Spain’s junior coalition partner has unveiled a sweeping plan to freeze rents, restrict tourist accommodation, and tax landlords, in the latest push to tighten control over the housing market.
The proposal comes from Sumar, the hard-left party that shares power with the Socialists (PSOE) in Spain’s coalition government and holds several ministerial posts. Far from being an outside protest group, Sumar is part of the governing bloc — and its latest initiative seeks to move housing policy sharply to the left.
Rent freeze and long-term extensions
Under the draft Royal Decree Law presented by Social Rights Minister Pablo Bustinduy, all rental contracts would be frozen at their current price and automatically extended for three years, including those already in force. In officially designated “strained” areas, leases could be extended by two additional years, creating de facto ten-year tenancies. The rent cap would apply even if ownership of the property changes hands.
New or renewed leases would also have to maintain the same rent level as the previous contract until the government finishes defining stressed areas, introducing a nationwide rent freeze with immediate effect.
Seasonal and room rentals under scrutiny
To curb what the party calls “fraudulent practices,” short-term contracts of under 30 days would automatically be classified as tourist rentals and taxed at 21% VAT. The reform would also extend tenant protections and rent limits to room rentals and so-called “seasonal” lets, which are often used to bypass rent controls.
Taxing owners and restricting speculative purchases
The draft decree proposes a 5% annual tax on real-estate holdings for individuals or companies that own four or more homes, expanding the existing wealth tax on large fortunes. Corporate landlords offering affordable rents, meanwhile, could benefit from a 40% tax reduction.
It would also require that any new home purchased for rental be offered as “affordable housing,” subject to rent limits where applicable — a move that could further restrict the investment market.
Tougher rules for tourist accommodation
The measures would make all short-term rentals of 30 days or less legally “tourist” properties, obliging owners to register them and subjecting them to a tougher sanctioning regime. The aim, according to Bustinduy, is to stamp out the misuse of temporary leases to evade tourist flat regulations.
“These are effective, viable and immediately applicable measures to rescue a housing market hijacked by economic actors profiting at the expense of Spanish families,” said Bustinduy at the press conference.
The proposal highlights growing tension within the coalition over how far the state should intervene in housing — with Sumar pressing for aggressive market controls, while critics warn of yet another blow to private landlords and investment in rental housing.
