Investment approach
Selling a flat with a tenant: what the seller needs to know in 2026
The tenant may buy the flat first and has 30 days to reply. From October 2026 that right cannot be waived in advance, and the buyer inherits the future compensation for non-renewal.
Selling a flat with a tenant means selling it together with the lease in force, and the tenant has the right to buy the flat first. The tenant has 30 calendar days to reply, counted from the moment the price and main terms are properly communicated (art. 25 LAU). The LAU is the Ley de Arrendamientos Urbanos (Urban Leases Act). Since 8 October 2026, Real Decreto-ley 29/2026 (BOE) has prohibited agreeing in advance to waive this right; Congress has not yet validated the decree-law.
What the buyer gets together with the flat
The buyer steps into the landlord's position. Under article 14 of the LAU, the buyer is bound by the lease for at least the first five years of its term, seven if the previous landlord is a company, and those years are counted from the start of the lease, not from the sale. If the lease was signed for a longer term, the buyer is bound for the whole term, unless protected by article 34 of the Ley Hipotecaria (Mortgage Act) as a good-faith purchaser: in that case the buyer only has to tolerate the lease up to five (seven) years, and the seller pays the tenant one month's rent for each remaining year beyond that period.
From 15 November 2026, Real Decreto-ley 28/2026 (BOE) adds a further rule. After five (seven) years, a lease of a main residence is extended for another five (seven) unless one of the parties gives notice that it does not want that. An owner who refuses to extend, outside the cases listed in the law, pays the tenant compensation: the larger of two amounts, twelve months' rent at the upper limit of the state reference index for that flat, or one month's rent for each year of residence. The decree-law states expressly that on a sale this obligation passes to the buyer. Congress has not yet validated the decree-law.
How to notify the tenant and how long to wait
The notice must be fehaciente, that is, given in a way that lets you prove it was received, and it must state the decision to sell, the price and the main terms of the deal.
| Step | Deadline or requirement | LAU provision |
|---|---|---|
| Tenant's right to buy first (tanteo) | 30 calendar days from the day after notification | Art. 25.2 |
| Validity of the notice | Expires after 180 calendar days | Art. 25.2 |
| Sale together with other properties | The notice gives the price of this flat and the objective criteria used to calculate it | Arts. 25.2 and 25.7 |
| Right to take the flat from the buyer (retracto) | 30 calendar days from the buyer's notice with a copy of the escritura (deed of sale) | Art. 25.3 |
| Registration of the purchase | The notices must be shown to have been given; if there is no lease, the seller states so in the escritura | Art. 25.5 |
Retracto arises if no notice was given, if the notice lacked required details, or if the real price turned out lower than the one given to the tenant. That is why the buyer and the buyer's bank will check the notice before signing. If the deal drags on for more than 180 days, the notice is repeated.
Leases signed before 8 October 2026 may have contained a waiver by the tenant of the right of first refusal, because the law then allowed it. Whether such a waiver still works after the change to article 25.8 is for an abogado (lawyer) to decide from the text and date of the lease.
What a sale with a tenant costs the seller: a worked example
Worked example, not a forecast. Rent of 1,200 € a month, a lease signed for ten years, two years gone. If the buyer is protected by article 34 of the Ley Hipotecaria, the buyer must only tolerate the lease until the end of the fifth year. For years six to ten the seller pays the tenant one month's rent per year: 5 × 1,200 € = 6,000 €.
The second effect is indirect. Suppose the upper limit of the state index for the flat is 1,300 € a month and the tenant has lived there for eight years. Compensation for non-renewal under RDL 28/2026 would be the larger of 12 × 1,300 € = 15,600 € and 8 × 1,300 € = 10,400 €, that is, 15,600 €. It is the buyer who pays it when deciding not to extend the lease, and the buyer will build that sum into the offer price. To assess how a lease and its terms move the price, use the property value analysis.
What options the seller has
There are four options, and they are chosen before the flat goes on the market.
- Sell to the tenant. The question of the right of first refusal disappears, because the tenant is the buyer.
- Sell to an investor with the lease in place. That buyer looks at the rent against the market and at the time until the flat is free; the logic is covered in the article on buying a flat with a tenant.
- Agree with the tenant on early termination by mutual consent and sell the flat empty to people buying to live in it. An abogado prepares the terms of the agreement.
- Wait for the lease to end. Dates matter here: under the transitional provision of RDL 28/2026, non-renewal notices that the owner lawfully sent before the decree-law was published on 7 October 2026 remain valid without compensation. If on 15 November 2026 less than six months remain until the lease ends, notice can be given at least four months before the end date.
If the building has several rented flats, or the whole building is for sale, the vacancy schedule is worked out flat by flat, see a building with tenants. If the flat also carries a mortgage, repayment and cancellation of the registry entry are prepared in parallel, see paying off the mortgage before a sale.
When selling with a tenant does not fit
This kind of sale suits poorly a seller who needs the highest price from a buyer who wants the flat to live in: a family that wants to move in straight away will not consider a flat with a tenant. It also does not fit an urgent sale: the 30 days for the tenant to reply, the check of the notice by the buyer's bank and the risk of retracto all lengthen the deal.
Questions and answers
Can I sell a flat if a tenant lives in it?
Yes. The lease continues with the new owner, and the tenant may buy the flat first on the same terms within 30 calendar days after the notice.
What happens if the tenant is not notified of the sale?
The tenant gets the right of retracto: to take the flat from the buyer on the terms of the deal. The 30 calendar days run from the moment the buyer notifies the tenant of the terms and hands over a copy of the escritura.
Can the tenant agree to waive the right of first refusal?
Not since 8 October 2026: RDL 29/2026 prohibited such a waiver. What happens to a waiver written into an earlier lease depends on its text and date, and that is a question for an abogado.
Who pays the tenant compensation for non-renewal after a sale?
From 15 November 2026, under RDL 28/2026, the obligation passes to the buyer if the buyer refuses to extend the lease and no exception in the law applies. Congress has not yet validated the decree-law.
