Still paying rent after your Spanish contract ended? Friday’s vote could affect you

A crucial vote on Friday could significantly impact thousands of Spanish renters, particularly expats, who have been paying rent after their contracts have ended. These landlords and tenants have been living under a legal arrangement known as "tácita reconducción," where the rental continues month-to-month without a formal new contract. When the initial term finishes along with extensions under the Urban Leases Act, the tenant is automatically granted a new tenancy, even without a signed agreement.

However, a second royal decree up for vote on Friday could alter this situation. The decree, if passed, would enable landlords to seek compensation of at least 12 months' rent from tenants who have been paying rent after their contracts ended. This payout would be granted using the state reference-price system, with a minimum payment of one month's rent for each year the tenant has lived in the property.

The current rules require a six-month notice period to end the tacit tenancy, but the new decree would reduce this to just four months after the decree has been in force for a period of four months.

Both the Junts (Catalonia) and PNV (Basque Country) parties have not yet committed to voting, which could sway the outcome. The decree is likely to face challenges and may not pass. This news is not just another housing headline for expats quietly paying their old rent every month; it could mean the difference between staying in a home with a rolling monthly stay and facing expensive legal consequences for ending the arrangement.