Spain's New Rental Law: Tenant Protections and Landlord Restrictions

Spain's New Rental Law: Tenants Gain Stability, Landlords Face Restrictions Spain's new rental law, Ley de Arrendamientos Urbanos (LAU), has brought significant changes to the country's rental market. The law, which took effect in May 2025, aims to protect tenants from unfair practices and price hikes often associated with short-term rental contracts. One of the key provisions allows tenants to continue living in their homes under the same conditions even if their lease expires without a new agreement being signed. This applies unless the termination was due to the tenant's actions. "The goal is to stop manipulations with short-term contracts," explains Olga, a real estate agent in Spain. "Landlords were using 11-month contracts to easily raise prices." While the law strengthens tenant rights, it also reduces the flexibility of property owners. The change reflects a broader effort to address Spain's housing crisis and provide greater security for renters. The long-term effects of the law on rental prices and availability remain to be seen, but it represents a notable shift in the balance between tenant and landlord rights.