Updated: 17 October 2026
In October 2026 the Spanish government passed two emergency decrees on housing and tenancy law. Most of the changes concern long-term tenants. For buyers planning to let to holidaymakers on the Costa del Sol, only a few points really matter. Here is the overview.
Key points
Real Decreto-ley 29/2026 (in force since 8 October 2026) is a broad package. It rewrites the rules for mid-term and room lets and caps rent increases at 2% until the end of 2027. Tenants can extend existing contracts by up to two extra years. It also brings tax changes, including VAT on short-term lets.
Real Decreto-ley 28/2026 applies from 15 November 2026. Tenancies of a main home renew automatically for further five-year periods once they have run for five years (seven, if the landlord is a company). This applies unless the landlord gives at least six months’ notice. A landlord who does not renew will generally owe the tenant compensation.
Important: both are emergency decrees. Parliament has been dissolved ahead of the general election on 29 November, so a standing committee (Diputación Permanente) must ratify them within 30 days, by early November. If a decree is not ratified, it lapses. RDL 28/2026 would then never take effect, and VAT from December would not apply either.
| Measure | What changes | Affects holiday lets? |
|---|---|---|
| Renewal of main-home tenancies (RDL 28, from 15 Nov 2026) | Automatic renewal for 5 or 7 years; 6 months’ notice for the landlord | No — only if you buy with a tenant in place |
| Compensation for non-renewal (RDL 28) | The landlord generally pays compensation | No — only if you buy with a tenant in place |
| Rent increases (RDL 29) | Capped at 2% a year until the end of 2027, unless newly agreed | No |
| Extraordinary extension (RDL 29) | Up to 2 years at the tenant’s request | No |
| Mid-term lets (RDL 29, since 8 Oct 2026) | Documented reason required; generally 12 months maximum | Yes, if you let this way off-season |
| VAT (RDL 29, from 1 Dec 2026) | 10% on stays of up to 30 nights | Yes, directly |
| Council tax (IBI) surcharge on holiday lets (RDL 29) | Up to 150% in designated high-pressure housing areas | Not at present — there are no such areas on the Costa del Sol |
From 1 December 2026, letting a furnished property for up to 30 nights to the same guest is no longer VAT-exempt. It is charged at the reduced rate of 10%, as hotels are. The only exception is the landlord’s own main home. This changes the return calculation. On the other hand, it may become possible to reclaim VAT paid on costs. Check this with a tax adviser.
If you plan to let to longer-stay guests off-season, the tenant will now need a specific, documented reason, such as work or study. The contract can generally last no more than 12 months. If there is no valid reason, the term is exceeded without justification or more than two contracts are chained together, the contract counts as a main-home tenancy from day one, with full tenant protection. Contracts signed before 8 October 2026 keep the old rules until they end.
If you buy a property with an existing main-home tenancy, you take over that contract. That includes the possible compensation under RDL 28/2026: the higher of 12 months’ rent at the official reference index or one month’s rent per year the tenant has lived there. Check any tenancy agreements before you buy.
Holiday lets are not governed by Spain’s tenancy law (LAU, art. 5 e) but by Andalusia’s tourism rules. The decrees therefore do not affect your licence. The real hurdles lie elsewhere:
Check the situation in the specific municipality before you buy.
On tax: since Brexit, UK residents are treated as non-EU in Spain. They pay 24% non-resident tax on the gross rent, with no deduction for expenses. In the UK, the rental income is declared on the SA106, with Foreign Tax Credit Relief for the Spanish tax paid. Excess Spanish tax is not refunded.
More information Andalusia Holiday Rental License 2026 – BK Realty Group
No. Holiday lets remain governed by Andalusia’s tourism rules. The main change is 10% VAT on stays of up to 30 nights from 1 December 2026.
On 1 December 2026, provided Real Decreto-ley 29/2026 is ratified by early November.
A decree that is not ratified lapses. What applied in the meantime remains valid, but not for the future. RDL 28/2026 would never take effect, and VAT from December would not apply. The two decrees are voted on separately and may have different outcomes.
Updated: October 2026
