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BOE-A-2026-20385 ·1 October 2026 ·Royal Decree-Law critical
Corporate

Landlords: 6 months notice to non-renew lease or compensation of 12 monthly rent payments to the tenant

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).

In 3 key points

  1. Minimum compensation of 12 monthly instalments of rent for a similar property if the landlord does not renew (Art. 1) (art. 1)
  2. Mandatory extension of 5 years (individuals) or 7 years (legal entities) following the initial period (Art. 1) (art. 1)
  3. 6 months' notice for the landlord and 2 months' notice for the tenant to prevent automatic extension (Art. 1) (art. 1)

How it affects those involved

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).

Frequently asked questions

How much compensation is the tenant entitled to if the landlord does not wish to renew the contract?
The landlord must pay compensation of at least 12 monthly instalments of rent for a similar property, provided the amount is not less than one monthly instalment for each year of residence (Art. 1).
How much notice must I give to avoid renewing the lease?
The landlord must provide at least 6 months' notice, while the tenant must provide at least 2 months' notice prior to the expiry date (Art. 1).
How long will the contract last if no one gives notice upon expiry?
The contract will be mandatorily extended for terms of 5 years if the landlord is an individual, or 7 years if the landlord is a legal entity (Art. 1).

Lifecycle

2026-10-01PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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