As we move further into the year 2025, the real estate landscape in Spain continues to evolve, particularly regarding property rental laws. The Spanish government has implemented significant changes to the rental regulations, aiming to create a more balanced and sustainable rental market for both landlords and tenants

Key Changes in the Spanish Property Rental Law for 2025

Extended Rental Contracts

One of the most notable changes in the rental law for 2025 is the extension of rental contract durations. Previously, rental contracts in Spain typically had a maximum duration of three years. However, the new legislation now allows for longer-term contracts, providing increased stability for tenants and landlords alike. Landlords can now offer rental agreements of up to five years, with the option for tenants to renew for an additional five-year period.

Rent Control Measures

In response to rising rental prices in major urban areas, the Spanish government has introduced stricter rent control measures for 2025. Rental prices are now capped at a maximum annual increase, tied to the Consumer Price Index (CPI) to prevent landlords from imposing excessive rent hikes. This regulation aims to protect tenants from sudden and unjustified rent spikes while balancing the interests of property owners.

Enhanced Tenant Protections

The new rental law prioritises tenant rights and protections, affirming tenants’ rights to a safe and habitable living environment. Landlords are required to maintain properties in good condition, addressing maintenance issues promptly and ensuring compliance with health and safety standards. Additionally, tenants now have clearer legal recourse in cases of landlord negligence or breaches of contract.

Regulation of Short-term Rentals

With the growing popularity of short-term rental platforms, such as Airbnb, the 2025 rental law includes provisions to regulate the short-term rental market. Property owners renting out properties for short stays are required to obtain specific licenses and adhere to zoning regulations to prevent the excessive commercialization of residential units and safeguard the supply of long-term rental properties.

Implications for Landlords and Tenants

Landlords

The updated rental law in 2025 imposes greater responsibilities on landlords to maintain properties, comply with rent control measures, and adhere to contractual terms. Landlords will need to adapt to longer rental contract durations and navigate the regulatory framework to ensure compliance with the new legislation.

Tenants

Tenants can benefit from enhanced protections and stability offered by the revised rental law. Extended rental contract options, rent control measures, and improved maintenance standards contribute to a more secure and predictable rental experience for tenants. Tenants also have increased legal safeguards against unfair practices and substandard living conditions.

The changes to the Spanish property rental law in 2025 reflect a concerted effort to promote a fair and harmonious rental market environment. By implementing measures to address rental price volatility, enhance tenant protections, and regulate short-term rentals, the Spanish government aims to create a more sustainable and equitable rental sector for both landlords and tenants. As stakeholders navigate these new regulations, it is essential to understand and comply with the updated legal framework to foster transparent and mutually beneficial rental relationships in Spain’s evolving real estate landscape.