Key Impacts of Royal Decrees-Law 28/2026 & 29/2026 on Lease Agreements, Rent Adjustments, and Property Management
| Executive Overview: Managing a residential rental property requires adapting to a major legal transformation. RDL 29/2026 (effective Oct 8, 2026) and RDL 28/2026 (effective Nov 15, 2026) introduce mandatory price caps, compulsory 2-year contract extensions, stricter repair response windows, and up to 100% tax deductions for rent reductions. |
- Caps on Rent Increases and Annual Price Adjustments
The new legislative framework imposes strict limits on annual rent updates for all residential leases governed by the Urban Leases Act (LAU), regardless of when the agreement was originally signed:
- Rent Freeze Period: Between October 8, 2026, and December 31, 2027, landlords cannot increase rent on active leases if the current rent exceeds the price set by the reference price index.
- Maximum 2% IRAV Limit: In cases where annual adjustments are legally permitted, the price increase is strictly capped by the Reference Index for Housing Lease Updates (IRAV), with a maximum ceiling of 2%.
- Outlook from 2028 Onward: Future annual adjustments will continue to be tied directly to the IRAV index and cannot exceed its statutory cap.
- Mandatory 2-Year Extensions and Personal Use Rules
Contract renewal conditions are significantly modified, increasing statutory tenant protections:
- Enforceable Extraordinary Extension: Tenants currently in a contract extension phase whose leases expire before December 31, 2028, are entitled to request an extraordinary 2-year extension.
- Mandatory Compliance for All Landlords: Landlords are legally required to grant this extension. This rule applies universally, regardless of whether the owner is a large property holder (gran tenedor) or whether the property is located in a designated stressed housing area.
- Eligibility Conditions: To qualify, the tenant must be fully up to date on rent payments and have punctually settled the last eight consecutive monthly installments.
- Recovery for Primary Residence: Notice periods and non-renewal compensation rules are updated, with an explicit exception allowing landlords to recover the dwelling if needed for their own personal primary residence.
- Tighter Controls on Seasonal Leases and Room Rentals
To prevent the circumvention of residential tenancy protections through alternative lease structures, new boundaries have been established:
- Redefined Temporary Leases: Seasonal rentals are reclassified as ‘temporary housing leases’ with a duration strictly bounded between 31 days and 12 months.
- Automatic Conversion Risk: Executing two consecutive temporary contracts for the same tenant will automatically reclassify the arrangement as a permanent residential lease, unless backed by formal documented justification.
- Room Rental Price Ceilings: The total combined rent collected across all individual room leases in a single dwelling cannot exceed the statutory maximum limit allowed for renting the entire property as a whole.
- Regional Coexistence: In Catalonia, these federal rules apply concurrently alongside regional seasonal rental regulations.
- Prohibited Fee Recharges and 15-Day Repair Deadline
The allocation of operating expenses and property maintenance response times are strictly regulated:
- Management & Administrative Fees: Landlords are strictly prohibited from passing real estate agency or management fees associated with contract renewals or modifications onto the tenant.
- Taxes and Community Expenses: Recharging Property Tax (IBI) or building community fees to tenants is prohibited in properties that do not have separate horizontal division titles.
- Strict 15-Day Repair Window: When a tenant notifies the landlord of habitability, health, or safety defects accompanied by a repair estimate, the landlord has exactly 15 days to initiate repairs (reduced to 5 days for temporary leases). If the landlord fails to act within this timeframe, the tenant is authorized to execute the repair independently and deduct the full cost from future rent payments.
- Personal Income Tax (IRPF) Deductions up to 100% (Spanish Tax Residents)
To balance stricter regulatory duties, the law provides significant fiscal incentives for compliant landlords:
- Up to 100% Tax Reduction: For new lease agreements signed on or after December 1, 2026, landlords can benefit from personal income tax (IRPF) deductions reaching up to 100% on net rental income.
- Qualification Criteria: To qualify, the landlord must not be classified as a large property owner (gran tenedor) and must lower the rental price by at least 5% compared to the previous lease agreement.
Regulatory Impact Summary for Landlords
| Regulatory Area | New Requirement / Limit | Key Landlord Impact |
| Rent Updates | Freeze until Dec 2027 (if over index); capped at IRAV max 2% | Limited annual income growth on existing leases. |
| Lease Extensions | Compulsory 2-year extraordinary extension upon request | Reduced ability to repossess property upon lease expiration. |
| Seasonal Rentals | Bounded 31 days – 12 months; consecutive leases convert to regular | Prevents bypass of standard LAU tenant protections. |
| Maintenance & Repairs | Mandatory action within 15 days (5 days for temporary leases) | Risk of tenant executing repair and deducting from rent. |
| Tax Incentives | Up to 100% IRPF reduction for >= 5% rent cuts | Potential tax relief for non-large property holders. |
Strategic Conclusion
Given the operational and financial implications of Reales Decretos-ley 28/2026 and 29/2026, property owners should proactively audit all existing tenant contracts, establish efficient repair management protocols, and consult specialized legal and tax advisors to optimize rental yields and ensure strict compliance.
At BERKINDER, we support you in managing your rental property and guide you through the impact of the new regulations. Send us a message or give us a call to answer any questions you may have.
