The key facts

  • The parliament's standing committee approved the tenant protection decree but rejected the decree on indefinite lease renewals
  • The package includes eviction protections until 2030, a cap on rent increases until 2027, and a 10% VAT on short-term tourist stays
  • The November 29 elections were called after the previous housing decrees were rejected in October; Wednesday's strike was the first in 14 years

Package adopted, but not in full

Spain's government on Friday presented a housing package that received parliamentary support, Anadolu reports. The day before, the parliament's standing committee approved a decree extending eviction protections, allowing longer lease agreements and restricting speculative property purchases. At the same time, lawmakers rejected a separate decree that would have introduced indefinite lease renewals and compensation for tenants denied a renewal.

What exactly is changing

The approved measures extend protection for vulnerable tenants against eviction until 2030, subject to a number of conditions, and allow eligible renters to request a lease extension of up to two years. The package also caps annual rent increases until 2027, tightens rules on short-term rentals, introduces a 10% VAT on short tourist stays, limits the total fee for renting out rooms individually, and provides tax breaks for landlords who lower the rent.

Political context

The vote took place hours before the start of the campaign ahead of the November 29 elections, which Prime Minister Pedro Sánchez called after parliament rejected the previous housing decrees in October. Housing is the top issue for Spaniards: in an October poll by the state-run CIS center, nearly 56% named it one of the country's three main problems. On Wednesday a general strike took place — the first in Spain in 14 years — at which unions demanded affordable housing and wage increases.

Dispute over procedure and the parties' positions

The opposition People's Party accused the government of bringing the measures back 'through the back door' via the standing committee, where a different balance of seats made it possible to overcome resistance from the Catalan separatist party Junts. Housing Minister Isabel Rodríguez linked the package to Wednesday's protests: 'Yesterday the right to housing won on the streets and in the workplaces. And I hope it will also win at the ballot boxes,' Anadolu quotes her as saying. The package reflects different approaches to the crisis: Sánchez's Socialists bet on tenant protection and more public and affordable housing, while the People's Party focuses on construction, promising 1 million homes, simplified permitting procedures and tax relief for young buyers. Its leader Alberto Núñez Feijóo pledged to repeal the approved decree if he wins the election.