Two laws came into force in Spain — one on October 1, another on October 2 — significantly expanding tenants’ rights and limiting landlords’ ability to dispose of their apartments. Now it is more difficult for owners to reclaim housing; they must give tenants advance notice and in many cases must pay compensation even when legally choosing not to renew the lease.

Automatic lease renewal

After the minimum rental period — 5 years, or 7 years if the owner is a legal entity — the lease may automatically renew for the same period. To prevent this, the owner must notify of unwillingness to continue the lease at least six months before the end of the term. Tenants need only two months to give such notice.

Compensation for returning the apartment

If the owner properly notifies of unwillingness to continue the lease, the law still provides for tenant compensation. The amount is at least the equivalent of 12 months’ rent for comparable housing, calculated, if possible, according to the state’s reference price system. However, compensation cannot be less than one month’s rent for each year the tenant lived in the apartment.

There is an exception: if the apartment is genuinely needed for the person’s own permanent residence or for relatives specified by law, compensation can be waived. But if within three months after returning the apartment, the owner does not actually move in, the tenant has the right to claim compensation.

New obligations for apartment owners in Spain

Major changes for landlords following the passage of laws on October 1 and 2

  • Notify of lease non-renewal6 months aheadtenants need only 2 months for this
  • Minimum rental period before automatic renewal5 years7 years if owner is a legal entity
  • Tenant compensation for returning apartmentfrom 12 months’ rentno less than one month’s rent for each year lived
  • Exception without compensationowner’s or relatives’ occupancymust actually move in within 3 months
  • Suspension of eviction of vulnerable tenantsuntil December 31, 2030
  • Mandatory lease extensionup to 2 yearsfor leases ending before December 31, 2028

Obligation transfers to the new owner

The sale of a rented apartment does not itself deprive the tenant of compensation rights. Under conditions established by law, this obligation transfers to the new owner. This means a buyer of an apartment with a tenant whom they wish to evict may be required to pay the same compensation.

Protection of vulnerable tenants and rent nonpayment

For categories of owners specified by law, the eviction procedure for vulnerable tenants without alternative housing may be suspended until December 31, 2030. Separate provisions apply for evictions due to nonpayment of rent: if the tenant is economically vulnerable and the competent administration has not provided alternative housing, the administration must pay the owner within two months the amount needed to terminate the eviction procedure.

Вхідні двері під'їзду житлового будинку в іспанському місті з поштовими скриньками

Mandatory lease extension for up to two more years

For existing leases ending before December 31, 2028, a tenant may request extraordinary lease renewal for yearly periods, up to two additional years. The condition is that the tenant paid promptly and had no arrears during the previous eight months. As a general rule, the owner must agree, and the terms of the existing lease are preserved during such renewal.