Renting Property in Spain 2024 >> How to Best Handle Laws & Landlords

We’ve rented property in Spain since 2015 and our experience has been mostly positive. However, we have had some unpleasant and expensive experiences. We’ll share our hard-earned knowledge so you can avoid the same pitfalls. In 2023, the Spanish government passed a new housing law (Ley de Viviendas) that has a huge impact on anyone renting an apartment or house in Spain long-term, and we’ll cover those changes in detail. We’ll explore the rental market in Spain and how to know if you’re getting value for money. Finally – we asked our real estate partners for their top 10 tips for Expats renting property in Spain.

Long-term or Short-Term Property Rental in Spain?

• Long-term rentals have a minimum term of one year. If you uphold the terms of the contract, you can stay for up to five years. Once the minimum time has expired, you can give agreed-upon notice if you wish to move out. These rentals are the focus of this article.
• Short-term rentals are anything up to 11 months. You will have fewer rights and will not be allowed to renew at the end of the 11 months. However, they can be a great way to start your stay, and you can see our Spain short-term rental guide for all the details.
• Holiday lets are daily or weekly rentals. These follow a different legal framework, which we won’t cover as they are for tourists.

Spain’s New Housing Law (Ley de Viviendas)

Spain’s government passed a new law on Thursday, May 18th 2023, changing landlords’ and tenants’ rights and responsibilities. The legislation aims to reduce rental costs, increase tenant rights, and increase available housing stock. Here are the four key things you need to know as a tenant about renting a property in Spain under the new regulations. There are a range of other impacts on landlords that we won’t cover here.

Warning: These laws apply to long-term rentals only. If you sign a lease for 11 months, these protections do not cover you. There is no upside to signing a short-term lease; with a long-term lease, you can still give notice and vacate as you can in a short-term lease. However, your landlord can raise rental prices (or evict you) every time your short-term lease expires.

1. A new index will control rent increases. Previously, landlords could use CPI (annual inflation figures) for rental increases during a contract. The government will now set the maximum annual increases (2% in 2023 and 3% in 2024). Before 31st December 2024, the National Statistics Institute (INE) will release the 2025 figure and set the new increase annually).
2. The government has described “stressed” areas or ‘Zona Tensionada.’ The government will restrict the maximum rental increases in stressed areas and can impose rental caps. These are areas where either:
   • Average rental rates exceed 30% of the average household income in the area.
   • Average rental rates have increased by 5% more than inflation (CPI) over the last five years.
3. Landlords cannot add new inclusive charges, such as rubbish collection, community levies, or shared external upgrades, to increase rental costs by stealth.
4. A major change is that the cost of the lease is now the landlord’s responsibility. This means the landlord must pay the agency fee. We’ve heard of instances where agencies insist that tenants in their area still pay. Push back, as this is not the case, and the landlord must cover the cost.
5. Properties that are vacant for more than two years may be liable for a Real Estate Tax (IBI) surcharge of up to 150 percent.

Tip: These laws were only passed in 2023, so some unscrupulous landlords and real estate agents are not following them. Get independent legal advice if you think this is the case.

Tenancy Agreements & Rental Contracts In Spain

What Are The Typical Upfront Costs Of Property Rental In Spain?

The costs will vary depending on the desirability of the area and the property. For property hotspots, expect to pay:

• Two months’ rent as a deposit.
• One month’s rent in advance.
• The law changed in May 2023, and the landlord is now liable to pay one month’s rent in agency fees. Previously, it was the tenant who would pay this fee. Many of our clients are reporting that agencies are still asking the tenant for this fee. We recommend you push back on it and refer to the new law. However, in areas with massive demand for rentals and low supply, you may need to absorb the cost.

As our client David said, “There were 3 other interested parties in my apartment in Madrid. If I did not pay the agency fee, then the next party would get the apartment”.

David – American Expat in Madrid

Tip: Budget the equivalent of three to four months’ rent upfront. In less popular spots, you may only need one month’s deposit.

See our guide to transferring money to Spain to get the best deal when you move large sums of money to Spain.

How Rental Deposits Work

If you rent in Spain, then you’ll hear horror stories about deposit disputes soon enough.

Deposit Amount

Typically, your deposit should be one month’s rent, but in some cases, a landlord can add an additional month. Again, in high-demand areas you have less flexibility on this.

Who Keeps The Deposit?

Legally, your landlord cannot hold your deposit. Insist your rental property deposit is held by a 3rd party, like Incasol (Barcelona), IVIMA (Madrid), or a real estate agent. This provision makes lease-end disputes more manageable than if the landlord has your cash.

You should also pay your deposit by bank transfer so that you have an electronic record and insist on a signed receipt.

What Happens At The End Of Your Lease?

The best case is you return the keys, and the landlord returns your full deposit (legally, they have 30 days to inspect the property and return your deposit.) But this is where things can go off the rails.

Wear & Tear vs. Damage

The landlord expects the property back in the same condition you received it, except for “normal wear and tear”. You’ve used the oven for five years, so if it is in good working order and clean, but the markings are worn from cleaning, that should be fine. If curtains are faded from sunshine but clean and in good repair, that should be OK. But these things are open to debate and interpretation!

Vital Tip: Take extensive photographs of everything in the property the day you move in. Document everything that could be considered damage or unreasonable wear and tear. Make a list of anything that doesn’t work or is broken, and immediately inform your landlord in writing. Be clear on what you want to be put right and what is just to be noted for the end of the lease.

To mitigate this, stay on good terms with your landlord and be open about any damage you are dealing with. Expect to paint internally, professionally clean the house, and have any damage fixed before you return the keys.

Article 21.1 of the “LAU” Urban Leases Act (Ley de Arrendamientos Urbanos) covers these issues.

What To Do If Your Landlord Refuses To Return Your Deposit?

We learned this the hard way with our first rental property in Spain. We have a furnished rental and an eight-year-old boy – not a great combination. There was definitely some damage that we were happy to pay for, but our landlord was completely unreasonable. He quoted outrageous amounts for repairs and included issues from before we’d moved in.

We were new to Spain and clueless, so we folded and gave up a two-month deposit. We did none of the things below! We’ve not had a single issue with deposits since that first rental.

So, if the landord withholds your deposit, take these steps in order.

1. Request a detailed list of all defects the landlord claims are your responsibility. Insist on official quotes from companies for repairing the damage and ensure these costs are reasonable. Compare this to the photos you have.
2. Ask your estate agent to mediate on your behalf. They’re not always willing or able, but they are a good place to start. They also may have photographs from when they advertised the property.
3. Send a burofax from the Post Office (Correos) demanding the return of your deposit and laying out why. Your landlord will sign for a receipt so you have a legal record of your demand. It also shows that you are serious.
4. Make a decision. The next step is stressful, expensive, and not guaranteed to go your way. How much money are you giving up? Can you negotiate a middle path with the landlord? Is court worth it for you emotionally and financially?
5. Lawyer up and start legal proceedings against your landlord.

In practice, some tenants withhold the last two months’ rent to prevent the landlord from keeping their deposit. However, legally, this is not advised.

Tenant Rights When Renting Property In Spain

As a tenant in Spain, you will have more rights than in many countries. While contacts vary, this is the standard for many long-term rental properties. Take this information as a generalized guide only.

• Most long-term property rental contracts are for a minimum period of one year.
• As a tenant, you have the right to renew the contract four times for a total of five years. Any rental increase must meet the conditions in the contract. The rent could be increased if significant improvements are made to the property.

Note: The landlord is obliged to register your tenancy with the authorities.

The changes to the Property Law in May 2023 also include increased protection from eviction for certain groups. This can include the elderly, people with disabilities and financially distressed individuals.

Termination By You

• In the first six months, you may be liable to pay out the balance of the contracted year.
• After six months, you may need to give 30 or 60 days’ notice, depending on your contractual agreement.

Termination By the Landlord Can Happen >> Standard Triggers

• Non-payment of your rent.
• You break a condition of the contract, like subletting, etc.
• You do significant renovations without the landlord’s permission.
• The landlord will move into the house personally. This can only happen after the first year; they must give you at least two months’ notice.

Landlord Access To The Property You Are Renting

The landlord cannot access the property without your express permission. Where they need access for renovations or repairs, you can agree on a reasonable time and duration.

Landlord vs. Tenants vs. Estate Agent Responsibilities.

You can negotiate directly with a landlord when renting a property in Spain. No real estate agent is required to be involved in your lease. However, most landlords prefer to use an estate agent to advertise and show their properties.

There is no standard law of how involved the estate agency will be once the lease is signed. Once you move in, most tenants work directly with their landlord to sort out issues that arise. You must understand and agree on how things will work during your tenancy. Ask these questions and clarify the answers before paying the holding deposit.

• How will you handle issues that arise, like repairs and maintenance? Is it through the landlord, the estate agent, or a property manager?
• What expenses are you responsible for? Terms like “minor maintenance” have very different interpretations.
• If you are responsible for work, do you get to choose the supplier and materials?
• What dispute resolution process is available to you if there are disagreements?
• Who will handle the contract renewal and any rental negotiations?

Tip: Once you have agreed on these items, email the landlord or estate agent a summary. That way, you’ll have a written record to refer to.

Utilities

You must agree on who will pay for utility costs, including water, electricity, gas, and the internet. There may be a split between common area costs and apartment costs in apartment blocks.

Variations

The type of property you live in can also impact your responsibilities. For example, shared area maintenance is usually the landlord’s responsibility if you rent an apartment.

Furnished vs. Unfurnished

Read your contract carefully to understand the inclusions and exclusions. Some consider an unfurnished property to be just the walls and roof. Others may include large household appliances, such as refrigerators, stoves, etc. Make sure that the contents of the property you inspect will still be there when you move in.

You are responsible for the upkeep and condition of all the items in a furnished property.

Where To Find A Long-Term Rental Property In Spain

Real Estate Agents

Ask around your community (in forums, Facebook groups, etc.) and try to get word-of-mouth recommendations. Or use the Moving to Spain Housing Hub for a list of vetted professionals. A local real estate agent will help you find an area and hunt out the perfect property. They may also know of properties about to come on the market, and you can apply early! This method is an excellent way to ensure you’re not pipped to the post on the most desirable properties.

Online

You can also use the leading property websites. They show the listings from the vast majority of local agents. The top two are:

• Idealista
• Habitaclia

You can narrow your search by various filters to help you find exactly what you’re looking for. Set a price range and a search area first. Then you can refine by floor area, number of bedrooms and bathrooms, and facilities such as a pool or garden.

We recommend sorting results by price, as you will discover properties are listed multiple times. By sorting them by price, you can spot the same property displayed by several agents. You can contact the agents through these websites to make appointments. They are the easiest way to find property rentals in Spain.

Word Of Mouth

If you know people in the area, looking for a deal without paying agents’ fees is always a good idea. This can be a significant saving! Post a Facebook message to find rental properties in Spain yet to be added to the open market. Join some local Facebook groups and post in those. You could get a cheap deal.

How To Apply For A Rental Property In Spain

If you have found somewhere with an agent, be aware that they are working for the owner, not for you. It is standard to pay a holding deposit until you can complete the rental contract. The deposit amount varies but is usually equivalent to one or two months’ rent. The estate agency will hold the deposit until the contract is signed when it is returned to you.

To complete the contract, you will typically be asked to provide the following:

• Evidence you can pay the rent. This evidence might be proof of employment, income, or savings.
• Tax identification number (your NIE).
• Passport or other identification.
• Personal references from past landlords, employers, or other suitable people.
• A Spanish bank account to pay rent and utilities.

What if you don’t have a job or steady income?

The landlord may ask for more rent in advance to rent the property, such as six months of rent in one payment or proof of enough savings to cover the rent for a considerable period. Depending on your situation, this requirement can vary from agent to agent and landlord to landlord. We advise being open and honest to understand the requirements if you are interested in a property.

9 Insider Tips and When Renting Property in Spain

We asked our estate agent partners for their top tips for long-term property rentals in Spain. These were the consistent messages we got.

1. Negotiating rent in Spain is the same as anywhere else. It’s all about the demand for the property. It’s always worth making an offer, but if the demand is high, you may need to go over the asking price. You will get a feel for this pretty quickly when you see how quickly the rental market is moving. While the monthly rent might seem non-negotiable, there is often room to maneuver, especially if you bring value as a stable, long-term tenant or are willing to prepay several months’ rent. Highlighting your reliability, such as a stable income or good rental history, can make you a more attractive tenant and give you leverage in negotiations.
2. Monitor the market for as long as possible before moving. This way, you will see if the properties are going like hotcakes or languishing for months. Long-term rental markets can vary widely across Spain. Cities like Madrid and Barcelona have different dynamics compared to smaller towns or rural areas.
3. If you don’t speak Spanish, consider a bilingual real estate agent or bringing along a translator when viewing properties and signing contracts.
4. Spanish rental contracts can be complex. Ensure it’s in both Spanish and your native language. Pay special attention to the contract’s duration, termination, deposits, and renewal clauses.
5. Consider hiring a lawyer to review your rental contract, especially for long-term leases, to protect your interests. Non-standard clauses can cause significant issues.
6. Build a good relationship with your landlord: A positive relationship can make your renting experience smoother, especially if you need repairs or favorably negotiate lease terms. In some other countries, your landlord is at arm’s length, but in Spain, you deal directly to resolve any issues, so build a strong relationship from day 1.
7. Try to understand your new home across a range of seasons. For many Spanish locations, summer and winter have a very different feel, even though the weather extremes are less than in other places. A buzzing summer seaside town can see all restaurants closed for off-season months, and conversely, a bustling village may be pleasantly local for most of the year.
8. Clarify which utilities are included in the rent and which ones you’ll be responsible for. It’s not uncommon for tenants to pay for utilities separately. Inquire if the community fees are included in the rent, especially in apartment complexes. These fees cover common area maintenance and amenities. The more items you cross off your list before you move in, the fewer areas for misunderstanding that can disrupt your landlord relationship.
9. Unfortunately, rental scams exist. Verify the legitimacy of listings and agents, and never pay a deposit without signing a contract first. Ensure you are dealing with an actual landlord or estate agent and only transfer money to an account you verified. We advise against paying deposits, etc., with crypto or cash unless you are certain that everything is above board.

FAQ – Renting Property in Spain