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Spain rent decree stalls on party split

3 min read
10:02UTC

Podemos leader Ione Belarra threatened on 8 July to sink Spain's housing decree over landlord IRPF tax breaks, pushing the July target to end-August as June data showed Madrid and Barcelona rents cooling.

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Key takeaway

Spain's seasonal-rental decree stalls on a Podemos-Junts fight over landlord tax breaks, slipping to end-August.

Podemos secretary-general Ione Belarra said on 8 July her party would not back Spain's housing decree, actively or passively, if it grants landlords personal-income-tax (IRPF) deductions for cutting rents 1. Junts, the Catalan party whose seven seats the government needs for a 176-vote majority, demands exactly those deductions. One decree now has to satisfy two parties pulling in opposite directions.

The Ministry of Consumer Affairs said the same day it was convinced the decree would pass before the end of August 2, which concedes that the July target set on 29 June has slipped. Spain's state gazette, the Boletín Oficial del Estado, carried no decree text on either 8 or 11 July 3. Temporada lets, seasonal contracts of nine to eleven months that sit outside standard tenancy protection, stay legally open while the parties argue over who pays.

June rent data cut against the urgency. Idealista put the national average at a record €15.3 per square metre, up 4.2% year on year 4. Madrid decelerated to +7.6%, down from the +17.9% recorded to April , even as its absolute price reached €23.7. Barcelona fell 3.9% to €23.0, one of only four Spanish capitals where rents dropped, alongside the cruise-tax and licence stack its mayor built last spring .

Spain's hottest markets are cooling just as the tool meant to cool them stalls on who-pays politics. The Supreme Court voided the national short-term-rental (STR) registry in May , and INE's tourist-housing count has since edged back up , pushing supply toward the temporada channel the decree has not closed. Passed in September, it would be legislating against last year's problem.

Deep Analysis

In plain English

Spain's government wanted to pass a new housing law by July to close a loophole: landlords are increasingly offering short seasonal leases instead of normal rental contracts, because seasonal leases escape the rent caps that apply in high-price areas. To get the law through parliament, the government needs support from two smaller parties who each hold the balance of power. One of them, Junts, will only vote yes if landlords get a tax break (a deduction from IRPF, Spain's income tax) for cutting rents. The other, Podemos, refuses to vote yes if that tax break is included, because it sees it as a giveaway to landlords. With neither side moving, the law has slipped from a July target to end of August, while rents keep rising fastest in Madrid and are actually falling in Barcelona.

Deep Analysis
Root Causes

PSOE's minority coalition needs both Junts's seven seats and Podemos's backing to pass non-budgetary legislation, and the two partners want opposite things from the same clause: Junts will not vote for the decree without landlord IRPF deductions, and Podemos will not vote for it with them.

Layered on top, Spain's Ley de Vivienda rent caps apply only to standard leases in zonas tensionadas, leaving temporada (seasonal) and room rentals outside the cap entirely, which is the specific gap the stalled decree was meant to close.

First Reported In

Update #10 · Spain's rent decree stalls on coalition rift

Moncloa.com / idealista news· 11 Jul 2026
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