Royal Decree-Law 29/2026: Tax changes and measures concerning evictions

Royal Decree-Law 29/2026 introduces tax and judicial measures intended to encourage affordable rentals and protect people in vulnerable situations, including in Catalonia.

In taxation, personal income tax (IRPF) incentives are expanded for owners who let their properties as primary residences and meet certain conditions, particularly when they offer affordable rents. Reductions may reach 100% of positive net rental income. A national tax deduction for tenants of up to 10% of amounts paid is also established, subject to eligibility conditions and income limits.

As for property taxes, municipalities may apply surcharges to the property tax (IBI) on certain vacant homes and properties used for tourism in high-pressure housing areas. The taxation of some tourist rentals is also amended, making them subject to 10% VAT.

In judicial proceedings, measures provide for suspending evictions of vulnerable people without alternative accommodation, but their application is not automatic and depends on the legal requirements and circumstances of each case.

One particularly significant change is the potential assumption by public authorities of a tenant's debt, but only in certain eviction proceedings for non-payment, where financial vulnerability is established and the specific situation under Article 2.1 of the decree does not apply. In such cases, the authorities have two months to offer suitable alternative housing or pay the debt and court costs in full. If they do neither, they assume the tenant's position as debtor, the eviction cannot be enforced, and the lease remains in force until its expiry while the vulnerability persists.

Therefore, not all evictions are suspended and the authorities do not automatically assume tenants' debts in every case. Each case and the statutory requirements must be examined individually.

In Catalonia, these measures must be applied alongside regional housing legislation. Royal Decree-Law 29/2026 was ratified by the Standing Committee of the Congress of Deputies on 12 November 2026, according to the resolution published in the BOE on 13 November 2026 (BOE-A-2026-23755).