Spanish Ministry of Consumer Affairs orders 13 large landlords to extend rents

Spain's Ministry of Consumer Affairs sent formal letters to 13 major real estate companies and investment funds, informing them they must obligatorily extend tenant contracts expiring between March 22, 2026, and December 31, 2027, if tenants request it. These companies manage over 100,000 rental properties across Spain.

Key points

• The mandatory extension allows tenants an extraordinary renewal of up to two additional years without price increases.
• The measure is part of a Royal Decree-Law approved on March 20 in response to the economic impact of the war in the Middle East.
• The decree also caps annual rent updates at 2%.
• The decree needs validation by the Congress within one month, and its future is uncertain due to opposition from PP, Vox, and Junts.
• The Ministry, led by Pablo Bustinduy, requested immediate adoption of internal procedures for compliance.

Why it matters

This government action aims to mitigate tension in the rental market by creating a new right for tenants to renew contracts, although the decree's final validity remains subject to parliamentary approval.