Spain has moved to tighten its housing market regulations, introducing new restrictions on property purchases, rent increases and holiday rentals as public anger over housing affordability puts pressure on the country’s government.
The measures were approved by the country’s interim parliamentary body following a nationwide general strike and large demonstrations over rising housing costs.
The changes highlight an increasingly contentious question facing housing markets internationally: whether tighter regulation can improve affordability without discouraging investment or reducing rental supply.
The package passed by just one vote, 35 to 34, and includes measures targeting corporate property purchases, protections for vulnerable tenants and additional taxation on short-term accommodation.
However, a separate proposal that would have significantly strengthened tenants’ rights to renew leases was rejected, with opponents warning it could encourage landlords to withdraw properties from the rental market.
New restrictions on investors and holiday rentals
Among the measures approved is a restriction designed to prevent companies operating in the property market from purchasing homes for less than 70 per cent of their value.
The government says the measure is intended to discourage speculative purchases, particularly where properties are acquired at substantial discounts and subsequently resold at higher prices.
The legislation also prevents rent increases on properties where the existing rent already exceeds the government’s reference price for the relevant neighbourhood.
Short-term accommodation operators will face additional costs, with a 10 per cent tax introduced on apartments rented to tourists, including properties advertised through online booking platforms.
The measure reflects growing concern in Spain that the expansion of tourist accommodation is reducing the number of properties available to permanent residents.
The package also includes tax incentives intended to encourage residential leasing and government-backed loans to help eligible buyers meet the deposit requirements for purchasing a home.
The combination of rental restrictions and tax changes could influence investor decisions, particularly in markets where holiday accommodation competes with long-term residential rentals.
Landlord protections divide parliament
One of the most significant developments was the rejection of a separate decree that would have allowed residential tenants to automatically renew their leases.
Under that proposal, landlords seeking to terminate a tenancy would have been required to compensate tenants with the equivalent of 12 months’ rent.
Supporters viewed the measure as a way to improve housing security, while opponents argued it could discourage property owners from offering their homes for rent.
The proposal was defeated 35 votes to 34, after a centre-right Basque party supported the broader housing package but opposed the lease renewal provisions.
The approved legislation does extend protections against eviction for financially or socially vulnerable tenants until 2030, where regional authorities are unable to provide alternative accommodation.
The split parliamentary outcome illustrates the difficulty governments face in balancing stronger tenant protections with concerns about the availability of rental housing.
Election could determine the future of the reforms
The changes come amid considerable political uncertainty, with Spain heading to an early general election on 29 November.
Prime Minister Pedro Sánchez called the election after his government’s earlier attempts to secure parliamentary support for housing reforms were defeated.
The latest measures were approved by an interim parliamentary body comprising 69 members, rather than the country’s usual 350-member lower house.
The conservative Popular Party, which is leading in opinion polls, has pledged to repeal the measures if it wins government.
The opposition has argued that increasing restrictions on landlords and property investors risks reducing housing supply and putting further upward pressure on prices.
Instead, the party has advocated increasing housing construction, including a commitment to deliver one million homes, alongside lower taxes and fewer development restrictions.
The debate is likely to resonate beyond Spain, with governments in several countries facing similar pressure to improve rental affordability while maintaining sufficient incentives for private investment.
Original sources: Associated Press · Reuters · Spanish Government