Thinking about buying or renting a home in Spain? Whether you're looking for a holiday retreat or planning a full-time move to the stunning Hondon Valley, it's essential to stay up to date with the latest property law changes. 2025 is bringing some major updates that could impact landlords, tenants, and property buyers alike. So, what do these changes mean for you?

Property Prices – Still on the Rise?

If you're hoping for a property price drop, you might be out of luck. Despite government efforts to improve affordability, demand still outstrips supply, especially in coastal areas like the Costa Blanca. This means prices are expected to keep rising. Could this be the right time to buy before they climb even higher?

Renting in Spain – Big Changes Ahead

Thinking of renting out your property? Or perhaps you're planning to rent before buying? The rental market has been overhauled, and here’s what you need to know:

• Longer Contracts – Rental agreements can now last up to five years, with tenants having the right to extend for another five. A positive for those looking for long-term security, but will it make renting more competitive?
• New Rent Adjustment Rules – From January 2025, a new index (IRAV) will cap rent increases based on inflation trends over the past one, three, or five years. Could this make renting in Spain more predictable?
• Landlords Cover More Costs – Landlords must now pay all agency fees and rent default insurance, making renting more affordable for tenants but adding costs for property owners.
• Tighter Rules for Large Property Owners – If you own five or more properties in high-demand areas, expect stricter regulations.
• Tax Incentives for Landlords – If you rent out a newly renovated property or to tenants in "stressed" areas, you may qualify for tax reductions. Could this encourage more long-term rentals?

Tax Changes – What’s New?

Nobody likes surprise tax increases, so here’s what’s coming in 2025:

• New Rubbish Tax – From April 2025, Spain will introduce a nationwide rubbish tax. How much you’ll pay depends on your local area.
• Property Tax (IBI) Adjustments – Rates will change across Spain, with some areas seeing increases and others, like Madrid, seeing reductions.
• Empty Property Surcharge – If you own multiple properties and leave one vacant for over two years, you could face a 150% IBI surcharge. Is this Spain’s way of tackling housing shortages?
• Tourist Rental Crackdown – Community approval is now required for tourist rentals, along with stricter rules and higher taxes. Could this make short-term lets less attractive?

Squatter and Eviction Laws – Faster Evictions on the Way

If you've ever worried about squatters, there's some good news. Spain is introducing a fast-track eviction process:

• Quick Squatter Evictions – A new law will allow squatters to be evicted in just 15 days, with police intervention clarified, especially in the first 48 hours.
• General Eviction Rules Stay the Same – Regular evictions still follow the 2023 Housing Law. Landlords are encouraged to consult legal experts for advice.

Could this help protect property owners from unwanted occupiers?

Buying Property in 2025 – What’s Changing?

If you're looking to buy in Spain, take note of these upcoming changes:

• End of the Golden Visa – The Golden Visa program, which allowed non-EU citizens to gain residency by investing €500,000 in Spanish property, will end on April 3, 2025. Could this slow down the market?
• Possible Restrictions on Non-EU Buyers – There’s a proposal to ban non-EU foreigners from buying property unless they plan to live in Spain. However, this is still under debate, and regional governments may oppose it. If passed, could it make buying property in Spain trickier for some expats?

What Do You Think?

These changes show that Spain is trying to balance tenant protections, housing affordability, and property owner rights. But will these new rules make buying and renting easier or more complicated?

If you’re planning a move to the Costa Blanca or the Hondón Valley, do these updates affect your decision? Would you feel more secure renting with longer contracts, or are you worried about tighter tax regulations?

Let us know your thoughts in the comments below!