The Spanish government has barred landlords from recovering properties from financially vulnerable tenants who fail to pay rent until their lease contracts expire.
Under the new rules, public authorities will assume responsibility for paying rent while the tenant remains in a position of economic hardship.
The measure was included in a royal decree on the social function of housing and anti-speculation measures passed on Monday by the cabinet and published on Tuesday in the Official State Gazette.
The executive cabinet, known as the Council of Ministers, acts as Spain's main decision-making body, while publication in the Official State Gazette makes decrees legally binding across the country.
The decree also extends purchasing restrictions previously applied to vulture funds to landlords owning more than ten properties, keeping those limitations in place until the end of 2030.
Eviction delays and state intervention
Although the lower house of the Spanish parliament rejected a similar proposal on Friday, the new decree introduces structural changes to eviction procedures.
The Congress of Deputies serves as Spain's legislative assembly, where decree-laws passed by the executive branch must undergo parliamentary review.
The regulation establishes an extraordinary enervation mechanism in eviction cases triggered by unpaid rent when tenants are classified as economically vulnerable.
Enervation is a legal procedure in Spanish civil law that allows a tenant facing eviction to stop court proceedings and maintain their lease contract by paying off outstanding debts.
Under the updated framework, competent regional authorities have a maximum of two months to provide alternative housing or pay the property owner directly.
Public officials can also deposit the claimed amounts, accrued arrears, and court costs into judicial accounts to settle the debt during that window.
All eviction proceedings and court-ordered property repossessions are suspended while the two-month administrative deadline remains active.
State liability and landlord reactions
If two months pass without alternative housing being provided or full payment being made, landlords still cannot repossess their properties.
In those situations, the public administration automatically subrogates into the legal position of the debtor, blocking eviction and maintaining the contract until it expires.
The Association of Rental Housing Owners, known as Asval, said landlords can secure court orders but still fail to regain their properties because of state obligations.
Asval functions as Spain's primary industry body representing both small private landlords and institutional real estate investors nationwide.
Asval noted that state compensation is capped at unpaid rent, utility bills, and legal expenses, while excluding hypothetical lost profits and moral damages.
The association lamented that the rules fail to cover full damages under standard civil liability laws and rely on funding from autonomous community budgets.
Spain's 17 autonomous communities hold primary jurisdiction over regional social welfare spending and public housing administration within their borders.
Asval added that only owners with two or fewer properties receive protection against eviction suspensions, leaving other small landlords exposed.
Rent caps and mandatory lease extensions
The decree-law introduces further market restrictions, allowing tenants in primary residences to request an extraordinary contract extension of up to two years.
Limits on annual rent updates have also been established to remain in effect until December 31, 2027.
Properties with rents exceeding limits set by Spain's reference index system cannot receive any rent increase during annual updates.
Spain's reference index system was created to track local rental rates and regulate lease pricing in designated high-demand housing areas.
For all other contracts, annual rent increases cannot exceed two percent unless the landlord and tenant reach a separate agreement.
The mandatory extension applies to all property owners regardless of wealth, unless they need the home for personal use or offer a five percent rent cut on a new contract.
Property owners receive no state compensation for mandatory extensions while ongoing expenses such as municipal property taxes, community fees, and maintenance costs remain unfrozen.
Municipal property taxes in Spain, known as the Impuesto sobre Bienes Inmuebles, are levied annually by local town halls on real estate owners regardless of rental income.
