The housing decree upheld on 12 November 2026 is Royal Decree-law 29/2026, which remains in force: tenants can ask for an extension of up to two years, annual rent increases are capped at 2% until the end of 2027 and holiday lets now pay 10% VAT. The other decree, 28/2026, which would have renewed tenancies automatically every five or seven years, has been rejected and will not come into force.
The vote took place in the Standing Committee of Congress, the body that sits while Parliament is dissolved, on the last day of the 30-day deadline. The result was 35 votes in favour and 34 against. For anyone who owns, rents or wants to buy a home in Malaga and on the Costa del Sol, here is a summary of what stays in force and what does not.
What has been approved and what has been rejected?
Both decrees were approved by the Council of Ministers in early October, after Congress had rejected earlier versions. Decree 29/2026 bundled a broad package of housing measures and came into force on 8 October. Decree 28/2026 focused on the length of rental contracts and was due to apply from 15 November.
| Decree | Main content | Outcome |
|---|---|---|
| RDL 29/2026 | Extension of up to two years, 2% cap, seasonal lets, holiday-let VAT, TU CASA loan | Upheld, 35 to 34 |
| RDL 28/2026 | Automatic renewal of tenancies every five or seven years | Rejected, does not come into force |
PSOE, Sumar, PNV, ERC, Bildu and Podemos voted for decree 29/2026; PP, Vox and Junts voted against. Decree 28/2026 fell because the PNV joined the no vote. With the general election on 29 November approaching, the next government will be able to keep, amend or repeal these measures.
How does the decree affect landlords letting in Málaga?
If you let a flat as a main home in Málaga, Marbella or Fuengirola, these are the rules that remain in force:
- Extraordinary extension: the tenant can ask to stay up to two more years on the same terms if their contract reaches the end of its extension before 31 December 2028. The landlord can only refuse in specific cases, such as needing the home for themselves or their family as an individual, or if both parties sign a different agreement.
- Update cap: until 31 December 2027 rent can only rise by 2% a year. If it already exceeds the maximum value of the reference index, it cannot be updated.
- Tenant exit: after six months of the contract, the tenant can leave without compensation by giving 30 days notice.
- Room lets: the combined rent of all the rooms cannot exceed the price of renting the whole home.
There is relative good news for landlords: with decree 28/2026 gone, there will be no automatic five- or seven-year renewals and no compensation of up to twelve months of rent for not renewing. The Urban Leases Act still applies: five years of mandatory extension if the landlord is an individual and seven if it is a company, plus a tacit renewal of up to three years.
What happens to seasonal and holiday lets?
A seasonal let needs a real, justified reason, must last more than 31 days and, in general, no more than twelve months. If the reason cannot be proven, the contract is treated as a main-home tenancy, with all its protections. In areas with a lot of mid-term renting, such as central Málaga, it is worth checking the paperwork of every contract carefully.
The change with the biggest impact on the Costa del Sol is a tax one: holiday lets of up to 30 nights, which were VAT-exempt, will be taxed at 10% from 1 December 2026. It affects thousands of licensed homes in Málaga, Marbella, Estepona or Torremolinos, and means reviewing prices and filing obligations before the high season.
The decree also allows town halls in stressed-market areas to apply property-tax surcharges to empty and holiday homes. It does not currently affect the province of Málaga, because the Andalusian regional government has not declared any stressed-market area.
What changes for tenants?
Besides the extension and the 2% cap, protection for vulnerable households continues: until 31 December 2030 evictions can be suspended if there is no alternative housing, with compensation for the landlord in certain cases. In income tax, tenants with a taxable base below 33,007.20 euros will be able to deduct 10% of their rent, with income-based limits.
And for anyone who wants to buy a home on the Costa del Sol?
For buyers, the main novelty is the TU CASA scheme, run by the ICO: a 0% public loan for a first home covering up to 20% of the value, capped at 50,000 euros and repayable over ten years. It can help to put together the deposit, which is usually the biggest hurdle in Málaga. The specific eligibility requirements will be set by the ICO.
For investors buying to let, the message is twofold. Long-term renting keeps rents restrained and extensions long, while holiday letting loses part of its tax advantage with VAT. That is why yields have to be calculated under these rules, not those of a year ago. Purchases by large holders below 70% of the appraised value are also restricted until 2030, with some exceptions.
Conclusion
After 12 November the picture is clearer, at least until a new government is formed: decree 29/2026 is in force and 28/2026 is gone. If you own a rented or holiday home on the Costa del Sol, or are thinking of buying, EVS can help you review your situation and value your property with current market data.
FAQ
Is Royal Decree-law 29/2026 in force?
Yes. It has been in force since 8 October 2026 and Congress upheld it on 12 November by 35 votes to 34.
Are tenancies renewed automatically every five years?
No. That measure was in Royal Decree-law 28/2026, which was rejected and does not come into force. The terms of the Urban Leases Act still apply.
How much can I raise the rent in 2026 and 2027?
A maximum of 2% a year until 31 December 2027, and nothing if the rent already exceeds the maximum value of the reference index.
When do holiday lets start paying VAT?
From 1 December 2026, holiday lets of up to 30 nights are taxed at 10% VAT.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
