Spain’s interim Congress Standing Committee (Diputación Permanente) voted on 12 November to validate Royal Decree-Law 29/2026, a sweeping package of housing measures aimed at freezing rents in stressed markets, curbing large-scale evictions and taxing short-term tourist lets. The decree enters into force immediately and will apply until at least 31 December 2028—unless the incoming government overturns it after the 29 November general election. For foreign companies relocating staff to Madrid, Barcelona, Valencia and the Balearic Islands, the decree’s rent-freeze clauses are a double-edged sword. On one hand they cap annual increases to Spain’s updated Housing Competitiveness Index (currently 2.5 %), helping employers budget accommodation allowances. On the other hand, individual landlords facing new tax surcharges on vacant properties are already withdrawing long-term rentals from the market, shrinking the supply of family-sized apartments in city centres. Several relocation management companies contacted by Spainguru.es say they are advising incoming assignees to accept corporate leases in outer districts such as Móstoles or Badalona or to consider serviced apartments, which are exempt from the freeze for stays under 11 months. The decree also tightens regulations on seasonal lets, a popular loophole used by digital-nomad visa holders to avoid 12-month contracts. Owners must now register such properties in a new national database and obtain a municipal fitness certificate every two years. Failure to comply carries fines of up to €90,000, and authorities can revoke a property’s tourist-let licence after two serious breaches. This is expected to raise compliance costs, which landlords will likely pass on to tenants in the form of higher upfront deposits. Multinationals should revisit their Spanish assignment cost projections and build flexibility into housing budgets, particularly for short-term assignees arriving in Q1 2027. Employers that reimburse rent directly should ensure their lease templates reflect the new maximum annual increase clause and that any tax withheld on behalf of non-resident landlords is recalculated under the revised rules. Companies offering lump-sum mobility allowances may need to increase payments for assignees targeting premium districts that are now in even shorter supply. Finally, the political outlook matters: the conservative Partido Popular has pledged to repeal the decree if it forms a government, potentially unleashing another spike in rents next year. Mobility professionals should therefore monitor post-election coalition talks and prepare to renegotiate leases or secure break clauses that protect their assignees regardless of the policy swing.
Source: Associated Press / Spainguru.es
