NEW REAL ESTATE LAW IN SPAIN 2025
In 2025, a new law takes effect that significantly impacts the Spanish real estate market. The goal is to make renting and buying more affordable, especially in high-cost areas like Barcelona, Madrid, Valencia, Marbella, and other popular cities.
The law affects everyone — from those looking to buy a property in Spain to current owners renting out their homes. Below is a summary of the main changes and how to prepare.
Key Changes in 2025
Rent Control
- Rent increases are limited in “stressed zones”.
- A new index replaces the old IPC for annual rent updates.
- In regulated areas, new contracts can’t exceed the rent from previous agreements.
More Rights for Tenants
- Automatic contract renewals.
- Deposit limited to a maximum of 2 months.
- No evictions without involvement from social services.
New Rules for Property Owners
- Owners of 5–10+ properties are classified as ‘large landlords’ and are subject to additional regulations.
- Required to follow reference prices, register contracts, and limit rent increases.
The State Is Now Building and Renting Housing
The Spanish government is launching a State Housing Company, which will:
- Receive 30,000+ units from SAREB.
- Build new affordable rental housing.
- Get priority to buy land and buildings for development
Owner benefits:
- Funding for renovating empty properties, if rented at accessible rates.
- Full IRPF tax exemption for owners renting below market rates.
Key Tax Changes
For Landlords:
- 100% income tax exemption when renting below market value.
- Stricter taxation of tourist rentals (now considered a business, subject to VAT).
- SOCIMIs (REITs) lose tax perks unless they build affordable housing.
For Foreign Buyers:
- Up to 100% property tax for non-EU buyers — aimed at curbing speculation.
What Does This Mean for You?
If you're looking to buy in Spain:
- Keep an eye on tax policy, especially if you're a non-resident — we can help.
- Expect more affordable housing, especially in suburban areas.
If you're a property owner:
- Regulations are stricter, but there are also incentives like tax benefits.
- It’s more profitable to rent at reference prices and do it officially.
If you’re a tenant:
- More rights, stable prices, protection from unjust evictions.
- Easier to renew contracts, harder to lose your home in a crisis.
Spain’s new 2025 real estate law is a major reform that changes the rules of the game. It matters whether you’re planning to buy, rent, or already own property.
Stay informed to make smart decisions — whether you’re relocating, investing, or renting.
Want to know how the new law affects your property in Marbella? Contact our experts — we’ll help you make the most of your investment in Spain.
