Royal Decree-Law 27/2026 amends Article 10 of the Urban Leasing Act to increase the stability of residential lease agreements. After 5 years of duration (or 7 if the landlord is a legal entity), if neither party notifies their intent not to renew within the legal notice periods, the contract will be mandatory extended for successive periods of 5 or 7 years respectively (art. 1). If the landlord notifies non-renewal, they must compensate the tenant with at least 12 monthly rent payments for a similar property (art. 1).
For tenants, the regulation ensures much longer and more predictable tenure, making evictions due to contract expiration after the initial period more difficult (Art. 1). For landlords (individuals or legal entities), the cost of recovering the property increases: they must provide 6 months' notice or pay a minimum compensation of 12 monthly instalments, which cannot be less than one monthly instalment for each year of residence (Art. 1).
The corporate team reviews your specific situation.