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October 5, 2026

Spain's New Housing Regulations Voted Down – What It Means for Homeowners


At the end of September, the Spanish government presented a comprehensive package of new housing regulations through Real Decreto-ley 26/2026. The proposals addressed, among other things, temporary rentals, tourist rentals, VAT, and the possibility for municipalities to charge higher property taxes on tourist properties.

The regulations were published on September 30 and came into effect on October 1. However, on October 2, the Congreso de los Diputados decided not to approve the decree. Thus, Real Decreto-ley 26/2026 was repealed, and the legislative changes it contained lost their effect.


In Short – What Does It Mean for You as a Homeowner?

For those who own a property in Spain, the decision practically means that nothing changes right now compared to the rules that applied before October 1.

This means, among other things, that:

  • the new rules for temporary rentals are not implemented,
  • the proposed 31-day limit for tourist rentals does not apply,
  • the planned 10 percent VAT for shorter tourist rentals is not introduced on December 1,
  • municipalities do not get the new opportunity to raise IBI according to the rules in this decree,
  • and the previous rules continue to apply until any new legislation is decided.

There is therefore nothing you as a homeowner need to change due to Real Decreto-ley 26/2026 at the moment. However, parts of the regulations may return later, either in a new decree or through separate legislative proposals.

Formally, it was not an ordinary legislative proposal that was voted down. A Real Decreto-ley is a provisional law that the government can introduce in extraordinary and urgent needs. It takes effect immediately but must be approved by the Congreso within 30 days to continue to apply.

What Changes Were Lost?

The legislative package was extensive, but for foreign homeowners, some parts were particularly relevant:

  • Temporary rentals would be regulated much more clearly. The tenant's need for temporary accommodation would have a real and verifiable reason. The agreement would normally be longer than 31 days but no more than twelve months. If the time limit could not be justified, or if more than two temporary agreements followed each other between the same parties for the same property, the agreement could instead be treated as permanent housing rental. These changes now do not apply.
  • Tourist rentals would have a clearer 31-day limit. The decree stipulated that the type of tourist rental outside the regular rental law could not exceed 31 days per lease. This change also fell when the decree was repealed.
  • Short tourist rentals would be subject to 10 percent VAT. From December 1, 2026, the rental of furnished properties for up to 30 nights would be subject to 10 percent IVA, even when the owner does not offer hotel-like services. An exception was made when the rental took place in the owner's own permanent residence. Since the entire decree was repealed, this change will not take effect on December 1.
  • Municipalities in so-called pressured housing areas would have the opportunity to raise IBI for tourist properties. The proposal allowed for an addition of up to 50 percent, up to 100 percent for owners with at least two such properties, and up to 150 percent for owners with four or more. This opportunity also disappeared with the decree.

The changes therefore concerned significantly more than just the rules for temporary rental contracts.

What About VAT on Tourist Rentals Now?

Here it is important to distinguish between what has been politically discussed and what was actually in Real Decreto-ley 26/2026. The concrete change adopted by the government was 10 percent VAT, not 21 percent, on the rental of furnished properties for up to 30 nights.

That change is now removed.

Thus, the previous main rule still applies: private tourist rentals where the owner only rents out the property and does not offer hotel-like services are normally exempt from IVA. However, if the owner offers services typical of hotel operations, the rental may be subject to 10 percent VAT. Cleaning and linen changes only at check-in and check-out are not normally considered such hotel services.

Can the Regulations Return?

Yes. The repeal of Real Decreto-ley 26/2026 means that this particular law is gone, but it does not prevent the government or parliament from returning with the same or similar regulations.

There are mainly two ways.

  • The government can propose a new Real Decreto-ley. There is no specific waiting period after a previous decree has fallen. However, the government must again be able to justify that there is an extraordinary and urgent need. A new decree can take effect very quickly after a decision and publication in BOE, but it must also be approved by the Congreso within a maximum of 30 days.
  • The alternative is for the government to propose a regular bill – Proyecto de Ley. The issue is then processed through the normal parliamentary process with the possibility of amendments and consideration in both the Congreso and the Senado. There is no set total time limit for such a procedure, and the process can therefore take significantly longer.

Therefore, it cannot be said that the regulations can return at the earliest after, for example, three or six months. Through a new Real Decreto-ley, changes could in principle return quickly. Through a regular legislative process, it is rather a process that can last for several months, depending on parliamentary support and what changes are made.

VAT Can Be Addressed Separately

The VAT issue does not need to return together with the entire housing package.

The proposal for 10 percent IVA on short tourist rentals was implemented through an amendment to the existing Spanish VAT law, Ley 37/1992 del Impuesto sobre el Valor Añadido. Parliament can therefore amend just the VAT law through a separate bill, or the government can attempt to make a similar change through a new Real Decreto-ley if the conditions for such urgent legislation are met.

There are also already other legislative processes affecting the Spanish VAT law. This means that the VAT issue can be addressed separately without the entire Real Decreto-ley 26/2026 needing to return.

What Should Homeowners Base Their Actions On Now?

The starting point is therefore relatively simple.

Real Decreto-ley 26/2026 no longer applies. The new rules for temporary rentals, 10 percent VAT on short tourist rentals, and the possibility of special IBI surcharges for tourist properties introduced by the decree have been removed.

We are monitoring developments and continuously evaluating what changes may come in the future. Based on the current regulatory framework, the situation is unchanged for homeowners – it is the same rules that applied before Real Decreto-ley 26/2026 was introduced.