Sánchez’s government approves two decrees extending rental contracts, halting evictions until 2030, and restricting home purchases by investment funds.

On Tuesday, the Council of Ministers approved two housing-related royal decrees—dubbed the "Maricarmen decree" in the press, referencing the eviction that sparked the "Sol" encampment protests. Prime Minister Pedro Sánchez defended the measures as a response to the needs of "the people" and called on Congress to "do its part" during an extraordinary session on Friday, October 2. The package extends rental contracts, prolongs the moratorium on evictions for vulnerable individuals, restricts home purchases by large corporate landlords, regulates short-term rentals, and establishes 0% interest public loans for first-time homebuyers. In practice, the State is intervening more deeply in terms of timelines, pricing, buyer eligibility, and eviction procedures.

The first decree reinstates the expired "social shield" and extends it until December 31, 2030: evictions of vulnerable individuals cannot be carried out unless an alternative housing solution is provided. Contracts for primary residences expiring before December 31, 2028, may be extended by up to two years (upon the tenant's request; this is not always automatic). Rents exceeding the reference index are frozen; others are subject to a maximum 2% increase until the end of 2027. Until 2028, the expansion of the housing stock through purchases by investment funds and large corporate holders is prohibited. Short-term rentals are limited to 12 months and require justification; otherwise, they are treated as primary residences and subject to the Urban Leases Act (LAU), as well as caps on security deposits and prices. Tourist rentals are now subject to a 10% VAT rate. Personal income tax (IRPF) incentives are available for both landlords and tenants.

The second decree—the most difficult to ratify—includes the automatic renewal of primary residence leases: landlords must demonstrate a valid reason for non-renewal or pay compensation. The "Tu Casa" (Your Home) program, managed by the ICO, offers interest-free loans of up to 20% of the purchase price for a first home—capped at €50,000—repayable over approximately ten years. VAT on the construction of public and subsidized housing is also being reduced. The PSOE and Sumar split the legislation into two separate measures to ensure the survival of at least the anti-eviction provisions and the ban on fund acquisitions. The PP and Vox are already blocking renewals of this type, while Junts has made its support conditional. The first decree was published in the Official State Gazette (BOE) on Wednesday. Pending ratification or rejection by Congress, the Government has proceeded as announced: increasing state oversight regarding private contracts, pricing, purchasing, and evictions.

Este Gobierno ha escuchado a la gente y ha actuado.

Tenemos una oportunidad única para volver a hacer de cada casa un hogar, la base para construir un proyecto de vida y un derecho al alcance de todos.

Hagámoslo juntos y juntas. pic.twitter.com/QNZF9DK5Ga — Pedro Sánchez (@sanchezcastejon) September 29, 2026