone may have sent or received a notice of non-renewal, and such cases will most likely end up in court.

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What would the repealed decrees have changed for renting in Spain?

Tenants' rights in Spain were set to grow considerably stronger. Here are the main provisions of the two documents:

- After the minimum five years (seven if the landlord is a legal entity), the contract would renew automatically for the same period;

- Landlords would have to give six months' notice of non-renewal, tenants two months;

- A landlord refusing to renew would pay compensation of at least twelve monthly rent payments, and no less than one month's rent for every year the tenant had lived there;

- Until the end of 2027, rent increases would be capped at 2% unless the parties agreed otherwise;

- For contracts expiring before the end of 2028, an additional extension of up to two years was planned, and up to three years in stressed housing market areas;

- Temporary contracts would require a genuine reason and last between 31 days and 12 months.

Separately, Decree 26/2026 froze evictions of vulnerable people without alternative housing until the end of 2030 and capped the total rent charged for rooms in a single flat. All of this now remains only a proposal.

To find out how to start a business in Spain, see the guide from Visit World.

Which rental rules apply in Spain right now?

With the repeal, the previous wording of Article 10 of the Urban Leases Act returns. In practice, that means the following. The minimum contract term remains five years for an individual landlord and seven for a legal entity. If neither side gives notice of leaving the contract (four months for the landlord, two for the tenant), the lease renews annually for up to three more years. The twelve-month compensation and the mandatory five-year cycles are off the table.

Tenants should keep all correspondence and proof of delivery of notices, and landlords shouldn't count on the "new" six-month deadlines. If you sent or received a notice in early October, it's best to show it to a lawyer right away.

Read also: which categories of clients have the best chances of getting a mortgage in Spain and what financing terms they can expect.

What are rental prices in Spain at the end of 2026?

Now for the numbers. According to Idealista's long-term rental report for the second quarter of 2026, a one-bedroom flat in Spain costs an average of €984 a month, while a room in a shared flat costs €425. That's a difference of 132%. A studio sits in the middle at €819, which is 17% cheaper than a one-bedroom and 93% more expensive than a room.

In big cities the gap is even wider. The largest was recorded in Valencia: €1,185 for a one-bedroom against €380 for a room, or +212%. In Alicante it's €953 and €372 (+156%). In Teruel, by contrast, someone living alone overpays by only 62%: €568 for a flat.

The most expensive places to rent a one-bedroom:

- Balearic Islands: €1,347 (room €582);

- Palma: €1,292, the most expensive major city;

- Madrid: €1,277;

- Barcelona and Málaga provinces: €1,051 each.

Interestingly, in the city of Barcelona itself a one-bedroom costs €1,161 and a room €600, the highest among major cities. That's exactly why the gap here is the smallest, just 93%.

When does sharing a home make more sense in Spain?

For students, young professionals and new arrivals, renting a room in Spain remains the most affordable option. Rooms are priciest in Barcelona (€600), Madrid and Palma (€550 each). In San Sebastián they ask about €500, in Bilbao and Málaga €450. It's cheaper in Seville (€370) and Alicante (€372). Over the past year, the average room price rose by just 1%, while flats have become noticeably more expensive.

What to expect from renting a flat in Spain?

The decree episode showed one thing above all: rules in Spain can change abruptly and then swing right back. So before signing a contract, it's worth checking whether the area is classed as a stressed housing market zone, what guarantees the landlord asks for and what exactly the contract says about renewal and rent indexation. If the government and Junts do agree on a new version, it will most likely concern precisely terms and compensation.

Two decrees that appeared and vanished within a day showed how quickly rental conditions can change. A real estate lawyer will check what your contract says about term, renewal and indexation and, in case of a dispute, represent the interests of the landlord or the tenant. Find a real estate lawyer on VisitWorld by entering your citizenship and destination country.

Let's recap! How much money do you need to rent a home, pay the bills and cover daily expenses in Spain? We compare budgets for different households and costs in four cities. We've already covered the cost of living in Spain, the main payments and the financial preparation for a move.

Photo: generated by Gemini

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