Annual rentals in Benidorm: what the new housing decrees change
If you own a rented property or are considering letting one, the latest news may raise questions: can I update the rent, what happens when the contract ends, and does signing for just one year change the rules? Decisions should start with the relevant dates and the individual contract.
Two decrees, two different dates
Royal Decree-laws 29/2026 and 28/2026 were published on 7 October. The first generally entered into force on 8 October; the second sets 15 November as its effective date. As at 26 October, the latter's new rules do not yet apply. Their continuing validity must also be checked in light of parliamentary ratification. [1, 2, 4]
1. A one-year agreement does not determine the entire legal duration
What matters is the residential need the tenancy meets. If the property is the tenant's habitual home, the written term is subject to statutory duration and extension rules. Calling it an “annual rental” or specifying eleven months does not make it a temporary letting: that requires a genuine, demonstrable temporary purpose. The signing date and the rules applicable to each contract are essential. [3]
2. Updating rent means checking several limits
Until 31 December 2027, the extraordinary regime under RDL 29/2026 prevents increases when the applicable reference-system maximum is exceeded. In other cases, it provides for a new agreement and, in its absence, a 2% limit. The contractual clause and other concurrent legal limits must also be respected, including IRAV where applicable. The 2% figure does not authorise an automatic increase. [1, 3]
3. Some contracts may continue for up to two additional years
RDL 29/2026 allows an extraordinary annual extension, up to two years, to be requested for contracts in force when it took effect, in the specified expiry situations. If requested at the end of the mandatory extension period, that period must end before 31 December 2028. Tenants must be up to date with rent and have paid on time each month during the preceding eight months. It requires a request and does not cover every contract: exceptions and incompatibilities with other extensions apply. [1]
4. What is planned for 15 November
RDL 28/2026 provides for successive five-year extensions, or seven years where the landlord is a legal entity, after the relevant minimum duration, unless valid notice is given. It establishes a general notice period of six months for the landlord and two for the tenant. It also provides compensation for certain non-renewals, with exceptions and its own calculation rules. Transitional provisions protect certain earlier notices and preserve notice periods for some imminent expiries: no single rule can be applied to every case. [2]
What this means in practice for both parties
For landlords, the immediate management implication is planning: record expiry dates, review the rent-update clause and assess notices before sending them. If you expect to need the property yourself, examine from the outset how that fits the contract and applicable law.
For tenants, keep contracts, receipts and correspondence, check the conditions for any extension and submit requests in the appropriate form. Contractual stability and compliance with agreed obligations must be considered together.
The effects on supply and prices cannot be assumed simply because legislation changes. From a property-management perspective, the immediate priority is closer attention to each transaction's documentation and timetable.
Thinking of letting your property in Benidorm?
Contact Inmobiliaria Núñez for information about managing your rental. Good preparation starts by defining the property's intended use and organising the paperwork before signing. Legal decisions about a particular contract require an individual assessment.
General information checked on 26 October 2026. Dates, transitional rules and parliamentary proceedings should be checked again if publication takes place later.
Official sources consulted
[1] Real Decreto-ley 29/2026 — disposiciones finales quinta, sexta y decimoprimera; LAU
https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20823
[2] Real Decreto-ley 28/2026 — artículo único, disposición transitoria única; entrada en vigor
https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-20822
[3] Ley de Arrendamientos Urbanos (LAU)
https://www.boe.es/buscar/act.php?id=BOE-A-1994-26003
[4] Congreso de los Diputados — control de los decretos-leyes
https://www.congreso.es/cem/tit6