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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.
2. Declaration of stressed residential market areas
Legislation: Law 12/2023, art. 18 et seq.
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.
3. Large landlords: additional obligations
Legislation: Law 12/2023, art. 3 and 19.
4. Register of contracts and digital platforms
Legislation: Law 12/2023, art. 21; regulatory development RD 151/2024.
5. Evictions: new regulation and streamlining
Legislation: Law 12/2023, art. 37; Ley de Enjuiciamiento Civil reformed by LECrim 1/2024.
6. Subsidised housing and incentivised affordable housing
Legislation: Law 12/2023, art. 24 and 25.
7. Taxation: new deductions and allowances
Legislation: Personal Income Tax Law (amended by Law 12/2023), 15th additional provision.
8. Tourist flats and neighbourhood limitations
Legislation: Horizontal Property Law (as amended by Law 12/2023), art. 17.12.
9. End of Golden Visas for real estate investment
Legislation: RD-Law 2/2024 of 30 April.
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.
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.
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