The moratorium on evictions will apply until 2030. It is part of a comprehensive package to address the housing problem that the government has developed, which also includes automatic extension of rental contracts.
Other measures include regulating short-term rentals and prohibiting investment companies from taking over housing.
According to Health Minister Mónica García, five million people will be able to benefit from the change.
"It's time to intervene in the speculative housing market and start balancing the scales between citizens and vulture funds," García writes on X.
Justice Minister Félix Bolaños writes that "Today is a big day for tenants and ordinary homeowners. And a bad one for speculators."
Parliament will vote on the law this Friday, reports El País.
The eviction of a pensioner in Madrid, 87-year-old Maricarmen Abascal, has brought Spaniards' anger over the housing crisis to a head, and protesters have set up camp in the central square of Puerta del Sol in Madrid.
