Royal Decree-Law 8/2026, of 20 March, which entered into force on 22 March 2026 following its publication in the Official State Gazette (BOE), introduces a series of exceptional measures in the field of urban leases with the aim of “allegedly” mitigating the economic and social impact arising from the war in Iran, particularly in the residential rental market.
One of the main developments is the possibility of extending certain lease agreements. Specifically, those agreements whose mandatory or tacit extension period expires between 22 March 2026 and 31 December 2027 may be extended, at the tenant’s request, for annual periods of up to a maximum of two additional years. During this period, the same terms and conditions set out in the original agreement shall remain in force.
As a general rule, the landlord is required to accept this extension. However, the regulation provides for certain exceptions: (i) where different terms or conditions have been agreed between the parties; (ii) where a new agreement or a novation is formalised under different conditions, even if the rent is lower; or (iii) where the landlord needs the property for personal use or for use by family members under the legally established terms.
In practice, this measure allows tenants whose agreements expire before 31 December 2027 to remain in the property if they request such extension, except in the aforementioned cases. Furthermore, this extension is not compatible with other extensions provided for under current legislation, which shall take precedence where applicable.
Another key measure is the limitation on the annual rent update. Until 31 December 2027, rent increases are capped at 2% in all cases for large property holders. In other cases, the parties may agree on the increase; however, in the absence of agreement, the aforementioned 2% cap shall also apply.
Finally, it should be noted that, as with any Royal Decree-Law, this regulation must be ratified by Parliament within 30 days. If it is not ratified, it will be repealed; however, for reasons of legal certainty, legal situations arising during its validity —such as extensions already granted or rent updates applied— shall remain valid.
