In 2016, the Government presented a draft law with the aim of flexibilizing the rental housing market in Spain. This initiative sparked intense debate among property owners, tenants, sector professionals, and jurists, as it introduced significant changes in the rights and obligations of both parties. Below, we analyze its main measures and reflect on their practical implications.
One of the most relevant modifications was the reduction of the minimum mandatory lease contract term from five to three years. From then on, property owners could reclaim the housing more quickly if they did not wish to renew the contract after that period.
From a market perspective, this measure generated uncertainty. By shortening the stability cycle for the tenant, it favored greater turnover and, potentially, more frequent price revisions, which could lead to speculative tensions either upwards or downwards, depending on the economic context.
Until then, the tenant who terminated the contract before five years had to compensate the landlord with one monthly payment for each remaining year. The draft law eliminated this clause, allowing the tenant to leave the property with a simple 30-day notice, even within the first year of the contract.
This measure could benefit the tenant, but it generated legal uncertainty for the landlord, especially in short-term contracts.
Another proposed reform suggested that rent updates be freely agreed upon by the parties, without being subject to the CPI. Although it initially appealed to the autonomy of will, the absence of an objective reference could open the door to abuses, especially in markets with high demand pressure.
The draft law foresaw shortening the deadlines of the eviction procedure in case of non-payment, allowing the landlord to initiate legal actions if the tenant did not pay the rent within ten days. However, it was enough for the tenant to settle the debt to stop the process.
This raised doubts about the real effectiveness of the measure: was the procedure really expedited or simply postponed, generating higher costs and delays for the landlord?
The reform allowed the owner to recover the property if needed for habitual residence, adoption, or changes in family situation, with a two-month notice. Although this option offered greater flexibility, it also raised doubts about subjectivity in justifying the need and its impact on tenant security.
Another relevant measure was the possibility to freely sell a rented property, even without respecting the lease contract, if it was not registered in the Property Registry. Since most leases were not registered, this reform could leave the tenant in a vulnerable position in the event of the property being sold to a third party.
The draft law also contemplated measures to facilitate the entry of foreign companies dedicated to leasing: elimination of certain taxes, alignment with the Spanish tax regime, and relaxation of operating requirements, as long as they did not have headquarters in tax havens.
Although this opening could attract international investment, it also drew criticism for the lack of equivalent incentives for companies established in Spain, which could pose a competitive disadvantage for local actors.
This draft law, although it was never fully implemented, marked a turning point in the debate on the balance between flexibility and legal security in the rental market. Many of the proposed measures stemmed from a liberalizing logic, but did not always offer sufficient guarantees for all parties.
At Atipika, we believe in a rental model based on professionalism, transparency, and shared responsibility. We closely monitor each regulatory change to provide our clients — both property owners and tenants — with the best possible information and most rigorous advice.