Renting in Spain in 2026: how it will affect landlords and investors
The 100% personal income tax (IRPF) relief on rental income announced by the Spanish government has once again brought the focus back to rental taxation and the decisions that landlords and investors must make.
The measure, still pending legal definition, aims to encourage rental stability and curb price increases. But what does this tax relief really mean? Who does it benefit? And how could it affect landlords and investors?
We explain it in a clear and practical way.
How does the 100% IRPF tax relief on rental income work?
The 100% personal income tax (IRPF) would allow landlords not to pay tax on rental income, provided they keep the rent unchanged when renewing the contract.
In practice, this would mean:
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- · No taxation on net rental income
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- · Replacing the current reductions (50%, 60%, 70% or 90%) with a 100% reduction 100%
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- · Applying only if the landlord does not increase the rent upon renewal
The aim is to fiscally compensate landlords for not applying rent increases.
Is it already in force?
No.
It is important to clarify this: it is not yet an approved law..
This is a political announcement that the government intends to implement through a Royal Decree-Law,which must:
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- 1. Be approved by the Council of Ministers
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- 2. Be published in the Official State Gazette (BOE)
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- 3. Be subsequently ratified by Parliament
Until this happens, the tax relief is not applicable..
Which landlords could benefit the most?
For many landlords, 100% personal income tax (IRPF) relief could represent a significant tax saving compared to a moderate rent increase. This measure would be aimed at:
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- · Individual landlords (private individuals)
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- · Properties rented as a primary residence
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- · Contracts that reach their expiry date and are renewed
The tax savings would be greater for:
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- · Landlords with medium to high incomes
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- · Rentals with stable income
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- · Situations where a potential rent increase does not outweigh the tax savings
Each landlord will need to run the numbers:
Is it more worthwhile to increase the rent, or to keep it unchanged and pay no IRPF?
Can it really make renting cheaper?
The government’s intention is clear: to curb rent increases when contracts are renewed..
However, the real impact will depend on several factors:
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- · How many landlords decide to opt in
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- · The gap between current rent levels and market prices
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- · The long-term stability of the measure
Most likely, it will:
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- · Help contain rent increases in existing contracts
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- · Have little or no direct impact on prices for new rentals
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- · Benefit current tenants more than those looking for a home
What should landlords and investors do now?
In the face of announcements like this, the most advisable steps are:
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- · Avoid making hasty decisions
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- · Wait for the measure to be approved and clearly defined
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- · Analyze each specific case with professional advice
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- · Consider renting as a medium- to long-term strategy
The rental market is becoming increasingly regulated and complex, making planning and professional management essential..
The 100% IRPF tax relief announced by the government could become a significant tax incentive for many landlords, but it is still pending development and approval.
If it ultimately comes into force, it will create a new scenario for decision-making regarding contract renewals and rental profitability.
At SKOR we help landlords and investors understand the legal, tax, and market context,and make informed decisions to rent with confidence and peace of mind.
