Spain implements new housing regulations and loan programs

The Spanish government has introduced several measures to regulate the housing market and facilitate access to homeownership. Under Royal Decree-law 29/2026, new restrictions aim to prevent speculative real estate transactions by prohibiting the sale of residential properties at less than 70% of their market value. This regulation requires official appraisals from entities approved by the Bank of Spain, a move that has reportedly caused delays in notary offices.

Regarding rental markets, the new law freezes rent increases for tenants whose current payments already exceed the official price reference index. For those paying below the index, annual increases are capped at 2% unless otherwise negotiated. Additionally, municipalities like Cangas are seeking to be designated as stressed housing zones, which would allow for stricter rent controls and access to specific ministry funding.

To assist first-time buyers, the government has announced an interest-free loan program through the Official Credit Institute (ICO). These loans can cover up to 20% of a property's purchase price, with a maximum limit of 50,000 euros. Beneficiaries must secure a mortgage to access the funds, and the loans must be repaid in full.