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Spain Extends Rent Caps to Seven More Municipalities Including Santiago de Compostela

The government’s BOE declaration triggers three‑year corrective plans, activates tenant safeguards, and unlocks larger grants from the national housing plan.

Overview

  • The Ministry of Housing published the decree in the Boletín Oficial del Estado on Wednesday adding seven zones—Santiago de Compostela, parts of Gijón, Avilés, Llanes, Gozón, Cabrales and Basauri—bringing the total to 317 municipalities that cover about 9.3 million people.
  • The measures take effect on Thursday, July 30, and require new rental contracts in declared areas to reference the previous contract price while barring new tenants from being charged fees that did not appear in the prior lease.
  • In Santiago the rule treats owners of five or more homes as 'grandes tenedores' for municipal enforcement, and new rents for those owners must respect limits set by the state reference index.
  • Declared municipalities must adopt urgent three‑year plans to expand rental supply and can access higher aid from the Plan Estatal de Vivienda 2026–2030, including larger per‑square‑metre support for public rental promotion and bigger purchase subsidies for social housing.
  • Political reactions split: Santiago’s mayor and the central government welcomed the step as a tool to contain sharp rent rises, while the Xunta warned the controls can cut new contract registrations; early implementation and whether supply responds remain the key things to watch.