The Plenary of Spain’s Congress of Deputies has approved the repeal of Royal Decree-Law 8/2026 of 20 March, adopted under exceptional and urgent circumstances to address the economic and social consequences of the conflict in Iran.
The measure, which entered into force on 22 March following its publication in the Official State Gazette, failed to pass the parliamentary ratification process set out in Article 86.2 of the Spanish Constitution. The vote —177 against, 166 in favor and 5 abstentions— led to its repeal and the immediate loss of legal effect of its provisions.
Scope and purpose of the repealed measure
The Royal Decree-Law was designed to ease the financial burden on households in relation to housing, ensuring that combined rent and basic utility costs did not exceed 30% of average income.
- To this end, it introduced two main measures:
An extraordinary extension of up to two years for residential lease agreements due to expire before 31 December 2027. - A cap of 2% on rent increases in contracts where the landlord qualified as a large property owner.
These measures followed earlier policy interventions in the rental market aimed at containing prices during periods of economic pressure.
Legal considerations surrounding the repeal
From a constitutional perspective, the decision highlights the key role of parliamentary oversight in the use of royal decree-laws as exceptional legislative instruments. As is well established, failure to secure ratification not only prevents the measure from being confirmed, but results in its immediate repeal.
A key question arises:
What happens to legal situations created while the measure was in force?
While the general principle is that effects cease on a non-retroactive basis (“ex nunc”), each case must be assessed individually to determine whether certain situations —such as already exercised extensions or applied rent increases— may have created vested rights or whether they fall outside any legal framework following the repeal.
Impact on the rental market
In practice, the repeal means a return to the previous legal framework, which may lead to:
- An immediate readjustment of expectations among landlords and tenants.
- A potential resurgence of rent increases under standard rules.
- Greater litigation risk around transitional arrangements.
It also introduces a degree of regulatory uncertainty in a particularly sensitive sector, where legal stability is essential for decision-making.
Final remarks
Beyond the specific content of the measure, this development highlights two structural issues:
- The balance between the need for urgent legislative action and the requirement for parliamentary oversight.
- The importance of legal certainty in public policy affects the right to housing.
Future legislative initiatives may seek to address the challenges of the rental market in a more stable and coherent manner within the current economic context.
At addwill, we remain at your disposal for any further queries or clarifications, as well as for any advisory services you may require in this area.
Cristina Esteruelas
Manager
Civil & Real Estate Department, addwill