Spain’s Congress Rejects New Housing and Rental Measures: What Property Owners and Buyers Need to Know
Spain’s Congress of Deputies has rejected two major housing decrees proposed by the Spanish Government, bringing an end to a package of measures that would have introduced significant changes affecting landlords, tenants, tourist accommodation and property investment.
The votes took place on Friday 2 October 2026, just days after the measures had been approved by the Council of Ministers and published as Royal Decree-Laws.
The first and more extensive housing decree was rejected by 178 votes to 172, with PP, Vox, Junts and UPN voting against it. EFE Noticias
A second decree dealing specifically with the stability and renewal of residential rental contracts was also rejected, this time by 184 votes to 166. Cadena SER
Because Royal Decree-Laws require ratification by Congress to remain in force, the rejection means the measures contained within the two decrees do not continue as law.
For property owners and international buyers on the Costa del Sol, the decision is particularly relevant because the measures covered residential rentals, tourist lets, property taxation, SOCIMIs and property acquisitions by certain corporate entities.
What Has Spain’s Congress Rejected?
The first package, Royal Decree-Law 26/2026, was extensive.
It included changes to Spain’s rental legislation alongside new tax measures intended by the Government to encourage long-term residential letting and affordable housing.
Among the principal measures that have now fallen were:
New regulation of seasonal and room-by-room rental contracts; extraordinary extensions of qualifying residential rental contracts; new restrictions affecting property purchases by certain companies, funds and other entities; a new 10% VAT treatment for qualifying short-term tourist accommodation; the ability for municipalities to introduce additional IBI surcharges on tourist-use properties; enhanced income-tax incentives for qualifying landlords reducing rents; increased taxation affecting certain residential income within SOCIMIs; further IBI provisions relating to qualifying vacant homes; and a new government-backed financing programme for some first-home buyers. La Moncloa
The second decree, Royal Decree-Law 27/2026, focused more specifically on extending the stability of habitual-residence rental contracts.
Congress rejected that measure as well. Congreso de los Diputados
Proposed Tourist-Rental Tax Changes Have Fallen
One of the most relevant elements for property owners on the Costa del Sol concerned short-term accommodation.
The rejected legislation would have applied 10% VAT to furnished apartment or residential accommodation rentals where the stay did not exceed 30 nights, as well as where hotel-type complementary services were provided. La Moncloa
The decree also would have allowed local councils to impose an additional IBI surcharge of up to 50% on residential properties used for tourist accommodation.
For owners with four or more properties used in this way, the surcharge could have increased to 100% under the rejected rules. La Moncloa
These provisions were potentially significant in destinations such as Marbella, Estepona, Benahavís, Mijas and the wider Costa del Sol, where holiday accommodation represents an established part of the residential market.
Following Congress’s rejection of the decree, these particular changes do not remain in force.
Existing national, regional and municipal rules governing tourist accommodation remain relevant, including Andalucía’s own regulations and local restrictions where applicable.
Proposed Changes to Long-Term Rentals Also Rejected
The package also contained substantial changes affecting traditional residential landlords.
Tenants with qualifying rental agreements expiring before the end of 2028 would have been able to request extraordinary extensions of up to two additional years, generally retaining the terms of the existing agreement.
The landlord would have been required to accept the extension subject to specified exceptions, including circumstances where the property was genuinely required by the owner or certain family members. La Moncloa
The legislation also sought to regulate seasonal rentals more closely.
Landlords would have needed to justify the reason for a tenant’s temporary stay, with the decree generally defining temporary rental periods as between 31 days and 12 months.
For room-by-room rentals, the combined rent charged for individual rooms would not have been permitted to exceed the rent applicable to the complete property. La Moncloa
These proposed changes were part of the package rejected by Congress.
Landlord Tax Incentives Also Fall Away
The Government had combined additional rental regulation with potentially significant tax incentives for landlords.
Under the rejected decree, qualifying landlords could have received enhanced reductions against rental income for entering into certain new contracts at lower rents.
In some circumstances, the reduction could have reached 100% where a new rental agreement reduced the rent by more than 5% and satisfied the additional statutory requirements. La Moncloa
The package also proposed a new national income-tax deduction for qualifying tenants below a specified income threshold.
These measures have fallen with the rejection of the decree.
New Restrictions on Corporate Property Purchases Rejected
Another important part of the legislation concerned purchases by companies, funds and other entities whose activities included acquiring property.
Until the end of 2028, such entities would generally only have been permitted to acquire a home where the purchase price was below 70% of its appraised market value, subject to exceptions for uses including affordable housing, social housing and certain forms of supported accommodation. La Moncloa
This was intended by the Government as an anti-speculation measure.
The restriction has now fallen following Congress’s refusal to ratify the decree.
Changes Affecting SOCIMIs Also Rejected
Spain’s listed property investment companies, known as SOCIMIs, were also affected by the legislation.
The decree proposed increasing the special tax applicable to certain undistributed profits derived from residential rental activities to 25%, with reductions available depending upon the proportion of housing offered under affordability criteria. BOE
As with the other measures contained within Royal Decree-Law 26/2026, these changes do not continue following the parliamentary rejection.
Why Were the Housing Decrees Rejected?
Spain’s Government does not currently hold an outright parliamentary majority and therefore requires support from other political groups to pass legislation.
In the first vote, PP, Vox, Junts and UPN voted against the decree, producing 178 votes against and 172 in favour. EFE Noticias
Junts proved particularly important to the outcome.
The party argued that the Government’s proposed measures would not resolve Spain’s shortage of housing and could instead have negative consequences for supply. That is the party’s stated political and economic position rather than an established outcome of the measures themselves. Reuters
The Government defended the package as a response to Spain’s housing-access problems and argued that the measures would provide greater protection for tenants while encouraging affordable housing. La Moncloa
The parliamentary vote ultimately means neither decree secured the support required to remain in force.
What About the Proposed 100% Tax on Non-EU Property Buyers?
For international buyers, this is an important distinction.
The widely reported proposal to impose a tax of up to 100% on certain property purchases by non-EU, non-resident buyers was not contained within the two decrees rejected on 2 October.
It therefore was not rejected in yesterday’s vote.
The proposal forms part of a separate government initiative and, as of October 2026, has not become law.
This distinction is particularly relevant to British, American and other non-EU purchasers considering property in Spain.
Yesterday’s parliamentary defeat does not formally abolish or reject the separate proposal. Equally, buyers should not mistake earlier political announcements surrounding the 100% measure for legislation already applying to property purchases.
Any future version would require the necessary legislative and parliamentary process before becoming law.
What Does This Mean for Costa del Sol Property Owners?
For existing owners, the immediate significance is that a substantial package of proposed changes to the housing and rental market has failed to secure parliamentary approval.
The rejected measures would have affected several areas particularly relevant to the Costa del Sol, including:
Tourist accommodation — proposed VAT and IBI changes have fallen with the decree.
Long-term rentals — the proposed extraordinary extensions and additional rules contained within these decrees do not continue.
Seasonal rentals — the new national framework proposed within the decree has been rejected.
Landlord taxation — the new tax incentives contained within this package have also fallen.
Corporate property acquisitions — the proposed temporary restrictions applying to certain companies and funds have not survived parliamentary ratification.
This does not mean Spain’s existing housing, rental or tourist-accommodation legislation has disappeared.
Property owners remain subject to existing national legislation, Andalucía’s regional regulations and any applicable municipal rules.
Professional legal and tax advice therefore remains important before purchasing or letting a property.
What Does the Vote Mean for International Property Buyers?
For buyers considering Marbella and the wider Costa del Sol, the most important message is one of clarity rather than speculation.
Spain continues to debate significant housing reforms, but political announcements and proposed legislation should not be confused with measures that have actually become permanent law.
The events of 2 October demonstrate the importance of that distinction.
Two Royal Decree-Laws had been approved by the Council of Ministers and published in the Official State Gazette, but Congress subsequently refused to ratify them.
Likewise, the separate proposal concerning a potential 100% tax on certain non-EU, non-resident property purchases should continue to be described as a proposal rather than an existing property tax unless and until legislation is approved.
For international buyers making substantial property decisions, understanding the difference between announced policy, proposed legislation and law currently in force is essential.
Spain’s Housing Debate Is Likely to Continue
The rejection of the two decrees is unlikely to mark the end of Spain’s housing-policy debate.
Housing affordability, rental supply, tourist accommodation and access to homes remain major issues nationally, and the Government may seek to introduce revised measures or negotiate alternative legislation capable of securing sufficient parliamentary support.
For Costa del Sol property owners and prospective purchasers, further developments therefore remain worth monitoring closely.
What is clear following the vote on 2 October 2026 is that the two latest housing decrees failed to obtain parliamentary approval and the measures they contained do not continue in force. EFE Noticias
For a market with a particularly high proportion of international owners and buyers, that is a significant property story.
Buying Property on the Costa del Sol
Jason Callow Homes specialises in new and off-plan property throughout Marbella and the Costa del Sol.
We work with international buyers searching across Marbella, Benahavís, Estepona, Sotogrande, Mijas and the wider Costa del Sol, helping clients compare developments, locations, developers, specifications and pricing.
Whether you are considering a contemporary apartment, luxury villa, branded residence, golf property or beachfront home, our team can prepare a tailored selection of the latest new and off-plan opportunities.
Contact Jason Callow Homes for our latest selection of new and off-plan homes for sale on the Costa del Sol.
Property legislation and taxation can change. This article is intended as general market information and should not be considered legal or tax advice. Buyers and property owners should obtain advice appropriate to their individual circumstances.
Sources & Further Reading
Congress of Deputies — Official documentation on the two housing decrees
La Moncloa — Official Government summary of the housing measures
BOE — Royal Decree-Law 26/2026
EFE — Congress rejects the Government’s two housing decrees, 2 October 2026
