Repeal Royal Decree-Law 8/2026 - Leases

The extraordinary 2% cap applicable to the annual rent updates of residential lease agreements has ceased to be in force following the repeal of Royal Decree-Law 8/2026 by the Spanish Congress of Deputies. Consequently, the exceptional measures contained in said regulation lost their validity at the end of April 2026.

This repeal entails the disappearance of the temporary extraordinary regime that limited rent updates. Therefore, following the loss of its validity, the ordinary rules set forth in the Urban Lease Act (LAU), as well as the contractual agreements entered into by the parties, once again become applicable, without prejudice to any specific limitations arising from regulations concerning stressed housing markets and legally established rent update systems.

Likewise, the possibility of benefiting from the extraordinary mandatory two-year extension provided for in the aforementioned exceptional regulation has also ceased to apply.

It should be noted that Royal Decree-Law 8/2026 remained in force between 22 March and 29 April 2026.

Consequently, any rent updates, contractual renewals or extraordinary extensions that were formally agreed and finalized during this period may retain full legal validity, notwithstanding the current doctrinal and legal debate regarding the specific effects of the repeal on legal situations that became consolidated while the regulation was in force.