New rental law: contracts renew automatically and landlord must compensate if not renewed
01 Oct 2026Effective: 01 Oct 202664 views
Who is affected:
Landlords and tenants of habitual residence rental properties throughout Spain
Summary
Habitual residence rental contracts shall be automatically extended upon expiration. If the landlord decides not to renew, they must pay the tenant compensation equivalent to 12 monthly payments.
Detailed analysis
PRO
The RDL amends article 10 of the LAU to make automatic renewal the general rule for habitual residence rental contracts, replacing annual tacit renewal. After the minimum period of 5 years (7 if the lessor is a legal entity), the contract is renewed for successive periods of equal duration unless express notice is give…
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