70,000 evictions stopped in four years: the impact of a moratorium that falls again

MadridCongress has rejected the two housing decrees of the Spanish government. With one, the possibility of implementing so-called indefinite rental contracts falls through: the automatic extensions of contracts are lost, which in some cases would have been accompanied by compensation for tenants –if the law is not complied with–. With the other decree, a battery of measures falls, many of which are social, also regarding housing. It is these measures that have alerted movements for the right to housing. Among other things, the moratorium on certain evictions of vulnerable families disappears.

Evictions

The suspension of some evictions of vulnerable families, as well as compensation for certain landlords in the event that a judge stops an eviction, was not an entirely new measure. A similar proposal was implemented during COVID-19 and remained in place until December 2025. It was voted on again in January 2026, when there was an attempt to extend it, but the PP, Vox, and Junts voted against it. Between 2020 and 2025, up to 70,000 evictions of vulnerable families without alternative housing had been successfully halted (13,000 of which in Catalonia), according to the latest data from the DESCA Observatory, which has been monitoring the impact since then. During this same period, the General Council of the Judiciary (CGPJ) has counted 160,000 evictions that were indeed carried out.

The Observatory states that the figure could be higher because the autonomous communities did not collect all the data and had to rely solely on the database of the General Council of the Judiciary (CGPJ). The first report in which they obtained complete data covered 2020 and 2024, at which point 60,000 evictions had been stopped. The Observatory acknowledged that the moratorium "needed improvements," but "it was the only measure that had demonstrated some effectiveness."

In addition to evictions (which could not be stopped in all cases), the measure strengthened compensation for private individuals, both in terms of covering unpaid rent and the settlement of debt by the administrations.

Contract extensions

The aim was to contain a possible rise in rental prices for those contracts signed five or seven years ago (depending on the landlord) in a context of lower prices that were beginning to fall. For this reason, an extraordinary two-year extension (reviewable annually) was proposed for contracts ending before December 31, 2028, so that their conditions could be maintained. The landlord is obliged to accept the extension if an alternative agreement is not reached, a new contract is signed, or they communicate and justify the need to recover the apartment (for example, in case it is for a family member).

Rent update

The freeze on the annual rent update is lifted in cases where the contract is above the maximum price index of the Ministry of Housing. For the rest of the contracts, the annual update was limited to 2% until December 31, 2027, to avoid increases with inflation rates like the current one (4.9% this September).

Seasonal and room rentals

The reinforcement of seasonal and room-rental contracts, which have proliferated in recent years and served as a way to circumvent the rules for standard contracts, has disappeared. Although Catalonia has its own law, it is being challenged at the Constitutional Court, and the decree could have served as a safeguard in case some articles were struck down. Among other things, it defined what is understood by seasonal and room-rental contracts (the use had to be justified and accredited) and limited their duration. The VAT on tourist apartments at 10% (which could be applied in stressed areas) also falls, in order to equate it to the VAT on hotels.

Tax deductions

The decree included bonuses and tax relief for landlords and tenants in stressed areas, which pleased parties such as Junts and the PNV. For example, tax deductions of up to 100% for a small landlord (ten properties or less) are dropped if they apply a rent reduction of at least 5% compared to the previous contract.

Regarding tenants, a 10% income tax (IRPF) deduction for habitual rent was proposed. There was an income limit and the deduction decreased based on it.

Access to a first home and supply

An ICO credit line with 0% interest was established to access a first home. It was granted based on age and income, but also on the price of the property.

Tax deductions on personal income tax (IRPF) were also provided, which could reach 100% on the capital gains from the sale of an apartment when sold to a public entity. The price of the property was limited.