Non-renewal compensation in Spanish rentals: calculation and exceptions

1.When does the right to compensation arise? From 15 Nov 2026

art. 10.1

When the ordinary-home contract or any extension has lasted at least five years — seven for a legal-entity landlord — and the landlord validly communicates non-renewal under the new article 10.1.

The landlord must give at least six months' notice. Without timely notice, the contract renews tacitly and compulsorily for successive five-year periods, or seven for a legal entity. The tenant retains two months' notice.

The rule applies to expiries after it enters into force. Tenant non-renewal does not trigger this compensation, which addresses landlord non-renewal.

2.How is the amount calculated?

art. 10.1

First obtain the upper value of the home's individual range in the state rental-price reference system. Use that monthly reference amount for two calculations.

Calculation A: twelve reference monthly amounts. Calculation B: one reference monthly amount for each year of residence, prorating shorter periods by months and by days. Compensation is the greater of A and B.

If no individual value can be obtained for the home, both calculations use the monthly rent current on the non-renewal notice date. Reference value and current rent are not interchangeable by preference: current rent is the fallback when the individual value is missing.

Payment is made on handover of the home, except where a needs-based home is not occupied for three months, in which case compensation becomes due after that period.

3.What if I can request a mandatory extension?

art. 10.1art. 10.5art. 10.6

Compensation does not apply when, for that expiry, you meet the requirements to obtain a legal extension that the landlord must accept upon request, but you do not request it.

If you request it and it applies, the right to compensation is deferred until the extension ends. It then becomes payable if no article 10.2 exclusion applies.

This links compensation with vulnerability and stressed-area extensions: do not decline a protection without understanding its effect on compensation.

4.When is compensation excluded?

art. 10.2

Compensation does not apply in the article 10.2 cases, which must be stated expressly, in detail and in writing in the notice:

• Need: the landlord is a natural person who needs the home as a permanent residence for themselves, relatives up to the second degree by blood or adoption, or their spouse after a final separation, divorce or annulment judgment. If it is not occupied within three months, unless force majeure applies, compensation becomes payable.
• No effective residence: the tenant has not lived in the home for more than six months in the preceding twelve, unless the absence is justified by health, work, studies or family care, or the people in article 7.1 remain there.
• Another suitable home: the tenant has another suitable home in the same municipality, in full ownership or with a real right of use or enjoyment, and can occupy it.
• New contract: the parties sign a new ordinary-home lease.
• Rejected offer: the tenant expressly or tacitly rejects a reliable offer made during the notice period for a new contract on the same home, guaranteeing five or seven years and rent compliant with article 17.6 even outside stressed areas.

5.What if the landlord sells the home?

art. 10.1

Sale does not remove the right to compensation. It falls to the buyer who steps into the landlord's position, unless an article 10.2 exclusion applies.

If the landlord gives non-renewal notice but the parties ultimately agree to continue, the voluntary extension cannot be shorter than five or seven years. Terms worsening the original contract for the tenant are void (articles 10.3 and 10.4).

6.Which transitional rules change the outcome?

Valid non-renewal notices served before RDL 28/2026 was published on 7 October 2026 remain effective and create no compensation, even if an extraordinary extension later applies.

If less than six months remains until expiry when the rule enters into force, the landlord may give four months' notice instead of six. Contracts already in a previous yearly extension complete it under the old rules.

Contracts in tacit reconduction move to the new article 10 at the first expiry after it takes effect. Time under the original contract and tacit reconduction counts toward duration. Earlier valid communications ending reconduction create no compensation.

7.The law behind this guide

The new article 10 comes from Royal Decree-law 28/2026 and enters into force on 15 November 2026, subject to validation by Congress. The calculation reference must be obtained from the state price system; current rent is only the fallback when no individual value exists.