Royal Decree to Protect Landlords from Unpaid Rent in Spain

Royal Decree Unpaid Rent Spain: New Government Measures to Protect Landlords

On 2 December 2025, Spanish President Pedro Sánchez announced a new Royal Decree focused on unpaid rent in Spain, designed to strengthen financial protection for landlords while improving access to long-term housing for young people and vulnerable families. This significant housing policy update aims to reduce landlord risk, increase rental supply, and stabilise the Spanish rental market.

The Government confirmed that this Royal Decree does not require approval by Congress, as it is not a Royal Decree-Law. It becomes effective once approved by the Council of Ministers and published in the BOE.

The Government will introduce a dedicated financial mechanism to compensate landlords for unpaid rent when tenants belong to priority social groups. The intention is clear: provide landlords with peace of mind while ensuring that young people and vulnerable families can access stable housing under fair conditions.

Who the Royal Decree Applies to

• Young renters participating in Government housing support programs
• Families officially classified as vulnerable
• Tenants included in public assistance initiatives
• Social rental schemes supported by the Spanish state

This measure strengthens rental confidence across premium areas such as Estepona East, the New Golden Mile, and other high-demand regions along the Costa del Sol.

For years, Spanish landlords have expressed concerns over unpaid rent, slow legal processes and tenant vulnerability. These risks have discouraged many property owners from renting out their homes, especially international investors who prioritise legal security.

By implementing the Royal Decree Unpaid Rent Spain, the Government aims to:

• Reduce default-related financial losses for landlords
• Encourage more owners to place properties on the rental market
• Strengthen tenant protections without harming property owners
• Balance the national housing ecosystem through a safer rental environment

Many landlords ask whether a Royal Decree needs parliamentary approval. The answer is simple:

No, a Royal Decree does NOT require Congress approval.

Only a Royal Decree-Law requires Congress validation within 30 days. A standard Royal Decree is approved directly by the Government and signed by the King.

This means the new measure is expected to be implemented faster and more efficiently than a traditional legislative reform.

Alongside the new rental support measures, President Sánchez highlighted a parallel commitment to accelerating procedures against illegal occupation in Spain. This includes legal reforms already moving through Parliament to modernise eviction protocols and reduce excessive delays.

Key updates expected from these reforms:

• Faster eviction procedures for clear cases of illegal occupation
• More streamlined coordination with law enforcement
• Greater legal certainty for homeowners and investors

Homeowners in these developments value strong legal protection given the high-value nature of their real estate assets.

The Costa del Sol already experiences strong demand for long-term rentals driven by international residents, digital nomads, and professionals relocating to Spain. The Royal Decree Unpaid Rent Spain is expected to benefit the region significantly.

Positive impacts for landlords:

• Higher confidence in renting to young families and support recipients
• Improved financial security with reduced risk of losses
• Greater interest from investors considering buy-to-let opportunities
• More dynamic and stable rental activity throughout 2025–2026

The decree could be especially beneficial for owners of premium apartments in developments such as Torre Bermeja, Cabo Bermejo and Las Dunas Park, where long-term rentals are increasingly in demand.

Although the announcement is official, landlords should note that the formal BOE publication will define exact procedures, including:

• Eligibility requirements for tenants and landlords
• Compensation limits and how they are calculated
• Documentation needed to request payment
• Regional application guidelines for autonomous communities

It is also advisable to maintain private insurance coverage until the administrative procedures are fully implemented.

At Livingstone Estates, we specialise in luxury properties, frontline beach apartments and exclusive gated communities across Estepona, Estepona East and the New Golden Mile. Our team provides tailored guidance on how new rental regulations may impact your investment strategy and rental profitability.

Our services include:

• Rental strategy and profitability assessment
• Premium tenant sourcing and background verification
• Full property management and maintenance
• Legal and tax coordination with trusted professionals
• Investment advisory for high-demand communities

View some of our key categories:

• Frontline Beach Properties for Sale
• Properties for Rent in Estepona
• Luxury Properties for Sale

The Royal Decree Unpaid Rent Spain represents a major step forward in balancing the landlord–tenant relationship and strengthening the rental market for years to come. If you own or are considering investing in property in Estepona or the New Golden Mile, our team is ready to assist with personalised, professional guidance.

Contact us today:

Livingstone Estates
Urb. Guadalmansa, Edif. Salinas Local 7
29680 Estepona – Málaga, Spain
Phone: +34 952 806 417
Email: info@livingstone-estates.com
Website: https://www.livingstone-estates.com