Tacit renewal of a rental: what Decree 29/2026 changes if your lease has already expired

When a residential lease expires and the tenant stays on, paying every month without anyone objecting, the lease enters tacit renewal (tácita reconducción), and Royal Decree-law 29/2026 reaches these cases too. The tenant can request an extraordinary extension of up to two years and, without a new agreement, the rent cannot rise by more than 2% until 31 December 2027.

This is very common in older leases that have already used up their statutory extensions. That is why landlords, tenants and investors should know exactly what the decree says, in force since 8 October 2026, and which questions remain open.

What is tacit renewal in a rental contract?

It is governed by article 1566 of the Spanish Civil Code. If, when the lease ends, the tenant stays in the home for fifteen days with the landlord's consent and without being asked to leave, a new lease is deemed to exist.

It is not simply a continuation of the old contract but a new one that keeps its terms, with two important exceptions. Its duration becomes the rent payment period, usually monthly, under article 1581. And guarantees given by a third party, such as a guarantor, do not carry over to the new contract, under article 1567.

Can the tenant request the extraordinary extension under Decree 29/2026?

Yes. The fifth final provision of the decree expressly mentions three situations: the end of the mandatory extension under article 9.1 of the Urban Leases Act (LAU) before 31 December 2028, the end of the tacit extension under articles 10.1 and 10.2, or the end of a tacit renewal period under article 1566 of the Civil Code.

The extension is not automatic. These are the requirements set by the text published in the Official State Gazette (BOE):

• A main-residence lease governed by the Urban Leases Act and in force on 8 October 2026.
• The tenant is up to date with the rent and has been so every month for the previous eight months.
• An express request from the tenant to the landlord.
• Extension in annual periods, up to a maximum of two years, on the same terms and conditions as the current contract.

The landlord must accept it except in three cases: the parties have agreed other terms, a new contract has been signed, or the landlord has given notice within the deadlines of article 9.3 that they need the home for themselves or a relative, with a real and proven reason, even if the contract did not provide for this. Nor does it apply if both parties agree to renew or sign a new contract with a rent at least 5% lower.

Are requests made under Decree 8/2026 still valid?

Royal Decree-law 8/2026, from March, already provided for an extraordinary extension. The first transitional provision of the new decree treats requests made while it was in force as valid, with no need to repeat them, and adds that any later extension will follow the rules of Decree 29/2026.

Lawyer José Ramón Zurdo, of the Agencia Negociadora del Alquiler, argues in idealista that this validation does not retroactively widen the scope of the earlier decree. If a lease in tacit renewal fell outside Decree 8/2026, a request made back then probably does not count, but the tenant can now request the extension under Decree 29/2026 if they meet the requirements. The prudent course is to make a new written request, for example by burofax.

How much can the rent rise in a lease under tacit renewal?

The sixth final provision limits annual updates falling between 8 October 2026 and 31 December 2027. If the rent exceeds the maximum value of the state reference index, Serpavi, it cannot rise at all. Otherwise it rises by whatever is newly agreed and, failing agreement, by 2% at most.

Since a lease under tacit renewal keeps the original terms, it also keeps its update clause, if it had one. The cap therefore applies to it just as to any other residential lease. If the contract provided for no update, the rent cannot rise, because article 18 of the Urban Leases Act only allows updates on the agreed terms.

An example with a rent of 1,200 euros a month and a clause linked to CPI of 3%:

What does it mean for landlords and investors on the Costa del Sol?

En Malaga, Marbella or Fuengirola many flats are let under contracts signed years ago that now run month to month. Until now, the landlord could end that arrangement at the close of a monthly period with due notice. Under the decree, if the tenant asks and meets the requirements, the landlord will have to accept up to two more years on the same rent and terms, unless they need the home or the parties reach another agreement.

The province of Málaga has not been declared a stressed-market area, so the three-year extension of article 10.3 does not come into play here. Before taking any step, it is worth checking these points:

• Whether the lease is in tacit renewal and since when.
• Whether there was a guarantor, because their guarantee does not pass to the new contract.
• Whether the current rent exceeds the Serpavi value for your property.
• Whether you genuinely need the home and can prove it within the article 9.3 deadlines.
• If you are buying a flat with a tenant, what lease they have and what stage it is at.

For a buyer or investor, a flat with a tenant in tacit renewal is no longer a home that can become vacant in a month or two. Up to two more years of tenancy and a practically frozen rent must be factored into the yield calculation.

The bottom line

Decree 29/2026 does not change the civil-law rules on tacit renewal, but it does change their effects: it opens the extraordinary extension to these leases and applies the 2% cap to them. It must be ratified by the Standing Committee of Congress, with the vote scheduled for 12 November, and if it is not, it will stop applying, so it is worth following the vote. If you own a let property on the Costa del Sol or plan to buy one with a tenant, EVS Property Group can help you assess how it affects you.

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