El Mundo has accessed a royal decree approved by the Council of Ministers on 29 September 2026 regarding the automatic renewal of rentals. Registered in the Lower House by Minister Félix Bolaños, the decree modifies Article 10 of the Urban Leases Law.
The new rules mandate automatic contract extensions of five years, or seven for legal entities, unless notice is given. Landlords must now provide six months' notice to terminate, while tenants require two. Non-renewal requires a 12-month rent indemnity.
This indemnity is due upon key handover and must equal at least one month's rent per year lived in the property. The decree, which also penalises false claims of personal use, faces a validation vote in Congress this Friday, 2 October 2026.