A one-vote result in a caretaker committee has kept Spain’s new housing measures alive. For buyers and owners in Marbella, the detail matters more than the headlines
On Thursday 12th November, Spain’s standing committee of deputies, which acts for Congress while parliament is dissolved, validated a government housing decree by 35 votes to 34. It did so a day after a nationwide strike over housing costs, and with a general election due on 29 November. The vote has been widely reported, and understandably so. But much of the coverage is about politics and tenants, and the question we are asked by buyers is more specific: does it change anything for someone buying or owning a home on the Costa del Sol?
Our short answer is that the effect depends on how you use the property. For buyers purchasing a home for their own use, the direct effect is limited. For those buying to let, whether short term, seasonally or long term, there are points that deserve careful attention.
What has been passed
Real Decreto-ley 29/2026 is a wide-ranging package. The government first approved it on 6 October and it has applied since 8 October, with 30 days for parliament to validate it. That validation is what happened on 12 November. A royal decree-law takes effect immediately and then has to be ratified, which is why the vote mattered. It brings together measures on tenants, landlords, short lets, taxes and the supply of affordable housing.
On tenants and evictions, the decree extends protection from eviction for vulnerable households with no alternative housing until the end of 2030. Where a vulnerable tenant faces eviction for non-payment, the administration has two months to offer a housing solution or settle the debt, and owners can be compensated for the suspension. The protection does not apply where the landlord is a large fund. Tenants whose leases would end before 31 December 2028 can ask for an extra two years on the same terms, and after six months a tenant can leave with 30 days’ notice and without paying compensation.
On rents, annual increases on existing long-term leases are capped at 2 per cent until the end of 2027, and a rent already above the official reference index cannot be updated at all. Seasonal lettings must show a genuine temporary reason, run for more than 31 days and generally cannot exceed 12 months, otherwise they are treated as ordinary residential leases. For room rentals, the combined rent for the rooms cannot exceed what the whole home would fetch.
On tax and incentives, landlords who lower their rents can receive income tax reductions of up to 100 per cent, and tenants with a taxable base below €33,007.20 a year can claim a 10 per cent deduction. Stays of up to 30 nights in tourist accommodation, previously exempt, will now carry 10 per cent VAT, and councils in stressed housing markets may add surcharges to property tax (IBI) on empty and tourist-use homes. The tax treatment of Socimis, Spain’s listed property companies, has also been reorganised to steer investment towards affordable housing.
On supply and buying, until the end of 2030 certain entities and large holders are restricted from buying homes below 70 per cent of their appraised value, with exceptions for affordable and social uses. A new ICO-backed scheme, “Tu Casa”, offers interest-free financing for first-time buyers of up to 20 per cent of the home’s value, capped at €50,000 and repayable over ten years. The decree also defines affordable housing in law, as a price not exceeding 30 per cent of a municipality’s median household income, and reduces VAT on public and protected housing to 4 per cent.
What has been rejected
The second decree, Real Decreto-ley 28/2026, was the more contentious of the two, and it did not survive. The committee rejected it by 35 votes to 34, with the Basque party PNV, which backed the first decree, voting against. It had been published on 7 October and was due to take effect on 15 November. It will now not take effect.
Its central measure was automatic renewal of rental contracts. After the initial term, leases would have renewed automatically for five-year periods, or seven years where the landlord is a company, unless there was a justified reason not to. Owners could have recovered the property only in specific cases, such as a proven need for their own or a close relative’s main home, and would have had to give six months’ notice, with tenants giving two months. An owner ending a lease without a justified cause would have owed the tenant compensation, the greater of 12 months’ rent, based on the top of the official reference range, or one month’s rent for each year of residence.
The government has reintroduced near-identical texts before, so the rejection may not end the debate, and the opposition has said it would repeal the approved decree if it wins the election. For now, what stands is the approved decree and not these tenancy-renewal rules.
The parts that touch the property market
Of everything above, three elements matter to investors and owners. The first is the limit on certain entities and large holders buying below 70 per cent of appraised value. This is aimed at funds buying distressed or occupied property at a discount, not at individuals purchasing a home, whether to live in, use or let.
The second is the new VAT on short stays. The third is the option for municipalities in stressed housing markets to apply property tax surcharges on empty and tourist-use homes. Whether this applies in any given town depends on whether it is designated in this way, and that is a point to check with your lawyer rather than assume. The remaining measures, including the first-time buyer financing and landlord incentives, address Spain’s mainstream housing problem rather than a market where the typical purchase starts above €500,000.
What it means for Marbella owners and investors
Marbella buyers have different aims. Some are buying a home for their own use, some a base for part of the year, and many are buying to let as an investment, whether through holiday letting, seasonal lets or longer tenancies. The decree touches each of these differently, so it is worth separating them.
For owner-occupiers and second-home buyers, the direct impact is limited. The decree is aimed at tenants, large holders and the letting market, and the supply of good property is constrained by land, planning and location, which this decree does not change.
For investors who let, the detail matters more. The 2 per cent cap on annual rent increases applies to existing long-term leases until the end of 2027. Seasonal lets must show a genuine temporary reason and generally cannot exceed 12 months, otherwise a contract can be treated as a standard residential lease. Short stays of up to 30 nights are reported to carry 10 per cent VAT, which changes the numbers for holiday-let owners. And councils in stressed markets may add property tax surcharges on tourist-use and empty homes. None of this makes letting a property in Marbella unviable, but the strategy and the yield assumptions should be reviewed against the new rules, and in some cases the structure and use of the property may need rethinking with your adviser.
Many investors in this market also buy through companies or hold several properties, so the limits on certain entities and large holders are worth checking too. As reported, they concern purchases below 70 per cent of appraised value, but your lawyer should confirm how they apply to your structure.
The decree sits inside an election campaign. The government called the vote for 29 November after Congress rejected an earlier version of these measures. The opposition leader, Alberto Núñez Feijóo, whose Popular Party leads in opinion polls, has said he would repeal the decrees if he becomes prime minister, arguing that they reduce supply and push up prices. How long these measures last may therefore depend on the result.
Spanish housing policy has been moving for some time, and it will continue to move whichever party governs. What matters for a buyer is a clear view of their own plans, whether the property is a home, a base for part of the year or an investment, and legal and tax advice that matches them.
That is why we always advise speaking to a Spanish lawyer and tax adviser before committing. We work alongside partners who do exactly this, and we would be glad to introduce them.
Five questions we are being asked
1. Does the decree place any restrictions on international buyers?
As we read it, no. The restrictions reported concern certain entities and large holders buying below 70 per cent of appraised value, not individuals buying a home. The decree is a rental and tax measure rather than a restriction on foreign buyers. As it is a long and technical text, your lawyer should confirm how it applies to your purchase.
2. Is the decree likely to influence property prices in Marbella?
We do not expect a direct effect. The measures are aimed at rents, evictions and the behaviour of large buyers, and the Marbella market is driven by limited supply and international demand. Policy uncertainty can influence sentiment, but we would not forecast prices from this decree.
3. How does the decree apply to owners who let their property?
A few points are worth checking. Short stays of up to 30 nights are reported to carry 10 per cent VAT. Seasonal lets need a genuine temporary reason and generally cannot exceed 12 months. And long-term tenancies are subject to the 2 per cent cap on annual rent increases until the end of 2027. Speak to a lawyer and tax adviser about your own arrangement.
4. What happens to the decree after the general election on 29 November?
That depends on the result. The Popular Party, which leads in opinion polls, has said it would repeal the decrees if it takes power. A new parliament could also amend them. Until the result is known, how long these measures last is open.
5. Does the decree change anything on visas or residency?
No. It is a housing and tax measure, not an immigration one. Spain’s Golden Visa closed in April 2025, so buying a property does not in itself lead to residency. Anyone planning to move should take immigration and tax advice before buying.