If you rent in Spain, this is the year that matters.
In 2026, more than 630,000 rental contracts signed in 2021 during the pandemic will expire, affecting roughly 1.6 million people. And this is far from a mere administrative renewal: many of those agreements were signed at exceptionally low prices that no longer exist in today’s market.
Spain Press Editorial Team
Five years later, the reality has changed
Rents have risen by 30% to 50% depending on the region, while these older contracts could only be updated according to capped official index limits.
The result: thousands of properties are currently priced well below market value.
Now those contracts are ending — and the market is shifting abruptly.
What it means for landlords
Once a contract expires, there are three legal options:
-
Take the property back
-
Sign a new contract at the current market price
-
Renegotiate with the existing tenant
For many owners, this is the first opportunity in years to adjust rents to real market levels — or to remove the property from long-term letting altogether.
As a consequence, supply is expected to shrink further: not all homes will return to the rental market.
What it means for tenants
For tenants, the most difficult phase is beginning.
Finding a new property will very likely mean:
-
higher prices
-
tougher competition
-
stricter selection criteria (income, employment contract, guarantees)
Many contracts will simply not be renewable under similar conditions.
Key legal deadlines
Spanish tenancy law strongly protects tenants — but requires formal procedures.
If a landlord wants the property back:
-
they must give four months’ notice before the contract ends (for contracts signed after March 2019)
-
and this must be formally documented (usually via burofax)
If this notice is not correctly served → the contract is automatically extended for up to three additional years under the same conditions.
If the notice is valid → the tenant must vacate on the contract end date.
Special extensions
There are two exceptions:
-
Social or economic vulnerability → possible 1-year extension (for large landlords)
-
High-pressure housing areas → possible extension of up to 3 years with rent caps
Why this year is different
Around 300,000 contracts expired in 2025.
In 2026 the figure more than doubles.
And another similar wave follows in 2027.
This is not just a price increase — it marks the end of the pandemic-era rents.
The Spanish housing market is entering a new phase in which prices reflect the current housing shortage.
For foreign residents, the practical takeaway is simple:
if you still hold an old contract, you are almost certainly paying well below market value — and that will rarely continue once it expires.
