This law introduces several key measures. First, it allows certain markets to be declared “stressed areas” when demand clearly exceeds supply, enabling rent price limits in those territories. It also introduces tax incentives for those who rent their main residence at affordable prices: in some cases, rental income may benefit from significant reductions in personal income tax (IRPF).

It also revises the deadlines, rights, and obligations in rental contracts to give tenants more stability, reducing the insecurity caused by evictions and real estate speculation. Finally, and importantly, the law distinguishes between residential rental and short-term or tourist rental (which predominates in tourist regions such as the Balearic Islands or Marbella). Tourist rentals are not subject to the same protections as residential contracts, since they depend on the tourism regulations of each autonomous community and local ordinances.

In communities like the Balearic Islands —traditionally highly touristic— or coastal cities with strong vacation demand like Marbella, these regulations could have significant effects. Where short-term rentals dominate, the supply of permanent housing decreases, further tightening access for residents. The state regulation, by separating tourist and residential rental norms, emphasizes the need for local and regional legislation to balance economic, tourism, and social interests.

For residents in the Balearic Islands or Marbella, choosing a stable long-term rental over a tourist one can now bring tax advantages for landlords. This could encourage some owners to prefer long-term contracts instead of tourist exploitation, potentially increasing the availability of permanent housing. However, much depends on the owners’ willingness and the relative profitability of tourism compared to long-term rental.

Tenant protection has also been strengthened: more stable contracts, tax benefits for responsible landlords, and a clearer legal framework could reduce the risk of unfair evictions. This is especially relevant in high-demand areas, where prices and tourist turnover create constant pressure on the housing market.

Despite these advances, challenges remain. The coexistence of national, regional, and municipal regulations —particularly in areas like the Balearic Islands or Marbella— can create legal uncertainty and inequalities between municipalities. Moreover, not all property owners may accept tax reductions when more profitable alternatives exist, such as tourist rentals.

Another challenge is ensuring that controls and sanctions work effectively: defining stressed areas, preventing the illegal conversion of residential properties into tourist rentals, and adapting inspection systems. Without effective enforcement, the law risks becoming a symbolic gesture rather than a real solution.

Finally, one must ask whether these measures will be enough to curb the rise in rent prices, especially in areas with high tourist value or foreign demand. Expanding social housing, promoting local affordable housing policies, and coordinating efforts among the state, regions, and municipalities will be essential.

The Law on the Right to Housing and its recent reforms represent an important legal effort to guarantee access to decent housing in Spain, balancing the rights of tenants and property owners. In territories with strong tourism pressure —such as the Balearic Islands or Marbella— its application could help redirect part of the housing stock toward stable residential use, improve accessibility, and reduce tensions. However, its effectiveness will largely depend on owners’ willingness, local enforcement, and complementary policies that strengthen the supply of affordable housing.