Particle.news
Download on the App Store

Santiago Designated Tensioned Housing Zone, Enabling Rent Caps

Regional approval triggers rent controls plus extra safeguards under Spain’s 2023 housing law.

Overview

  • After a revised bid that used official data showing rents up 40.2% since 2019, the Xunta confirmed the designation, making Santiago the second Galician city after A Coruña to face rent caps.
  • The measure will apply citywide for three years once it appears in Spain’s official state gazette, which City Hall says could take about two months.
  • The Xunta set “large landlord” in Santiago at five or more rental homes within the city, a tighter bar than the national default of ten.
  • New leases from large landlords and from homes left empty for five years must follow the state rent index, which sets the maximum price allowed.
  • For other owners, new rents are capped at the prior contract’s level after the yearly update, with up to 10% more allowed for major energy or accessibility upgrades or for 10‑year leases, and tenants can seek an extra lease term of up to three years.