Decrees debated hours before campaign launch

The Permanent Deputation of the Congress of Deputies meets today, Thursday 12th November 2026, to debate two housing decrees approved by the Council of Ministers last month. The session takes place just hours before the official start of the general election campaign for the 29th November poll. The two Royal Decree-laws, first approved on 6th October 2026 and republished in the Official State Gazette (BOE), must now be ratified by the Permanent Deputation, the body that maintains parliamentary functions after dissolution, to enter into force. Without ratification, they will lapse.

Key measures in the housing package

The main decree extends protection against evictions for vulnerable people until 31st December 2030, particularly when no alternative housing is available and the property is owned by so-called 'vulture funds'. Judicial evictions can be suspended even if a court order exists, provided the eviction has not yet taken place. Rent controls are also strengthened: increases are capped at 2% for most contracts, while those already above state reference price limits are frozen until the end of 2027. Tenants in contracts expiring before 31st December 2028 may benefit from an extraordinary two-year extension, a measure the Ministry of Social Rights estimates could affect 1.9 million contracts and benefit around five million people. The decree also introduces a 10% VAT on tourist apartments and reduces VAT on the construction of public and protected housing to 4%. It includes new tax deductions for tenants earning under approximately €33,000 and incentives for landlords who moderate rents. A major new instrument, 'Tu Casa', establishes a €10 billion public loan line offering interest-free loans of up to €50,000 for first-home buyers who can afford mortgage payments but lack down payment savings. The scheme is managed by the Official Credit Institute (ICO) and is designed to support all generations, though particularly targets young people's independence challenges.

  • Eviction protection until 2030 for vulnerable tenants
  • Rent increases capped at 2%, freezes for high-rent contracts
  • Two-year lease extensions for contracts ending before 2028
  • €10 billion in 0% loans for first-home down payments
  • 10% VAT on tourist apartments, 4% on public housing construction

'Maricarmen decree' faces uncertain fate

The second decree, dubbed the 'Maricarmen decree' after the eviction of 87-year-old Mari Carmen in Madrid that sparked national protests, aims to extend rental contracts indefinitely with five- or seven-year renewals and require compensation if landlords choose not to renew. Its entry into force was scheduled for 15th November 2026. However, its approval is uncertain. While PSOE, Sumar, ERC, Bildu, PNV, and Podemos together hold 35 potential votes, the PP, Vox, and Junts oppose it with 34 votes. The PNV has confirmed it will vote against this second decree, likely dooming its passage.

The case of Mari Carmen became a symbol of the housing crisis and the need for stronger tenant protections.

The PP has criticised the process, calling it a "democratic nonsense" through national spokesperson Borja Sémper, noting the same measures were rejected by Congress on 2nd October 2026.

Speculative purchases restricted until 2030

The decrees also extend until 2030 restrictions on speculative housing purchases by vulture funds and large holders buying properties for less than 70% of their market appraisal value. Exceptions apply for public entities, social housing providers, and purchases intended for affordable or socio-health housing. Entities must provide an independent valuation registered with the Bank of Spain to justify the purchase price. The rule aims to prevent the acquisition of distressed properties at bargain prices for later profit. The Government presented the measures as a direct response to rising housing insecurity and public mobilisations, including a general strike on 11th November 2026.

Sources: La Sexta Barcelona, elconstitucional.es.