Spain Approves 21 New Housing Measures: What It Could Mean for Renters, Landlords and Holiday Lets in Lanzarote
Spain has approved a fresh package of 21 housing measures aimed at tackling the country’s housing shortage and making renting and buying a home more accessible. For people living in Lanzarote, as well as property owners and anyone considering buying a home in the Canary Islands, the changes are worth understanding.
The measures were approved by the Spanish Government on 6 October 2026 and the main housing decree was published in the Official State Gazette (BOE) on 7 October. It is due to come into force on 8 October, although some individual provisions have later effective dates.
The package covers first-time buyers, long-term renters, landlords, empty properties, social housing, seasonal rentals, room rentals and tourist accommodation. It is part of a much wider attempt to increase the supply of affordable housing in Spain.
What are the new housing measures?
One of the most talked-about changes is a new first-home finance scheme known as TU CASA. It is designed to help people buying their first habitual home by providing a loan of up to 20% of the property's value, capped at €50,000.
The loan is set at 0% interest and carries no commission. It can run for up to 10 years, with a repayment grace period that can extend for the duration of the mortgage, subject to a maximum of 30 years.
Importantly, the scheme is not limited to younger buyers. The legislation says it is available to people of any age who are purchasing their first habitual home, subject to the detailed conditions of the scheme.
For anyone looking at buying property in Lanzarote, this could be significant, although buyers will need to check the eventual application requirements and whether a particular property qualifies.
Extra protection for renters
The new legislation also gives greater stability to people renting their main home.
Under the new rules, once the minimum five-year rental period has been completed — or seven years where the landlord is a company — the contract can continue in successive periods unless either side gives the required notice.
For landlords, the notice period for ending a tenancy in these circumstances rises to six months, while tenants generally retain a two-month notice period.
There is also a new compensation system when a landlord validly chooses not to renew a qualifying tenancy. In general terms, the landlord may have to compensate the tenant, although there are important exceptions, including situations where the owner genuinely needs the property as a permanent home for themselves or certain close family members.
This is an important area for both landlords and tenants in Lanzarote, because the precise circumstances of each rental contract will matter.
A temporary extension for existing rental contracts
Another measure allows tenants with qualifying rental contracts to request an extraordinary extension of up to two additional years, normally in annual periods, provided the conditions set out in the legislation are met.
The government says the aim is to give households greater security and avoid people suddenly having to find another home in an already pressured rental market.
Seasonal rentals and room rentals face tighter rules
The new measures also target the growing use of temporary and room-by-room rentals.
For a temporary rental, the landlord will generally have to identify and justify the genuine reason for the tenant's temporary stay. The legislation establishes a general framework under which temporary rentals run from a minimum of 31 days to a maximum of 12 months.
Room rentals are also addressed. The combined rent charged for individual rooms cannot exceed the rent that could be charged for the property as a whole, subject to the rules that apply in the relevant circumstances.
This could become an important issue in tourist destinations such as Lanzarote, where demand for short and medium-term accommodation has grown considerably.
Changes affecting holiday lets
Holiday accommodation is another major part of the package.
The new rules introduce a 10% VAT charge in specified circumstances for furnished accommodation, including where hotel-style services are supplied or where the stay does not exceed 30 nights.
Local authorities will also be able to apply an IBI surcharge to residential properties used as tourist accommodation. The surcharge can reach 50%, and can rise to 100% for owners with four or more properties being used for this purpose, subject to the legal conditions.
For Lanzarote holiday-home owners and the local tourism industry, this is an area to watch closely.
It is important to remember that holiday-let rules in the Canary Islands are also influenced by regional legislation and local planning and licensing requirements. The new Spanish measures do not simply replace the Canary Islands' existing rules, so owners should check the specific requirements applying to their property.
Tax changes for renters and landlords
The package also introduces tax incentives.
Tenants whose annual income is below €33,007.20 will be able to claim a new national income-tax deduction equal to 10% of the amount paid in rent for their main home, subject to the legislation's conditions.
There are also tax incentives for landlords who offer homes at affordable rents. In certain qualifying circumstances, the reduction in taxable rental income can reach 100%, particularly where a new contract involves a reduction in rent of more than 5% and other requirements are met.
The government says the idea is to encourage more homes to be placed on the long-term residential rental market.
More pressure on empty homes
Spain is also giving municipalities greater scope to discourage properties from being left empty.
Under the new measures, local authorities can apply IBI surcharges to certain long-term vacant homes. In some cases, the surcharge can reach 150%, including for owners with two or more homes that have remained empty for more than three years, where the legal conditions are met.
For areas struggling with a shortage of long-term rental properties, the intention is to encourage owners to make unused homes available to the residential market.
More public and affordable housing
The package also strengthens the role of CASA47, the state housing entity, which is intended to expand Spain's public and affordable housing stock.
The government has also announced funding to support industrialised housing construction and social-housing providers, with the aim of increasing supply rather than relying solely on controls on rents.
Why does this matter in Lanzarote?
Although these are Spanish national measures, housing is very much a local issue in Lanzarote.
The island has a large tourism economy, a substantial market for holiday accommodation and a growing demand for homes for people who live and work here. At the same time, residents can face competition for long-term rental properties from other forms of accommodation.
That means changes affecting holiday lets, seasonal rentals, long-term tenants and property owners could all have an impact on the local housing market.
For residents of Puerto del Carmen, Playa Blanca, Costa Teguise, Arrecife and other parts of Lanzarote, the practical effect will depend on the type of property, the type of rental contract and whether the home is used as a principal residence or tourist accommodation.
What should renters and landlords do now?
Tenants should not assume that every new protection automatically applies to every rental agreement. Check the type and date of your contract and seek professional advice if you are unsure about your rights.
Landlords and holiday-let owners should also check how the new national rules interact with Canary Islands and local regulations before making changes to a property or rental arrangement.
And anyone considering buying their first home in Lanzarote should watch for further details on the TU CASA financing scheme, particularly the eligibility criteria, application process and how the €50,000 maximum interacts with mortgage finance.
The bigger picture
Spain's housing crisis has become one of the country's most politically important issues, and the Government says these 21 measures are intended to address both affordability and supply.
The package is significant for renters, landlords, first-time buyers and the holiday accommodation sector. However, it is also a complicated set of measures, with different rules coming into effect at different times.
For Lanzarote, the key point is that the new Spanish housing measures could affect the island's property market, but they should not be viewed in isolation. Canary Islands regulations and local rules remain highly relevant, particularly for holiday lets and tourist accommodation.
As further guidance and implementation details emerge, property owners and tenants in Lanzarote should check the latest official information before making financial or legal decisions.
