Spain implements new housing decree targeting tourist rentals and investors

housing decree rental market regulation tourist apartments real estate investment tax reforms

The Spanish government has approved a comprehensive housing decree (Real Decreto-ley 26/2026) aimed at curbing speculation and increasing affordable housing. The regulation introduces significant fiscal changes for various sectors.

For tourist accommodations, a 10% VAT will apply to rentals of up to 30 nights starting December 1, 2026. Additionally, owners of multiple tourist properties may face an IBI (property tax) surcharge of up to 150%.

To target institutional investors and large landlords, the decree prohibits entities from purchasing properties at less than 70% of their market appraisal value until December 31, 2028. This measure is intended to prevent the acquisition of distressed assets by investment funds. Large landlords are defined as those owning more than ten properties, though this threshold can be lowered to five in stressed market areas.

To incentivize residential rentals, the decree offers significant income tax (IRPF) reductions for owners. These reductions can reach up to 100% for those who sign new contracts and reduce rents by more than 5%, with specific tiered benefits for properties in stressed zones or those rented to younger tenants.

Entities

Government of Spain · Isabel Rodríguez · Ministry of Housing · Official State Gazette · Property Registry

Claims

What the coverage asserts, and how many sources carry each claim.

[● 3 SOURCES] A large holder is defined as an owner of more than ten properties, though autonomous communities in stressed areas can lower this threshold to five properties. www.diariodemallorca.es · www.levante-emv.com
[● 3 SOURCES] The new royal decree-law targets large property owners and institutional investors. www.diariodemallorca.es · www.levante-emv.com
[● 3 SOURCES] Until December 31, 2028, entities acquiring real estate are limited from purchasing homes at less than 70% of their market appraisal value. www.diariodemallorca.es · www.levante-emv.com
[● 3 SOURCES] Large holder status must be verified through a certification from the Property Registry. www.diariodemallorca.es · www.levante-emv.com
[● 3 SOURCES] The decree introduces new fiscal measures targeting SOCIMIs (Real Estate Investment Trusts). www.diariodemallorca.es · www.levante-emv.com