Spain’s government has revived a package of rental and eviction protections after the removal of 87-year-old Maricarmen Abascal from the Madrid flat where she had lived for 71 years drew public attention to the country’s housing crisis.
The main housing decree, Royal Decree-law 26/2026, was published in Spain’s Official State Gazette (BOE) on 29 September. It adopts urgent measures to protect the social function of housing and increase the supply of affordable homes.
The Council of Ministers also approved a second housing decree-law, covering the automatic renewal of residential rental contracts. Both decrees are expected to go before the Congress of Deputies for validation on Friday, 2 October. The measures depend on parliamentary approval, which is not guaranteed.
Maricarmen Abascal’s eviction and protests in Madrid
Maricarmen Abascal was forced to leave her home under a court order after her landlord introduced a rent increase she could not afford when a long-standing rent cap expired.
Hundreds of protesters set up a camp in central Madrid in support of Abascal. Her landlord, Urbagestión, is described by the Financial Times as a small Spanish company and rejected being called a “vulture fund”.
The newspaper reported that Abascal, who was in hospital following her eviction, accepted an offer that would allow her to return to the flat. The agreement was brokered by Madrid city council and would allow her to pay around €500 per month, close to her previous rent and below market rates for the neighbourhood.
Housing Minister Isabel Rodríguez said the government’s housing package would stop purchases by “vulture funds” to halt speculative buying. The published decree, however, sets a price restriction rather than a blanket ban on investment entities buying residential property.
Eviction protection until 2030
Royal Decree-law 26/2026 would again suspend evictions of vulnerable people who do not have alternative accommodation until 31 December 2030. The protection had previously ceased to apply after an earlier housing decree was not validated by Congress in April 2026, according to idealista/news.
2% cap on rent rises returns
The main decree would reinstate a maximum 2% annual increase for existing rental contracts. If Congress validates the decree, the limit would remain in place until 31 December 2027.
It also includes a two-year extraordinary extension for rental agreements that are in force and due to expire before 31 December 2028. The extension would also apply to leases in tacit renewal, provided the tenant is up to date with rent payments.
What the decree means for “vulture funds”
The new decree does not introduce a general prohibition on investment funds buying homes.
Instead, until 31 December 2028, it prevents certain entities from acquiring homes, occupied properties, completed residential buildings and mortgage portfolios for less than 70% of their market appraisal value. Properties intended for social rental housing are exempt.
The decree identifies the entities affected, commonly referred to in the debate as “vulture funds”, as organisations with or without legal personality whose corporate purpose includes acquiring property for payment.
In practice, those entities would still be able to purchase residential property if they pay at least 70% of its market appraisal value.
A vote on Friday will decide the measures’ future
The government requested an extraordinary congressional session for the immediate validation of the two decree-laws on 2 October.
Parliamentary support is uncertain. The Financial Times reported that Junts per Catalunya has expressed concern that the restrictions on investment-fund purchases could unfairly affect small landlords investing their personal savings.
The earlier housing decree was rejected by Congress in April, ending the previous rent cap and extraordinary rental extension after little more than a month in force.
The outcome of Friday’s vote will determine whether the new eviction suspension, rent cap, rental extension and property-purchase restrictions remain in force.
