Since it came into force in May 2023, the Ley por el Derecho a la Vivienda has generated considerable anxiety among property investors — particularly overseas landlords. Some press coverage spoke of sweeping rent controls, near-permanent eviction bans, and punitive taxes on empty homes.

The reality is more nuanced — and for a landlord in Valencia, considerably more reassuring. Here is a clear reading of what the law changes, what it does not change, and how it applies in the Valencian Community specifically.

01What the Ley de Vivienda 2023 actually is

The Ley 12/2023 por el Derecho a la Vivienda is a national framework law. It does not apply uniformly across Spain: it creates tools that regional governments (Comunidades Autónomas) can choose to activate or not. This is the fundamental distinction that much of the commentary missed.

Specifically, the law:

• Creates the concept of “stressed residential market zones” (zonas de mercado residencial tensionado) — but declaring them is each region’s responsibility
• Caps in-tenancy annual rent reviews via a new INE index, replacing the CPI
• Strengthens certain protections for socially vulnerable tenants
• Allows municipalities to apply a surcharge on IBI for persistently vacant properties
• Formally makes letting agency fees the landlord’s responsibility

02Rent regulation: what applies in Valencia

Stressed zones: a regional tool, not a national one

The most widely reported mechanism — rent caps — only applies in zones classified as “stressed” by the relevant regional government. This classification requires a formal request, validation and an official decree.

The Valencian Community has not declared any stressed zone to date. Not Valencia, not Alicante, not any other city in the region. In practice this means:

• The starting rent for any new tenancy is freely agreed between landlord and tenant
• There is no legal rent cap in Valencia in 2026
• The reference rent indices published by the government are purely indicative — not binding outside stressed zones

Annual in-tenancy review: the one real change

This applies everywhere in Spain, including Valencia. Since 2024, annual rent reviews during an existing tenancy are no longer linked to the CPI but to a new index created by the INE, capped at 3% for 2024. This is a real change, but limited: Spanish CPI had already fallen below 3% by 2024.

03What the law changes on evictions

The Ley de Vivienda 2023 did not create new grounds for blocking evictions for non-payment. It reinforced a mechanism that already existed: the temporary suspension of eviction where the tenant is recognised as being in a situation of social vulnerability and no rehousing option is available.

In practice:

• For a standard non-payment case without proven vulnerability, the procedure remains identical to pre-2023
• In social vulnerability cases, the municipality or social services can request an additional delay from the judge (typically 1–2 months)
• This mechanism only applies when the tenant proactively declares themselves vulnerable — which is uncommon in typical non-payment situations

Spain’s long eviction timelines are a structural feature of the judicial system — not a consequence of this law.

04Agency fees: the landlord pays

This is one of the most concrete changes in the law, and it applies in Valencia. Since May 2023, letting agency fees — finding a tenant, drafting the lease, check-in inventory — are entirely the landlord’s cost. They cannot be passed on to the tenant. Reputable agencies had already applied this practice before 2023, so for most landlords working with a professional agency, this changes little in practice.

05Vacant property tax

The law allows municipalities to add a surcharge on IBI (property tax) for properties that have been continuously vacant for more than 2 years — up to 50% surcharge at 2 years, up to 150% beyond 3 years. Key points:

• This surcharge is optional for municipalities — they must actively choose to apply it
• It targets properties vacant for over 2 years without legitimate reason — excluding properties under renovation, in probate, between tenancies, etc.
• Valencia city council has not systematically applied this surcharge to date
• A property in management, even if temporarily vacant between tenants, does not fall into this category

06Summary table: what applies or not in Valencia

07What this means in practice

For an overseas investor letting a property in Valencia in 2026:

• Your rent is still freely set at the start of the tenancy — you price at market rate
• In-tenancy annual reviews are capped at the INE index — factor this into your yield projections
• Letting costs are your responsibility — budget for them upfront
• Eviction procedures remain long — all the more reason to take out rent guarantee insurance at the start of the tenancy
• No rent caps, no stressed zones — Valencia remains one of Spain’s most landlord-friendly cities

The Ley de Vivienda 2023 is a framework law that gives regions the tools to regulate — it does not fundamentally change the situation in Valencia as long as the Valencian Community does not declare a stressed zone. Which is not currently on the agenda.

Frequently asked questions

This article is for informational purposes and reflects regulations in force in Valencia in early 2026. The situation may change if the Valencian Community modifies its position on stressed zones. It does not constitute personalised legal advice.