What Happens to Corporate Housing When the Project Changes

Signing housing for a project team is the easy part. The hard part comes later: the project slips by three weeks, another one is cancelled, you need a second apartment, or the engineer who was meant to stay is replaced by a colleague.

Each of those situations depends on what you did — or did not — agree on the day you signed.

This guide is about the during: what happens to corporate housing in Madrid when the project changes, and what you should have nailed down beforehand.

It is written for companies, HR teams, project managers and relocation agents.

What to check before signing — VAT, transfer tax, who signs and what the price includes — is covered in our seven criteria before housing an employee, so we do not repeat it here.

A note on wording: “relocated” and “displaced” are used here in the everyday sense of a worker sent to Madrid for a project, not the legal regime for cross-border posted workers.

Disclosure: this guide is published by Nestic, which operates monthly apartments in Madrid. The general sections apply to any provider. What we do ourselves is kept in its own section, and every legal statement links to its source with the date we checked it.

This is general information and does not replace professional legal advice.

Key takeaways

Project housing is negotiated twice: when you sign and when the project changes.

To extend, get in writing how the extension works and how far in advance you need to request it.

To leave early, check the exit clause and what happens to money you have already paid.

For several apartments, consider using a framework agreement.

And if the employee occupying the apartment may change, make sure the contract expressly allows it.

What changes in the housing when the project changes?

Projects rarely run exactly to plan.

Four changes come up repeatedly:

• The stay gets longer.
• The stay gets shorter.
• The team grows and needs more apartments.
• One person is replaced by another.

Each one affects a different part of the contract: duration, early exit, number of units and identity of the occupant.

The contract should ideally answer four questions in advance.

If the project runs long

Can you stay? For how long? At what price?

If the project ends early

Can you leave early? With how much notice? What happens to what you have already paid?

If the team grows

Can you add apartments under similar conditions?

If the person changes

Can another employee move in without renegotiating the whole agreement?

A provider that answers these questions in writing before anything happens saves you from having to negotiate in a hurry with no alternative.

How do you extend a seasonal rental when the project runs long?

You extend it by agreeing the extension with the provider.

Ideally, this should be done in writing and before the original term ends.

A Spanish seasonal tenancy does not automatically renew by law in the same way as certain permanent residential leases.

Any extension also depends on availability.

If the apartment is already committed to another client after your departure date, the provider cannot simply extend the stay in that same property.

What does Spanish law say about extending a seasonal tenancy?

A seasonal rental is a tenancy for a use other than permanent housing under Article 3 of Spain’s Urban Leases Act, known as the LAU.

Under Article 4.3, these agreements are governed mainly by what the parties agree and, where no agreement exists, by Title III of the Act and, subsidiarily, by the Civil Code.

In practical terms, this means that what is written in the contract matters a great deal.

Two practical consequences follow from the consolidated BOE text, checked on 4 October 2026.

The compulsory extension rules for permanent residential leases do not apply

That regime belongs to Title II of the LAU.

For a seasonal tenancy, if both parties want to extend the stay, they must agree to do so.

Staying beyond the end date without agreeing anything creates uncertainty

Article 1566 of the Civil Code provides for what is known as tácita reconducción when a tenant remains in the property for fifteen days after the contract ends with the landlord’s consent.

To avoid uncertainty over duration, price or other terms, it is better to sign an addendum before the original contract expires.

A recent legal development in September and October 2026

On 29 September 2026, the Spanish Government approved Royal Decree-Law 26/2026, published on 30 September.

The measure amended Article 3.2 of the LAU and affected the treatment of seasonal tenancies.

However, Congress repealed the Royal Decree-Law on 2 October 2026.

As a result, as of 4 October 2026, the consolidated BOE text continues to show the previous regime.

The rules are changing quickly, so if you are about to sign or extend a contract, check the status of the law on that day.

What should you ask any provider so you can extend?

Before signing, get four things in writing.

How to request an extension

Who should be contacted, through which channel and with how much minimum notice.

At what price

Whether the rent stays the same, is adjusted or is renegotiated when the stay is extended.

What happens to the deposit

Whether the existing deposit continues to cover the extended period.

Article 36 of the LAU sets the statutory deposit at two months’ rent for leases for a use other than permanent housing.

How the extension is documented

Ideally through an addendum with the new dates and any revised conditions, signed by the same parties.

What if the apartment is already booked for those dates?

That is the main risk with any extension.

The apartment may already be committed to another client after your original departure date.

No clause can completely remove that risk unless the provider has expressly committed to keeping the property available for a specific period.

That is why it is worth asking two things:

• How far in advance they can confirm whether the apartment will remain available.
• What alternative they will offer if it is not.

For a project team, an equivalent alternative may matter more than staying in exactly the same property.

Another apartment in the same area, with a workstation and comparable conditions, may solve the operational problem.

Can you leave early if the project is shortened or cancelled?

It depends on what the contract says.

That is why the early-exit clause is one of the most important parts of the agreement.

In a seasonal tenancy, the parties’ agreement governs the relationship.

The withdrawal right under Article 11 of the LAU is designed for permanent residential tenancies and does not automatically apply to seasonal contracts.

Without an express early-exit clause, the tenant may remain liable for the full agreed term.

What should you check in any contract before you need it?

Before signing, make sure the following points are clear.

Notice

Is there a minimum period for notifying the provider that you are leaving?

Does notice have to be given by email, burofax or another channel?

Penalty

Is there any charge for ending the stay before the agreed date?

What happens to money already paid

Is any amount refunded for the unused period?

Or does the payment simply cover the period paid, regardless of the actual departure date?

The deposit

When and how is it returned?

Article 36.4 of the LAU provides that the refundable balance of the deposit earns statutory interest if it is not returned within one month of the keys being handed back.

Partial exit

If several people are being housed, can one person leave without renegotiating the rest of the accommodation?

If payment is made in advance, the risk of an unexpected departure may be losing amounts corresponding to time that will no longer be used.

If payment is made month by month, the main risk is usually the notice period.

There is no single best model. What matters is knowing exactly which one you are signing.

How do you house several teams or several apartments with one provider?

For several apartments, it can be useful to work under a framework agreement or a single commercial relationship.

Housing one team across five separate apartments with five separate contracts and five different invoicing processes multiplies the administration.

Ask whether the provider can treat the whole arrangement as one commercial assignment.

Framework agreement or one contract per apartment?

A framework agreement can set out the common terms:

• Price or pricing criteria.
• Notice periods.
• Extensions.
• Invoicing.
• Payment method.
• General occupancy rules.

Each apartment can then be added through an annex with its own dates, occupant and specific terms.

A separate contract per apartment may be simpler when only one or two units are involved.

As the number of apartments increases, a framework agreement can significantly simplify administration.

Ask whether the provider works this way or whether each unit requires a completely separate process.

How is the price set for several apartments?

Do not ask only how much it costs.

Also ask how the price is calculated.

Clarify:

• Whether the price is per apartment or per person.
• Whether it changes depending on the length of stay.
• Whether there is a different rate for several units.
• What happens if you add another apartment halfway through the project.
• Whether there is a tiered rate or whether each case is negotiated individually.

Do not assume there is a volume discount.

Some providers offer one and others do not.

How do you invoice a company with several apartments?

An invoice must correctly identify the recipient using the company’s full legal name and tax ID, under Article 6.1 of the Spanish invoicing regulations, approved by Royal Decree 1619/2012.

Also ask:

• Whether you will receive one invoice per apartment.
• Whether a single combined invoice with a breakdown is possible.
• Whether an internal project number can be shown.
• Whether cost centres, teams or departments can be separated where necessary.

Can you change the worker living in the apartment if the company is the tenant?

It can be done if the contract allows it.

When the company signs as tenant, the agreement can specify who is authorised to occupy each apartment and how occupant changes are communicated.

The safest approach is to identify the occupant and set out a simple mechanism for replacing them, for example by written notice.

That way, changing the employee does not necessarily require a completely new contract.

The law does not automatically provide this mechanism for every situation.

Article 32 of the LAU regulates certain assignment and subletting situations linked to business or professional activity, but it should not be assumed that it directly resolves the case of an apartment used as housing by employees.

Article 1550 of the Civil Code allows subletting where the contract does not prohibit it, but letting an employee use the apartment is not necessarily the same as subletting.

For that reason, it is safer to regulate occupant changes expressly in the contract.

What should be agreed about occupant changes?

Who may live in the apartment

Any employee designated by the company, or only specifically named individuals.

How the change is communicated

In writing, with a stated notice period and to a specific person or department.

Whether there is a cost

Ask whether each occupant change carries an administrative fee.

What documentation changes

It may be necessary to update:

• Building access details.
• Occupant information.
• Certain utility information.
• Internal documentation.
• Where relevant, the new occupant’s municipal registration.

Who signs, and in whose name should the invoice be issued?

When a company arranges accommodation for its employees, it is usually simpler for the company to appear as the contracting party and for the invoice to be issued directly in its name.

If the employee signs personally and the company reimburses them afterwards, accounting and internal spend control may become more complicated.

If an invoice is issued with incorrect details, it may need to be corrected through a corrective invoice under Article 15 of the invoicing regulations.

Before booking, confirm three things:

• That the company can be the contracting party.
• That the invoice will be issued with its legal name and tax ID.
• What VAT treatment applies.

The tax details — VAT, transfer tax and contract type — are covered in our seven criteria before housing an employee.

For the broader legal framework behind seasonal tenancies, see our guide to temporary rentals in Madrid.

For the HR perspective, see our legal and tax guide for relocated executives.

How do you manage corporate housing: through a website, a direct contact or a portal?

There are three common routes.

Booking through the website

This can work well for one or two straightforward reservations.

Direct contact

For several apartments, several months or special conditions, it is often more effective to work directly with a named person at the provider by phone or in writing.

Client portal

Some providers offer portals where companies can manage contracts, invoices or bookings.

Not all of them do.

If your procurement policy requires a portal, ask about it from the outset.

In our map of monthly rental companies in Madrid, we record what each provider publishes, with the date checked.

As a general guide:

One or two straightforward bookings: the website may be enough, provided the conditions are in writing.

A team or several apartments: a direct contact and a framework agreement are usually more practical.

Procurement requires a portal or deferred payment: confirm before the first meeting that the provider can meet that requirement.

What matters is having a named person you can contact when the project changes and using a channel that leaves a written record.

What does Nestic do when the project changes?

We operate 29 furnished apartments in Madrid, for stays of 1 to 11 months with a minimum stay of one month.

These are our current conditions and their limits.

What is not listed here, we do not promise.

Extension

You can request an extension at any time.

If the apartment is already booked for those dates, we look for another apartment that fits your team’s needs.

We do not guarantee that it will be the same apartment, and we do not promise availability.

Early exit

You can leave whenever you want and we do not charge a penalty.

Payment is made in advance, so amounts already paid cover the period paid for.

Several apartments

When one company needs several apartments, we set a price and adapt the proposal to the team’s needs.

Pricing is negotiated case by case.

Changing the occupant

When the company is the tenant, the apartment may be occupied by whichever employee the company designates, and the occupant can be changed.

Contract, invoice and how to work with us

The company can sign the contract.

We always invoice at 10% VAT.

Payment is monthly, except for stays of one month or less, which are paid in a single payment.

We accept:

• Card.
• Bank transfer.
• Direct debit.

All utilities are included.

All 29 apartments have an equipped workstation with:

• Height-adjustable desk.
• Ergonomic chair.
• Monitor.

Bookings can be made directly through the website.

For larger corporate agreements, call or write to us and we agree the terms directly with you.

Two limitations we state clearly:

We do not currently have a client portal.

We do not offer 30- or 60-day deferred payment terms.

We also operate only in Madrid.

If your needs fit, see Nestic for Business.

Frequently asked questions

How can I extend a seasonal rental because the project is delayed?

Agree the extension with the provider in writing and before the contract ends.

Ideally, sign an addendum with the new dates, price and any other changed conditions.

A seasonal tenancy does not extend automatically: it is governed mainly by what the parties agree under Articles 3 and 4.3 of the LAU.

The extension also depends on availability.

If the apartment is already booked, ask for an equivalent alternative with a similar location, workstation and terms.

Can a company rent several mid-term apartments for a team of workers?

Yes.

When several apartments are involved, a framework agreement with common terms and annexes for each apartment can be useful.

Each annex can specify the dates and occupant.

It is also worth agreeing in advance how the accommodation will be invoiced: separately per apartment or through a combined invoice with a breakdown.

Can the invoice be issued in my company’s name?

Yes.

Every invoice must identify the recipient by full company name and tax ID under Article 6.1 of the Spanish invoicing regulations.

If the company is arranging the accommodation, the simplest approach is for it to appear as the contracting party from the start.

Correcting an invoice later may require a corrective invoice.

Are there agencies or providers with a portal where companies can manage contracts and download invoices?

Some providers offer this kind of tool, while others manage corporate relationships through a direct contact.

Because client portals are not always clearly advertised on commercial websites, confirm this in writing before contracting.

Our map of monthly rental companies in Madrid records the public information available for each provider and the date it was checked.

Can I change the employee who occupies the apartment?

Yes, if the contract allows it and the company is the tenant.

It is worth putting in writing:

• Who may occupy the apartment.
• How a change is communicated.
• How much notice is required.
• Whether there is an administrative charge.

Do not rely only on general interpretations of the LAU. It is safer to regulate this expressly in the contract.

Is there a penalty for leaving earlier than planned?

It depends on the contract.

The withdrawal right under Article 11 of the LAU does not automatically apply to a seasonal tenancy.

Without a specific exit clause, you may remain liable for the full agreed term.

Before signing, check:

• The notice period.
• Any penalty.
• What happens to amounts already paid.

Did the law on seasonal rentals change in October 2026?

There is currently no change in force resulting from Royal Decree-Law 26/2026.

The measure, published on 30 September 2026, amended Article 3 of the LAU.

However, Congress repealed it on 2 October 2026.

As of 4 October 2026, the consolidated BOE text retains the previous wording.

Because the rules can change, check the legal position on the day you sign or amend a contract.

Key takeaways

Project housing is negotiated twice: the day you sign and the day the project changes.

The second negotiation is much easier if the first one left four things in writing:

• How the stay can be extended.
• How the agreement can end early and what happens to amounts already paid.
• How additional apartments can be added within the same commercial relationship.
• How an occupant can be replaced.

Sources

All sources were checked on 4 October 2026.

Law 29/1994 of 24 November, Urban Leases Act. Consolidated text. Articles 3, 4, 11, 32 and 36. BOE-A-1994-26003

Civil Code, Royal Decree of 24 July 1889. Articles 1550 and 1566. BOE-A-1889-4763

Royal Decree 1619/2012 of 30 November. Invoicing obligations regulation. Articles 6 and 15. BOE-A-2012-14696

Royal Decree-Law 26/2026 of 29 September. Urgent measures concerning the social function of housing, published in the BOE on 30 September 2026. BOE-A-2026-20266

Resolution of 2 October 2026 of the Congress of Deputies. Repealing Royal Decree-Law 26/2026. BOE-A-2026-20526

Nestic: company data confirmed on 4 October 2026.