Government re-approves housing decrees after Congress rejection: ‘Tu Casa’ loans of up to €50,000 and a rent extension without a secured majority

09/10/2026 – ⏱ 5 min

This article is for informational purposes only and does not constitute investment advice or a recommendation of any kind.

On 6 October 2026 the Council of Ministers approved two new royal decree-laws on housing, four days after the Plenary of the Congress of Deputies rejected the validation of the previous ones on 2 October, with the votes against of PP, Vox, Junts and UPN. With the Cortes dissolved by the calling of a general election for 29 November, validation now falls to the Permanent Deputation. The BOE published the texts on 7 October. The first came into force on 8 October; the second, concerning indefinite rental contracts, is set to come into force on 15 November and will only apply if that committee validates it.

What was approved and how it differs from the rejected text

The Government maintains that the new decrees keep the essence of the previous ones, with amendments and additional measures. The President, Pedro Sánchez, listed 21 measures, although he did not detail them all. According to information published by the financial press, the changes are intended to reduce the risk of the text being considered a fraud on the law by reproducing one that has already been rejected, a question on which Javier Tajadura, Professor of Constitutional Law, has warned; he also considers that some measures in the first decree seriously affect the right to property. This is the opinion of an expert, not a court ruling.

‘Tu Casa’: ICO loans of up to 50,000 euros for a first home

The main novelty announced is the ‘Tu Casa’ mechanism, endowed with 10,000 million euros and managed by the Instituto de Crédito Oficial (ICO). It consists of State-backed loans at 0% interest for the purchase of a first home, which would cover up to 20% of its value with a maximum of 50,000 euros and a ten-year repayment period. It is aimed at people with income but without sufficient savings to afford the deposit for a mortgage, and is not limited to young people. The Government complements the measure with guarantees of 280 million euros for the industrialisation of housing and a social impact fund of 400 million for social providers to develop affordable rental housing.

Rent: extraordinary extension, 2% cap and seasonal lettings

The first decree provides for an extraordinary extension of up to two years for primary-residence contracts whose extension ends before 31 December 2028, a 2% limit on rent updates until 31 December 2027, and a requirement for a genuine reason for seasonal lettings, which in general may not exceed twelve months; without justification they would be considered primary residence. In room rentals, the sum of the rents may not exceed the price of the entire dwelling. Advertising of leases must state the reference price index in the relevant areas, the applicable rent limit and, where applicable, the landlord's status as a large holder.

Taxation, large holders and evictions

On tax, the text includes a 10% personal income tax (IRPF) deduction for tenants with taxable bases below 33,007.20 euros, which the Government estimates at around 1,000 euros a year for an average rent of 800 euros a month, reductions for landlords who lower the rent, 10% VAT for tourist lets of up to 30 nights, and IBI surcharges on empty homes in stressed areas of up to 50%, with higher percentages for owners of several tourist dwellings. VAT on publicly subsidised and protected housing is set at 4%. As regards investment, the limitation on purchases by funds and large holders below 70% of the appraisal value is maintained and, according to the published text, extended until 31 December 2030 (previously 2028), and the category of large holder is extended to those who own more than ten dwellings. The moratorium on evictions for vulnerable people without a housing alternative runs until that same date, with compensation for owners of up to three years, from which funds are excluded.

The second decree: indefinite rental contracts

The second text regulates the automatic renewal of contracts for periods of five years, or seven if the landlord is a legal entity, except for justified cause. The owner could recover the dwelling if they prove they need it as a primary residence for themselves or for certain family members, with six months' notice, compared with the tenant's two months. If they do not renew without justified cause, the compensation would be the greater of three amounts: twelve monthly payments calculated using the upper value of the reference range, one monthly payment per year of residence or, in the absence of a reference value, the current rent. The Organisation of Consumers and Users (OCU) welcomes the expansion of affordable supply, but warns that making it harder to recover rented homes could discourage private supply and put pressure on prices in the areas of highest demand, although it does not foresee a generalised collapse in the short term.

The parliamentary timetable

The Permanent Deputation is made up of 69 deputies. PSOE, Sumar, ERC, Bildu, PNV and Podemos total 35 against the 34 of PP, Vox and Junts. The PNV has confirmed its support for the first decree, so the Government would have a majority to validate it. The PNV nevertheless maintains its rejection of the second, which according to Sánchez himself currently lacks a majority. Junts had asked for both texts to be withdrawn and replaced by another with measures against squatting and tax cuts for first homes, a proposal the Government rejected. In 2019 the Permanent Deputation had already validated a royal decree-law reforming the rental market. CCOO and UGT have also agreed a 24-hour general strike for housing and wages, planned for early November.

Why this matters to the real-estate investor

The variables these texts modify affect residential investment in several ways: the duration and updating of existing rental contracts, the taxation of owners and of socimis, the purchasing conditions for funds and large holders, and public financing for first-home purchases, which may influence demand. The financial context adds another element: according to Trioteca data reported in the press, the Euribor closed September at 3.247%, its highest level in the last twelve months, and the average value of mortgaged housing went from 294,667 euros in the second quarter to 268,333 euros in the third, while the average amount requested remained at around 207,667 euros. These are data from a platform's sample of transactions, not from the market as a whole.

Investor takeaway

Regulatory uncertainty should be borne in mind: the effectiveness of the first decree depends on its validation and the second lacks, according to the Government, a majority in the Permanent Deputation. In addition, the result of the 29 November election may change the regulatory framework. The texts may also be subject to appeals. Past results are no guarantee of future results, and all real-estate investment carries risks of illiquidity, default and total or partial loss of capital. At European level, the activity of crowdfunding platforms is governed by Regulation (EU) 2020/1503 and, in Spain, by the implementing and supervisory rules of the CNMV.

Realty Investor

Your real estate crowdfunding, in one app.

Discover new opportunities. Invest through leading platforms. Manage your whole property portfolio from a single place.

The Realty Investor beta is now available. Explore the market, discover new projects and get to know the platform with simulated money, without putting in any capital.

Download the beta and start discovering a new way to manage your real estate investments.