Spain’s left-leaning coalition government plans to further tighten rental regulations and clamp down on medium-term leases in an effort to curb rising rents and prevent abusive pricing, Prime Minister Pedro Sánchez said on Monday.
He said that the measures will be introduced through a decree expected to be approved in the coming weeks.
Spain, one of the most popular tourist destinations globally, is grappling with an acute housing shortage that has been worsened by the surge in tourism. In recent years, the pressure on the housing market has sparked large-scale protests over the escalating cost of renting. ALSO READ: Spanish government to limit short-term rentals and tourist flats to address housing crisis.
‘We will continue intervening in the rental market,’ Sánchez said during an event marking the launch of construction at Spain’s largest public housing development. ALSO READ: Barcelona wants to revoke all city’s 10,101 tourist apartment licences by Nov 2028.
The long-awaited Campamento project will redevelop a former military site in western Madrid into 10,700 publicly owned affordable housing units. ALSO READ: Spain to spend €1.3 billion on ‘industrial construction of social housing’.
According to Sánchez, the forthcoming decree will offer landlords a 100% personal income tax rebate if they renew rental contracts without increasing rents.
The new rules will also cap the total rent charged for individual rooms so that it does not exceed the price of renting an entire apartment, aiming to curb excessive room-by-room leasing. Rent controls will additionally be applied in areas officially designated as experiencing high housing pressure.
The government also plans to tighten the requirements for seasonal rental contracts and introduce penalties where such contracts are used in place of standard long-term leases, Sánchez said.
Homeowners’ associations and housing experts argue that existing regulations currently incentivise short-term rentals at the expense of longer-term tenancies.
While the central government can introduce legislation, most housing policies must be implemented by Spain’s regional authorities, many of which are governed by opposition parties that may be unwilling to enforce the measures.
Nonetheless, affluent northeastern Catalonia has already introduced caps on seasonal and room rents, and several cities — including Madrid — have taken steps to limit tourist apartment rentals. ALSO READ: Catalan government to offer loans for young people to cover down payments on first homes.
Average rents in Spain have doubled over the past ten years, increasing far more rapidly than wages.
The Bank of Spain estimates the country faces a shortfall of around 500,000 homes, while official figures show that only about 120,000 new properties are built each year — roughly one-sixth of the annual construction levels seen before the 2008 financial crisis.
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Pedro Sánchez ha anunciado nuevo real decreto que bonificará el 100% del IRPF a los caseros que no suban el alquiler y que limitará el temporal y por habitaciones. https://t.co/sIQI9ki5aY https://t.co/WaltGMhzfU
— RTVE Noticias (@rtvenoticias) January 1
🏗 Hoy se han iniciado los trabajos de demolición previos a la construcción del Nuevo Barrio Campamento:
— Ministerio de Vivienda y Agenda Urbana (@viviendagob) January 12, 2026
🔸️Contará con 10.700 viviendas públicas y asequibles.
🔸️Será mixto, con viviendas tanto de alquiler como de compra.
🔸️Situado a 8,5 kilómetros del centro de Madrid. pic.twitter.com/Wp9Rc3vwfP
Vamos a aprobar un real decreto-ley con tres medidas urgentes y contundentes para facilitar el acceso al alquiler:
— Pedro Sánchez (@sanchezcastejon) January 12, 2026
◾️Bonificando a aquellos propietarios que renueven sus contratos sin subirle el precio a sus inquilinos.
◾️Limitando los contratos de temporada para poner fin a su… pic.twitter.com/CLBotR2GuF
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