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Cookies Policy

 SFT SERVICIOS JURIDICOS S.L.P., uses own and third party cookies to obtain browsing data of our users in order to offer quality services and provide a better browsing experience and to identify technical problems that may appear on the web. Likewise, if you give your prior consent through your browsing, we will use cookies, which allow us to obtain more information about your preferences and to customize our website based on your individual interests.

In accordance with Article 22.2nd of the Law 34/2202, of July 1st, of Services of the Information Society and Electronic Commerce (hereinafter E-commerce Law), this website informs you about its Cookies Policy.

WHAT ARE COOKIES?

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WHAT KIND OF COOKIES DOES THIS WEBSITE USE?

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Real estate law

Law 12/2023, of 24 May, on the right to housing, together with the regulatory developments in 2024 and 2025, have brought about a profound change in the legal regime for renting and the management of the housing stock in Spain. It affects both landlords and tenants, especially in stressed market areas, and introduces new obligations, limits on rents, tax incentives and measures against vacant housing and squatting.

1. Limit on rent increases and contract duration

Legislation: Law 12/2023, art. 17, and sixth additional provision.

  • In stressed areas, the annual rent update is decoupled from the CPI and limited to a maximum of 3% (until 2025).
  • The creation of a new state reference index for future updates is foreseen.
  • The minimum duration of the lease remains 5 years (natural person) or 7 years (legal person), in accordance with the LAU (Law 29/1994).

2. Declaration of stressed residential market areas

Legislation: Law 12/2023, art. 18 et seq.

  • The Autonomous Regions or municipalities may declare stressed areas if:

a) The rental cost burden exceeds 30 % of the average rent.

b) The rental price has risen 3% above the CPI in the last 5 years.

  • In these areas it is allowed to:
    • Capping the rental price.
    • Apply tax incentives for affordable rents.
    • Requiring additional measures for large landlords.

3. Large landlords: additional obligations

Legislation: Law 12/2023, art. 3 and 19.

  • A large tenant is defined as someone who owns more than 10 dwellings (or more than 5, if the autonomous community so decides).
  • In stressed areas, the large holder must:
    • Communicate evictions to the court and social services.
    • Submit to prior mediation.
    • Not apply abusive increases.
  • They may face IBI surcharges (up to 150%) for empty homes.

4. Register of contracts and digital platforms

Legislation: Law 12/2023, art. 21; regulatory development RD 151/2024.

  • A State Register of Rental Contracts is created, mandatory as of 2 January 2025.
  • Tourist rental platforms (such as Airbnb) must verify the registration number and collaborate with the tax authorities and local councils.
  • Landlords are obliged to register contracts and provide tax data.

5. Evictions: new regulation and streamlining

Legislation: Law 12/2023, art. 37; Ley de Enjuiciamiento Civil reformed by LECrim 1/2024.

  • Notification requirements to social services are reinforced to guarantee protection for vulnerable persons.
  • For cases of illegal occupation without title (usurpation or trespassing), urgent verbal procedure (speedy trial) is enabled.
  • The possibility of paralysation due to lack of alternatives is limited when there is no recognised vulnerability.

6. Subsidised housing and incentivised affordable housing

Legislation: Law 12/2023, art. 24 and 25.

  • Establishes the obligation to reserve at least 30% of land for subsidised housing in new developments.
  • The figure of incentivised affordable housing is promoted: private renting with income limits in exchange for tax or urban planning advantages.

7. Taxation: new deductions and allowances

Legislation: Personal Income Tax Law (amended by Law 12/2023), 15th additional provision.

  • Up to 90% rebate on personal income tax for landlords renting at prices below the reference prices.
  • Decreasing allowances: 70 %, 60 % or 50 %, depending on tenant profile and rental conditions.

8. Tourist flats and neighbourhood limitations

Legislation: Horizontal Property Law (as amended by Law 12/2023), art. 17.12.

  • In order to rent a property as a tourist flat, the consent of 60% of the community of owners is required.
  • Communities may limit or prohibit this use in their statutes.

9. End of Golden Visas for real estate investment

Legislation: RD-Law 2/2024 of 30 April.

  • The automatic granting of residency for buying property in Spain is eliminated.
  • The measure aims to limit foreign real estate speculation in stressed areas.

Finally, the new Housing Law and its complementary regulations have profoundly reformulated the right to rent and the policy of access to housing. Both landlords and tenants must review their contracts, strategies and rights to adapt to the new legal framework.

Since April 2025, homeowners' associations in a large part of Spain can now prohibit or limit tourist flats in their buildings. This measure comes with the reform of the Horizontal Property Law, promoted by the central government, and aims to curb the saturation of the rental market and improve neighbourhood coexistence.

Tuesday, 04 February 2025 11:35

Housing Stressed Zones in Spain: 2025 Update

What are stressed housing market areas?

Stressed residential market areas are those areas where there is particular difficulty in accessing housing in affordable conditions. Law 12/2023, of 24 May, on the right to housing, establishes the criteria for their declaration and regulates the measures that can be applied in them to limit the impact of real estate speculation and guarantee access to housing.