Spain plans to compensate landlords whose tenants stop paying, it has been announced – but not everyone will be covered.
The measure, revealed by Prime Minister Pedro Sanchez in a radio interview on Friday, will only apply to those who rent to young people or families declared ‘vulnerable’.
The move is one of the promises made to Catalan party Junts in exchange for its support of the PM’s investiture, which allowed him to form a government following the 2023 general election.
On Tuesday (December 9), the Spanish government will approve a new royal decree that includes the new financial protections for landlords whose tenants fall into arrears – specifically in rentals involving young people or vulnerable families.
Sanchez said the bill will also give town halls greater flexibility to invest in social housing, water infrastructure and other local developments.
The package will also extend deadlines for businesses adapting to new digital invoicing processes – another point negotiated with Junts that had yet to materialise.
But one of the standout measures is the creation of a compensation scheme for landlords facing unpaid rent.
Housing Minister Isabel Rodríguez confirmed that the decree will be approved at the December 9 cabinet meeting and enter into force before the end of the year.
Rodriguez framed the measure as a way to ‘provide guarantees and avoid fear-mongering narratives’ around rentals, though she did not specify how the compensation will be calculated.
Property sector specialists, however, argue the government is responding far too late, with one telling Cadena Ser: ‘Owners never asked for money, only the ability to rent without fear.’
It comes amid tense relations between the executive and Junts, after the Catalan party recently declared a ‘total rupture’ with the government and blocked budget-related votes in Congress.
Despite this, Sanchez insisted that the government is ‘advancing well’ on accelerating legal procedures to evict illegal occupiers, which was another Junts demand.
The PM said parliamentary work is progressing on a proposal to overhaul Spain’s legal framework on squatters.
The bill seeks to:
- Reform the Criminal Procedure Law to allow urgent precautionary eviction orders.
- Enable the recovery of a property within a maximum of 48 hours after a complaint is filed.
- Prevent delays caused by last-minute claims of vulnerability by squatters.
- Allow the offence of minor usurpation to be handled through immediate trial procedures.
PSOE has already indicated it will introduce amendments, but supports the core objective of speeding up evictions.
Read more Spain news at the Spanish Eye.
