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The property market in Spain is a dynamic sector, influenced by continuous regulatory and tax changes. For owners, tenants, and those looking to invest or buy their first property, staying up-to-date with the latest developments is essential. At Asif Grup, with over 17 years of experience, we aim to offer you a clear guide on the most relevant legal and tax updates for 2026.
The Ongoing Impact of the Property Law
The Law for the Right to Housing, in force since 2023, continues to unfold its effects on the market, seeking a balance between tenants' rights and guarantees for owners. Its main objective is to increase the supply of affordable properties and regulate rental prices in stressed areas.
Tourist Rentals and Homeowners' Associations
One of the most significant developments this year, in force since August 2026, is the modification of the Horizontal Property Law. This establishes that, to allocate flats for tourist rentals, the approval of the majority of neighbours will be required. This change seeks to offer homeowners' associations greater decision-making capacity regarding the use of properties within their building, and is crucial for those owners considering this rental modality.
Duration of Rental Contracts
For rental contracts signed from 6 March 2019, the possibility for tenants to automatically extend their stay to complete five or seven years, depending on whether the owner is a natural person or a legal entity, is consolidated. This measure strengthens tenant stability and offers a long-term security framework for habitual residence rentals.
Key Tax Updates for your Property
Tax implications are a decisive factor in any real estate transaction. Royal Decree-Law 2/2026 has introduced changes effective from 1 January 2025 that are worth knowing.
Deductions for Energy Efficiency
Deductions for energy efficiency improvement works in properties have been extended. These deductions will be available until 31 December 2026, and even until 31 December 2027 if the property is intended for rental and is leased before that date. This measure seeks to incentivise the improvement of Spain's property stock, promoting sustainability and energy saving.
Imputation of Real Estate Income
Regarding the imputation of real estate income, it is important to remember that the reduced percentage of 1.1% of the cadastral value applies to properties located in municipalities with cadastral values revised from 1 January 2012. Knowing the cadastral review status of your municipality can influence the taxation of your vacant property.
Aid and Plans for Access to Property
The Government has reinforced its commitment to access to property, especially for younger people.
The property market is a reflection of society; understanding its laws and trends is key to making informed decisions.
The new State Property Plan 2026-2030, approved in April/May 2026 with an investment of 7,000 million euros, includes significant aid. Particularly noteworthy are those aimed at young people under 35 who wish to buy or build their first property in municipalities with fewer than 10,000 inhabitants or those at risk of depopulation. This aid can amount to up to 15,000 euros, provided it does not exceed 20% of the acquisition price.
The legal and tax landscape for property in Spain is constantly evolving. Being well-informed will allow you to make the best decisions for your assets and your projects. At Asif Grup, we are at your disposal to advise you on any aspect related to the purchase, sale, or rental of your property. We recommend always consulting with professionals to analyse your particular case.
Frequently asked questions
Yes, since August 2026, the Horizontal Property Law requires the approval of the majority of neighbours to allocate flats for tourist rentals.
