The Spanish government passed two decrees on Tuesday that change the rules for landlords who want to take back their properties when a lease ends.
The Council of Ministers, Spain's cabinet, approved the measures. The legislation removes the right of property owners to unilaterally decide whether to keep a tenant upon contract expiry.
Under the previous rules, landlords could recover a flat at the end of a tenancy to sell it, sign a new lease at a different rent, or use it for tourist and seasonal rentals.
The new laws follow the eviction of a tenant named Maricarmen, who was forced to leave her home when her lease expired despite paying her rent. Her case became a central focus in the national debate on housing, giving the new measures the unofficial name of the Maricarmen decree.
Mandatory lease extensions
The first decree creates a mandatory two year extension for rental contracts that expire before December 31, 2028.
Tenants must request the extension for it to apply. However, the government stated that the extension is obligatory, meaning landlords cannot refuse the request. Rent increases during this two year period will be capped at two percent.
This means property owners whose rental contracts expire in the coming months will have to wait at least another two years to recover their homes if their tenants choose to use the measure.
The exact details will remain unclear until the text is published in the Official State Gazette, the government publication for new laws. Landlords are waiting to see if there will be exceptions for owners who need to move into the property themselves, what rent will apply during the extension, and whether tenants must have a perfect payment record to qualify.
Automatic contract renewal
The second decree introduces the automatic renewal of rental contracts. A landlord who does not want to renew a lease will have to justify their reason. If they do not provide a valid reason, they will have to compensate the tenant.
Housing Minister Isabel Rodriguez said the text takes its inspiration from countries that use indefinite rental contracts. She noted that the decree includes safeguards, but the government has not yet provided the details.
Automatic renewal is the primary demand of the Tenants Union, a Spanish advocacy group. The union has campaigned for renters to be allowed to stay in their homes as long as they pay their rent and there is no justified reason to end the contract.
Parliamentary votes
The second decree faces a more difficult path to approval. Rodriguez admitted that the government had not been able to spend enough time working on the measure with other parliamentary groups.
Both decrees will face a vote on Friday in an extraordinary plenary session of Congress, the lower house of the Spanish parliament.
The ruling Socialist Workers' Party needs the votes of the Catalan Junts party and the Basque Nationalist Party to pass the measures. Under Spanish law, a royal decree must be validated by Congress within 30 days or the legislation falls and its measures cease to apply.
