Mark Stücklin
Property owners hoping to sell homes occupied by tenants face another potential obstacle after Spain’s Parliament approved new rental protections, extending some tenancies and tightening the rules on supposedly temporary lettings.
I’ve been speaking to quite a few property owners recently who are thinking of selling their homes in Spain, only to discover that their tenants could be a serious obstacle to their plans.
In several cases, the owners believe they have temporary rental agreements (alquiler de temporada), often for 11 months, and assume they can recover possession when the contract expires.
Others have ordinary residential tenants whose contracts are approaching expiry and expect to recover vacant possession in time to sell.
Both groups need to take another look at their plans following the latest changes to Spanish rental law.
New rental protections approved by Parliament
The rejected decree would have introduced potentially indefinite rental contracts, with landlords required to compensate tenants who were asked to leave. That law is now off the table.
However, the approved decree introduces significant additional protections for tenants, including:
- Longer contracts: Qualifying tenants whose residential leases expire before the end of 2028 can request extensions of up to two additional years, subject to conditions. In designated stressed housing markets, existing statutory three-year extensions take precedence.
- Eviction restrictions: Protections against eviction for qualifying vulnerable tenants and occupants without alternative accommodation have been extended until the end of 2030, with exceptions including certain smaller private landlords.
- Rent controls: Annual rent increases are generally limited to 2% until the end of 2027, or frozen where the rent already exceeds the applicable reference-price ceiling.
- Temporary rentals: Tighter rules on seasonal and room rentals make it harder to use these arrangements to avoid ordinary residential tenancy protections.
For owners hoping to sell with vacant possession, the implications are serious. Tenants who were expected to leave in 2027 or 2028 might now have the right to remain considerably longer.
An 11-month rental contract isn’t necessarily temporary
This is particularly important for owners who have been renting out their properties under supposedly temporary contracts.
Under Spanish law, what matters is not simply what the contract says, but how the property is actually being used.
If tenants occupy a property as their main home, rather than for a genuinely temporary purpose, they may be entitled to the protections of a long-term residential tenancy.
Calling the agreement a seasonal rental, or limiting it to 11 months, doesn’t automatically change that. Tenants who have been living there permanently may have little difficulty demonstrating that fact in court.
The new rules tighten the requirements for genuine temporary lettings, making this distinction even more important.
An owner who thought they could recover possession after 11 months might discover that the tenants have a legal right to remain for years.
What this means if you’re planning to sell
A property occupied by protected tenants is not impossible to sell. However, selling with tenants in place is a very different proposition from selling with vacant possession.
Your potential buyer pool may shrink, the price may suffer, and the timing of any sale could depend on the tenants’ legal rights or their willingness to negotiate an amicable departure.
There is also political uncertainty. Spain holds a general election on 29 November, and an incoming government could amend or repeal some of these measures. But owners planning to sell cannot sensibly base their strategy on what a future government might do.
The important thing is to establish your real position before making plans. Don’t assume an 11-month contract guarantees vacant possession, or that an ordinary residential tenancy will necessarily end when you expect it to.
And don’t assume putting the property up for sale gives you the right to terminate a tenancy. It doesn’t.
Thinking of selling your property in Spain?
Whether your property is vacant, rented out, or already on the market, Spanish Property Insight can help you assess your options and prepare a realistic selling strategy.
Get in touch to discuss your situation and start with a free personalised market report.
Thinking of selling? Get a free personalised market report
Are you thinking of selling your property in Spain?
The first step is to understand the market you’re selling into. Get an SPI Personalised Market Report with expert insight into local sales, prices, competition and buyer demand, so you can approach your sale with confidence. Fill in this form to find out more.
