Spain’s cabinet is preparing a sweeping decree that will cap the price of individual room rentals and clamp down on so-called “seasonal” leases that are increasingly used as de-facto long-term contracts. Prime Minister Pedro Sánchez unveiled the outline of the reform on Monday, 12 January 2026, while launching construction of the 10,700-unit Campamento public-housing project in Madrid.
Under the draft rules, the combined rent for rooms in a flat may not exceed the legal ceiling that already applies to an entire dwelling in the same area. Landlords who renew an existing lease without a rent increase will qualify for a 100 percent income-tax rebate, while those who sign new contracts within the regulated price band will receive a 50 percent rebate. Medium-term “seasonal” leases—often used to skirt tenant-protection laws—will be limited to six months and subject to strict proof of temporary need (study, medical treatment or short-term work assignment). Repeat use of seasonal contracts with the same tenant will be banned.
The national government says the measure is essential to curb speculative letting in tourist hotspots such as Barcelona, Málaga and the Balearics, where average rents have risen by more than 40 percent since 2020 and are squeezing both locals and incoming foreign workers. Housing Secretary Isabel Rodríguez estimates the decree could bring 80,000 units back onto the conventional long-term market during its first year of implementation.
![Spain Moves to Cap Room Rentals and Tighten Seasonal Leases Amid Housing Crunch]()
For foreign professionals relocating to Spain—or employers moving staff—the visa process can be as challenging as securing compliant housing. VisaHQ’s online platform simplifies Spanish visa, residence and work-permit applications, guiding HR teams and individual assignees through every step and reducing processing time. Learn more at https://www.visahq.com/spain/.
For multinational employers, the reform will narrow the cost gap between traditional leases and per-room rentals often used to house junior assignees or rotational staff. HR and mobility managers should plan for higher compliance duties: companies renting accommodation on employees’ behalf will need to verify that contracts respect the new caps, and that any corporate leases classified as “seasonal” meet the tightened criteria. Relocation providers also warn that the crackdown may push some landlords into the unregulated short-stay sector, making it harder to secure inventory during peak transfer periods.
Because housing regulation in Spain is partly devolved, each of the 17 regional governments must designate “stress zones” and enforce the new rules. Left-leaning regions such as Catalonia and Valencia have signalled support, but conservative administrations in Madrid and Andalusia say they may challenge the decree in court, arguing that price controls deter investment in new housing stock. The political tug-of-war could create a patchwork of enforcement, so companies with nationwide mobility programmes should monitor regional bulletins closely.
Under the draft rules, the combined rent for rooms in a flat may not exceed the legal ceiling that already applies to an entire dwelling in the same area. Landlords who renew an existing lease without a rent increase will qualify for a 100 percent income-tax rebate, while those who sign new contracts within the regulated price band will receive a 50 percent rebate. Medium-term “seasonal” leases—often used to skirt tenant-protection laws—will be limited to six months and subject to strict proof of temporary need (study, medical treatment or short-term work assignment). Repeat use of seasonal contracts with the same tenant will be banned.
The national government says the measure is essential to curb speculative letting in tourist hotspots such as Barcelona, Málaga and the Balearics, where average rents have risen by more than 40 percent since 2020 and are squeezing both locals and incoming foreign workers. Housing Secretary Isabel Rodríguez estimates the decree could bring 80,000 units back onto the conventional long-term market during its first year of implementation.
For foreign professionals relocating to Spain—or employers moving staff—the visa process can be as challenging as securing compliant housing. VisaHQ’s online platform simplifies Spanish visa, residence and work-permit applications, guiding HR teams and individual assignees through every step and reducing processing time. Learn more at https://www.visahq.com/spain/.
For multinational employers, the reform will narrow the cost gap between traditional leases and per-room rentals often used to house junior assignees or rotational staff. HR and mobility managers should plan for higher compliance duties: companies renting accommodation on employees’ behalf will need to verify that contracts respect the new caps, and that any corporate leases classified as “seasonal” meet the tightened criteria. Relocation providers also warn that the crackdown may push some landlords into the unregulated short-stay sector, making it harder to secure inventory during peak transfer periods.
Because housing regulation in Spain is partly devolved, each of the 17 regional governments must designate “stress zones” and enforce the new rules. Left-leaning regions such as Catalonia and Valencia have signalled support, but conservative administrations in Madrid and Andalusia say they may challenge the decree in court, arguing that price controls deter investment in new housing stock. The political tug-of-war could create a patchwork of enforcement, so companies with nationwide mobility programmes should monitor regional bulletins closely.
