Compensation for landlords and property owners in the event of the suspension of eviction, who may apply and how to do so

22 December, 2025
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Real Estate
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Amaia Forcada

!Compensación económica arrendadores

The extraordinary suspension of evictions, regulated by Royal Decree-Law 11/2020 of 31 March, has caused economic harm to many landlords and property owners. In order to compensate for this situation, the regulations recognise the right to apply for financial compensation when the Public Administration fails to provide a housing alternative within the established timeframe. In this article we explain who may apply, what may be claimed and until when.

Royal Decree-Law 11/2020 established the possibility for a tenant who is in a situation of economic vulnerability that prevents them from finding an alternative housing solution for themselves and the persons with whom they live, to request an extraordinary incident for the suspension of eviction within the framework of judicial proceedings initiated to recover possession of the property (Article 1).

Likewise, Royal Decree-Law 11/2020 recognised the power of the judge to suspend enforcement if the dwelling whose possession is sought to be recovered is occupied by an unlawful occupant in a situation of economic vulnerability, provided that the owner of the dwelling is a legal person, or a natural person owning more than ten dwellings (Article 1 bis).

The possibility of ordering the suspension of eviction, which was classified as an extraordinary and temporary measure, initially applied from the entry into force of Royal Decree-Law 11/2020, which took place on 2 April 2020, until 31 December 2022.

However, the validity of this measure has been extended on numerous occasions through different legislative instruments and is currently in force until 31 December 2025.

In turn, Royal Decree-Law 37/2020 of 22 December established the right of landlords and property owners affected by suspensions ordered pursuant to Royal Decree-Law 11/2020 to apply for compensation when the competent administration, within three months of the issuance of the social services report indicating the appropriate measures to address the situation of vulnerability by facilitating access to decent housing, has failed to adopt such measures (Second Additional Provision).

Article 3 of Royal Decree 401/2021 of 8 June regulates the procedure for the submission, processing and resolution of these compensation claims.

In the vast majority of judicial proceedings, the Public Administration does not adopt measures within the three-month period from the issuance of the social services report. As a result, most landlords and property owners affected by a suspension of this nature may apply for financial compensation for the duration of the suspension.

At Mes Advocats, we have successfully submitted numerous compensation applications throughout the entire national territory. Therefore, if you find yourself in this situation as a landlord or property owner, do not hesitate: read this article and contact us so that we can initiate your application as soon as possible, as the deadline to do so expires on 31 January 2026. You may request a quote through this link.

Who may apply for compensation due to the suspension of eviction as a result of the economic vulnerability of the tenant and/or unlawful occupant, and how?

Any natural or legal person who has initiated judicial proceedings against the tenant and/or unlawful occupant of a property with the purpose of claiming unpaid rent and/or recovering possession of the property.

However, in cases of unlawful occupation, it will be necessary to demonstrate that such occupation has caused economic harm because the dwelling had been offered for sale or lease prior to the unlawful entry into the property.

Where is the compensation application submitted?

To the authority competent in housing matters of the relevant autonomous community or of the cities of Ceuta and Melilla.

What documentation must be provided?

As a general rule, each autonomous community has its own specific form for applying for this compensation. In any case, it must be accompanied by a reasoned and duly justified statement of the compensation claimed.

What period is compensated?

The period between the decision ordering the suspension and the moment it is lifted by the court, or when the temporal limit of 31 December 2025 is reached.

It is important to note that the compensation will not cover the entire period during which the suspension existed. In other words, only the period that was effectively suspended after the court rules on the suspension will be compensated. Previously, the proceedings may have been stayed due to the processing of the suspension incident itself, from the moment the defendant requested it until the court was in a position to rule. This time will be excluded from the amount to be compensated to the owner or landlord (in this regard, among others, Judgments of the High Court of Justice of Madrid, Contentious-Administrative Chamber (Section 8), dated 19 February 2025 and 9 May 2025).

What items are subject to compensation?

The average value corresponding to the rent of a dwelling in the area where the property is located. This amount will be determined on the basis of reference indexes for residential rental prices (State System for Reference Rental Prices), or other objective references representative of the rental market.

In the case of leased dwellings, if this value is higher than the rent that the landlord had been receiving, the compensation will be calculated based on the rent.

In addition, whether the occupant is a tenant or an unlawful occupant, the ordinary housing expenses that the landlord or owner can prove to have borne will also be subject to compensation.

What is the maximum time limit for resolving the application?

The maximum period for resolving and notifying the applicant is three months. However, the competent authority may, with due justification, agree to extend the period by a further three months, which will be expressly notified to the applicant.

Once the maximum period has elapsed without express notification of a decision, the application may be deemed to have been upheld by administrative silence.

Until when may compensation be applied for?

At present, only until 31 January 2026, unless the Government decides to extend this measure again.

At MES Advocats we provide comprehensive advice and support to landlords and property owners, both in initiating judicial proceedings to claim rent and/or recover possession, and in the submission and processing of compensation claims. If you require further information or are interested in obtaining a quote, you may contact our real estate law department through this link.

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Landlords and property ownersCompensación económica arrendadoresLanzamientos y ocupantes ilegítimosProcedimiento judicial viviendaSuspensión desahucios RDL 11/2020

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