Update Oct. 7 — Tenant Protection Law via a Detour — Rejected — and Now After All, a New Version - What Applies Now - https://bauen-und-wohnen-mallorca.com/mieten-und-vermieten/neues-mietrecht-spanien-2026-was-auf-mallorca-gilt
UPDATE, October 2, 2026: The new Spanish rental law, which had only just gone into effect on October 1, was rejected by Parliament just one day later. On October 2, Congress did not ratify Real Decreto-ley 26/2026. As a result, the changes contained therein are no longer valid. Among others, the PP, Vox, and Junts voted against the government’s two housing decrees.
For landlords in Mallorca, this means in particular: The new rules for short-term and seasonal lease agreements—which were only introduced by the decree—the extraordinary extensionof certain existing lease agreements by up to two years, and the additional cap on rent increases at a maximum of two percent, will not become a permanent part of rental law.
This also means that the new regulations regarding the widespread 11-month leases described in the following article are, for the time being, off the table again.
Real Decreto-ley 26/2026 was published in the Spanish Official Gazette (BOE) on September 30 and entered into force on October 1. Like every Real Decreto-ley, it subsequently had to be ratified by the Congreso de los Diputados. This ratification did not take place on October 2.
As of October 1, 2026, new rules for residential rentals are in effect in Spain. Of particular relevance to property owners in Mallorca are stricter requirements for fixed-term leases, additional contract extensions, and limits on rent increases. The previously common model of a simple 11-month lease must be examined particularly carefully in the future.
With Real Decreto-ley 26/2026, Spain has amended the Ley de Arrendamientos Urbanos (LAU). The regulation was published on September 30, 2026, in the Spanish Official Gazette (BOE) and has been in effect since October 1.
For private landlords in Mallorca, four points are particularly important: fixed-term leases, rent increases, lease renewals, and additional security deposits.
11-Month Lease in Mallorca: A Fixed Term Alone Is No Longer Sufficient
The biggest practical change concerns so-called fixed-term or seasonal rentals— in Spanish, arrendamiento de vivienda temporal. Until now, such leases were often concluded for a few months or, for example, eleven months. Under the new regulations, however, the agreed-upon term alone is no longer the decisive factor. A temporary lease requires that the tenant be living temporarily away from their usual place of residence. There must be a genuine and verifiable reason for this. This reason must be explicitly stated in the lease agreement. Typical examples include a temporary work assignment, a course of study, or another verifiably limited change of residence.
The landlord must be able to prove the reason for the temporary lease
Particularly important for property owners: The temporary nature of the tenancy must not only be stated in the contract but must also actually exist and be verifiable. If there is no real and verifiable reason, the supposed fixed-term lease may be treated legally as a standard residential lease. This means that the corresponding protections and term regulations for a primary residence also apply. The heading “contrato de temporada” or a contract term of eleven months is therefore not sufficient.
How long can a fixed-term lease last?
The new LAU generally defines fixed-term leases as lasting for a period of more than 31 days up to a maximum of twelve months. If the documented reason for the fixed term continues to exist, an extension may be agreed upon. However, a longer total duration is justified only if the reason for the temporary use also continues to exist. If the tenancy exceeds twelve months without appropriate justification, or if more than two fixed-term lease agreements forfor the same apartment, the first agreement is already treated as a lease for the usual primary residence. For landlords, this means: The regularrenewal of an 11-month lease is no longer a reliable means of permanently circumventing the rules governing standard residential leases.
What happens to existing seasonal leases?
For fixed-term and seasonal lease agreements that were entered into before October 1, 2026, there is a transitional provision. In principle, they will retain their previous legal classification as leases for purposes other than ordinary residential use until the agreed-upon end of the lease term. However, upon expiration of the agreed-upon term, these leases will end without the possibility of automatic renewal. If a fixed-term lease is subsequently entered into again, the new law will apply. Owners with currently active 11-month or seasonal leases, in particular, should therefore check—before renewing—whether the requirements for a genuine fixed-term lease are still met.
Rent increases in 2026 and 2027: additional 2 percent cap
There is also an important transitional provision for existing residential lease agreements. An additional cap applies to annual rent adjustments due between October 1, 2026, and December 31, 2027. If the current rent is already above the maximum allowed under the government’s reference system, it may not be increased further. In all other cases, landlords and tenants may agree on a new adjustment. If no agreement is reached, the increase may not exceed 2 percent.
Landlords should therefore not automatically apply an annual adjustment provided for in the lease agreement at this time without first checking which statutory limit applies to the respective contract.
Existing lease agreements may be extended by up to two years
Another change affects current leases for a tenant’s primary residence. For certain leases whose statutory or implied renewal period ends before December 31, 2028, the tenant may apply for an extraordinary extension. This extension is granted for one year at a time and may total up to two additional years. One of the requirements is that the tenant be current with their payments and have been so for the preceding eight months. For landlords, this means: The contractually stipulated end date does not automatically mean in every case that the apartment will subsequently be available for rent. Whether the extraordinary extension applies in a specific case depends on the lease agreement and the legal requirements.
Additional security deposit for fixed-term leases limited to one month’s rent
The new regulation also limits additional security deposits. For standard residential lease agreements, the security deposit agreed upon in addition to the statutory security deposit may not exceed two months’ rent for lease terms covered by law. For fixed-term leases, the upper limit will in the future be one month’s rent. The security previously required in some cases through additional contractual arrangements should therefore also be reviewed.
Brokerage and contract costs may not be passed on to the tenant
The law also explicitly clarifies that costs for real estate brokerage and contractual formalities may not be passed on to the tenant, either directly or indirectly. This includes services related to the preparation, conclusion, administration, amendment, or renewal of the lease agreement. This is particularly relevant for landlords when an agency is commissioned to handle the rental or contract processing.
Mallorca is currently not designated as a “zona tensionada”
When applying the new rental law, a distinction must be made between general Spanish rules and regulations that apply only in officially designated zonas de mercado residencial tensionado. In the Balearic Islands, no such tight housing markets have currently been designated under the government’s procedure. Provisions whose application is expressly tied to this status therefore do not automatically apply in Mallorca. However, this does not mean that the new rental law does not apply in Mallorca at all. The new definitions and requirements for fixed-term leases, as well as other amendments to the LAU, apply regardless of such a designation.
Do Not Confuse Fixed-Term Leases, Residential Leases, and Vacation Rentals
For real estate in Mallorca, another distinction is crucial: long-term residential leases, fixed-term leases, and tourist vacation rentals are legally distinct forms of use. A short-term lease is not a tourist rental. Conversely, a residential lease cannot be converted into a short-term lease solely by having a short contract term. When drafting the contract, it is therefore essential to first clarify the actual purpose of the rental.
What Landlords in Mallorca Should Check Now
Before entering into a new lease agreement or renewing existing ones, the following points are particularly important:
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Is this actually a primary residence, a fixed-term lease, or another type of rental arrangement?
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In the case of a fixed-term lease, is there a specific and verifiable reason for the fixed term?
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Is this reason explicitly stated in the contract?
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Is this a renewal contract for an existing fixed-term lease?
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What rule applies to the next rent adjustment?
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Can the tenant claim an extraordinary contract extension?
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Do the security deposit and additional collateral comply with the new limits?
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Are brokerage or contract fees correctly allocated?
Action is particularly needed in the case of 11-month leases that have been used to date. A short lease term alone does not protect the landlord from the tenancy being legally classified as a standard residential lease.
Real Decreto-ley 26/2026 has been in effect since October 1, 2026. Since, under the Spanish Constitution, a Real Decreto-ley must be ratified by Parliament, the legal situation in effect at the time should be reviewed before entering into or amending a contract.
This article provides an overview of the current legal situation and is not a substitute for individual legal advice.
