New Rental Laws in Spain: What Landlords and Tenants in Mallorca Need to Know Now

Two new decrees are changing key rules for residential rentals in Spain. Among other things, these changes affect contract renewals, notice periods, short-term and room rentals, rent increases, repairs, and tax incentives. For Mallorca, existing lease agreements and temporary rental models are particularly relevant.

Royal Decree-Law 29/2026 will generally take effect on October 8, 2026. Real Decreto-ley 28/2026, which sets forth the new rules for the long-term extension of standard residential lease agreements, will take effect on November 15, 2026. Both decrees must still be approved by the Permanent Commission. (boe.es)

Standard Lease Agreements: Extension for an Additional Five or Seven Years

Royal Decree-Law 28/2026 amends Article 10 of Spain’s Urban Lease Law. Upon expiration of the statutory minimum term of five years— or seven years, if the landlord is a legal entity—the lease is generally extended for an additional five or seven years, respectively, unless it is terminated in a timely manner. In the future, landlords will generally be required to give six months’ notice prior to the end of the lease. Tenants must give at least two months’ notice. (boe.es) The decree contains transitional provisions for existing leases. If the contract is set to expire in less than six months when the decree takes effect, a shorter notice period may temporarily apply to landlords.

Failure to renew may trigger compensation

Another new provision is that, under certain conditions, a landlord’s failure to renew the lease after the minimum term has expired may trigger a. However, the law provides for exceptions, including proven personal need on the part of the landlord or certain close relatives, as well as in other explicitly regulated cases. (boe.es)

It is therefore becoming increasingly important for landlords to review the contract’s expiration date, grounds for termination, and notice periods in a timely manner.

Additionally, an extraordinary extension of up to two years

Real Decreto-ley 29/2026 also introduces another option for extension. Certain tenants may request an extraordinary extension in annual increments for a total of up to two years. One of the requirements is that they are current with their rent payments and have been so during the preceding months. The landlord must, in principle, accept the extension. Exceptions apply, for example, in the case of a newly agreed-upon lease or if it can be proven that the apartment is needed for the landlord himself or for certain family members. (boe.es)

Rent Increases Capped Through the End of 2027

The annual adjustment of existing rents will also be temporarily restricted. Additional limits apply to adjustments through December 31, 2027. If an existing rent is already above an applicable government reference value, a further increase may be prohibited. In other cases, an adjustment may be agreed upon. Without an agreement, the increase may generally not exceed two percent under the new decree. (boe.es)

Landlords should therefore check which rule applies to the specific lease agreement before implementing any periodic rent increase.

Fixed-term leases require a verifiable reason

The stricter rules for temporary leases are particularly relevant for Mallorca. In the future, a fixed-term lease must be based on an actual and verifiable temporary housing need. The reason must be explicitly stated in the contract. In general, temporary leases are defined as agreements lasting more than 31 days and, as a rule, no more than twelve months. If an apartment is rented for longer than twelve months without a continuing and verifiable time-based reason, or if more than two consecutive fixed-term lease agreements &for the same apartment, the tenancy may be treated as a regular residential lease. (boe.es)

Existing fixed-term lease agreements will generally continue to be governed by their previous legal framework. However, if the agreement is renewed, the new rules may apply.

Renting out rooms is explicitly covered

The rental of individual rooms will also be more strictly regulated. In the future, the actual residential purpose of the rental will be a more decisive factor. If a room is in fact made available for permanent residence, the corresponding protective provisions of residential tenancy law may apply. In addition, the total of the room rents charged simultaneously must not exceed the permissible total rent for the apartment. In tight housing markets, additional rent caps may apply. (boe.es)

Real estate agent and contract fees may not be passed on to tenants

The new text clarifies that costs for real estate brokerage and contractual formalities may not be passed on to the tenant, either directly or indirectly. This applies, among other things, to services related to the preparation, execution, administration, modification, or renewal of a lease agreement. (boe.es)

Existing lease templates should therefore be reviewed for relevant clauses.

Repairs: Landlords Must Respond More Quickly

Tenants’ rights are also being expanded with regard to necessary repairs. If damage affects the livability, safety, or health of the apartment, the tenant may request in writing that the landlord remedy the issue and provide a cost estimate. The landlord then generally has five business days to respond, propose an alternative solution, or arrange for the work to be done. (boe.es) If no response is received or if the repair is refused without sufficient cause, the tenant may, subject to the statutory requirements, have the necessary work performed and claim the documented costs or offset them against a subsequent rent payment.

Vacant Apartments: More Leeway for Municipalities

The decree also strengthens the tools available to municipalities regarding vacant properties. Municipalities can impose higher property tax (IBI) surcharges on permanently vacant apartments. Depending on the duration of the vacancy and the number of properties, substantial surcharges may be imposed. However, the actual application depends on the respective municipality. In addition, numerous exceptions apply, including certain professional or health-related reasons, renovations, legal disputes, or temporary offers to sell or rent. (boe.es)

For property owners in Mallorca, this means that the actual tax burden may vary by municipality in the future.

Tax incentives for more affordable rentals

The decree does not focus solely on restrictions. Depending on the rent, the terms of the lease, and other conditions, private landlords may be eligible for higher tax deductions on their positive net rental income. In certain situations, the reduction can reach up to 100 percent. However, the requirements vary considerably. Decisive factors may include, among other things, the amount of the new rent, the previous lease, the tenant, and the location of the property. (boe.es)

The tax implications should therefore be examined on a case-by-case basis.

What Landlords in Mallorca Should Check Now

The following points are particularly relevant for landlords:

• Term and next expiration date of existing lease agreements

• New notice periods of up to six months

• Possible compensation in the event of non-renewal

• Rental models used and their actual rationale

• Room rentals and their total rent

• Planned rent increases

• Provisions regarding brokerage and contract costs

• Internal procedures for reporting repairs

• Possible municipal IBI regulations regarding vacancies

Especially for leases ending in the coming months, the new legal situation may result in significantly longer commitment periods.

What tenants should know

Among other things, the new rules grant tenants stronger rights regarding lease renewals, additional protection against short-term rent increases, and shorter response times for major repairs. Anyone who has signed a fixed-term lease or rented a room should carefully check whether the stated reason for the fixed term actually exists and is documented. In the case of upcoming lease expirations, it will also be crucial in the future to determine whether the new renewal rules apply and which deadlines have been met.

Not yet definitively approved by Parliament

Despite its publication in the BOE, the legislative process has not yet been fully completed.

Both Real Decreto-ley must be approved by the Diputación Permanente. Real Decreto-ley 29/2026 is generally set to take effect on October 8, 2026; while Real Decreto-ley 28/2026 is scheduled to take effect on November 15, 2026. (boe.es)

For existing and new lease agreements, it is therefore crucial to determine which decree applies to which agreement and from what date.

Sources: Boletín Oficial del Estado, specifically Royal Decree-Law 28/2026 and Royal Decree-Law 29/2026.