The impact of the new housing law in Spain: How does it affect buyers and owners?

Impact of Spain’s New Housing Law: Key Changes for Owners and Tenants

Spain’s new Housing Law, approved in 2025, introduces significant changes that affect both property owners and tenants. Below, we detail the main modifications and their impact on the real estate market.

Price Control in High-Tension Areas

The law establishes limits on rent increases in designated “high-tension areas.” In these areas, annual rent hikes cannot exceed 3% in 2024, instead of being linked to the Consumer Price Index (CPI). Additionally, a new price reference index will be created to guide future rent adjustments. (Wikipedia)

Redefinition of “Large Landlords”

The law redefines “large landlords” in high-tension areas. Property owners who own more than five urban residential properties are now classified as large landlords and subject to additional regulations. (Wikipedia)

Tax Benefits for Landlords

To encourage long-term rentals, the law includes tax deductions in the Personal Income Tax (IRPF) for landlords who meet certain conditions. These benefits apply to those renting to young tenants (18-35 years old) or offering reduced rent prices in high-tension areas. (El Correo Gallego)

Tenant Protections in Vulnerability Cases

The law strengthens protections for tenants in financial or social vulnerability. In eviction cases, landlords classified as large landlords must go through a mandatory mediation process before proceeding with eviction. (Wikipedia)

Landlords to Cover Rental Management Fees

Starting in 2025, property owners will be required to pay rental agency fees, including management and contract formalization costs. (Wikipedia)

Higher Property Tax (IBI) for Vacant Homes

The law allows local councils to impose a tax surcharge on vacant homes. Properties left unoccupied for over two years without justification may face up to a 150% increase in the Property Tax (IBI). (Wikipedia)

Regulation of Short-Term Rentals

Regional and local governments now have more control over tourist rental properties, aiming to balance the rental market and ensure residents have better access to housing. (La Moncloa)

Promotion of Social Housing

The law includes measures to increase the availability of affordable housing, aiming to prevent rental market imbalances and support young people and vulnerable groups. (La Moncloa)

These changes seek to stabilize Spain’s housing market, protect tenants, and promote affordable housing, while also defining clearer responsibilities for landlords.