As of October 1, 2026, new rules for residential rentals will take effect in Spain. Of particular relevance to property owners in Mallorca are stricter requirements for fixed-term leases, additional lease 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 Royal Decree-Law 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 contracts 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 outside their usual place of residence. There must be an actual 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 cause, the supposed seasonal lease agreement may be treated legally as a standard residential lease agreement. 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, between the same parties,for the same apartment, even the first agreement is 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 leases that were entered into before October 1, 2026, there is a transitional provision. In principle, they retain their previous legal classification as rentals for purposes other than ordinary residential use until the agreed-upon end of the contract. However, upon expiration of the agreed-upon term, these leases 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 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 amount applicable 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 agreement.
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 is current with their payments and has 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 now 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 be one month’s rent in the future. The security previously required in some cases through additional contractual arrangements should therefore also be reviewed.
Brokerage and contract fees 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, modification, 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 strained housing markets have currently been designated under the government’s procedure. Therefore, provisions whose application is expressly tied to this status 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 whether an area has been designated as such.
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 simply 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 or renewing existing leases, 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 lease agreement?
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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 costs correctly allocated?
Action is particularly needed in the case of 11-month leases that have been used to date. A short contract 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.
