Finding a rented home is one of the first needs for anyone moving to Spain, and a tenancy agreement is also a key document in many residence and family reunification applications. Residential tenancies are governed by the Urban Leases Act, Law 29/1994 (Ley de Arrendamientos Urbanos, LAU). Housing Law 12/2023 of 24 May 2023 and later amendments added further rules in favour of tenants. This area has changed frequently in recent years; the information below reflects the rules in force as of November 2026.
Lease length and renewal
For a home rented as the tenant's main residence, the parties can agree the length freely, but the law protects the tenant:
- Even if the lease is for less than five years, it renews automatically each year, unless the tenant decides otherwise, until it reaches five years in total; if the landlord is a legal entity such as a company, the period is seven years
- At the end of that period, if neither party gives notice that it wants to end the lease (the landlord at least four months in advance, the tenant at least two months), it renews annually for up to three more years
- The tenant can leave after the first six months by giving at least 30 days' notice
- If the landlord is an individual and the lease expressly says so, after the first year the landlord can recover the home for their own use or for first-degree relatives by giving at least two months' notice
Under the rules in force since 8 October 2026, a tenant who leaves in this way cannot be required to pay compensation; older leases may provide for compensation of one month's rent for each remaining year, and the transitional provisions need to be checked for those. A separate decree that would have made leases renew automatically in successive five-year periods was not ratified by Parliament on 12 November 2026, so the three-year renewal rule above still applies.
Temporary lets
Lets made for a temporary reason, such as work, study or medical treatment, follow separate rules. Royal Decree-law 29/2026 of 6 October 2026, ratified by the Standing Committee of the Congress of Deputies on 12 November 2026, introduced the following rules:
- A temporary let must be longer than 31 days and, as a rule, no longer than 12 months, and must be based on a genuine temporary reason
- If a temporary lease exceeds 12 months without justification, or more than two consecutive temporary leases are signed between the same parties for the same home, the first lease is treated as a main-residence lease and the five-year protection applies
- In a temporary let, the tenant can leave after the first month by giving at least ten days' notice
- When rooms are let separately, the total rent for the rooms cannot exceed the rent for the whole home
The deposit (fianza) and additional guarantees
- For residential lets, a cash deposit of one month's rent is required by law
- The parties can agree an additional guarantee (such as a bank guarantee or extra cash); in five- or seven-year leases it cannot exceed two months' rent, and in temporary lets one month's rent
- A tenant cannot be required to take out rent default insurance or similar cover
- The deposit is not updated during the first five (or seven) years
- In many regions the landlord must lodge the deposit with a regional public body; the body and deadlines vary by region
At the end of the lease, the deposit is returned after deducting any damage to the home and unpaid amounts. Any amount not returned within one month of the keys being handed back accrues statutory interest. A handover document describing the condition of the home and signed by both parties must be drawn up when the home is returned; if no such document is signed, or it records no damage, the home is presumed to have been returned in good condition unless the contrary is proven.
Costs, rent increases and stressed areas
- Estate agency fees and the costs of preparing the lease cannot be passed on to the tenant; they are borne by the landlord
- Costs that cannot be measured individually, such as community charges, can only be passed on to the tenant if this is agreed in writing with the annual amount stated; property taxes cannot be charged to the tenant unless the tenant is the taxpayer
- Metered costs such as electricity, water and gas are paid by the tenant
- Rent can only be increased if the lease provides for it, and only once a year; the increase cannot exceed the rental update index (IRAV) published by the National Statistics Institute (INE). The October 2026 rules added further limits until 2027
Law 12/2023 allows the Autonomous Communities to declare areas where the rental market is under pressure as stressed areas (zona de mercado residencial tensionado). In these areas rents in new leases can be capped, and tenants whose leases are ending can, under certain conditions, request an additional extension. Practice varies by region: such declarations have been made in some places, such as many municipalities in Catalonia, while some Autonomous Communities have not used this option.
Practical steps before signing
- Check that the landlord really owns the property by obtaining an information note (nota simple) from the Land Registry (Registro de la Propiedad)
- Put the lease in writing, with the length, rent, increases, costs and deposit clearly stated
- Record the condition of the home and its contents at handover with a photographic inventory
- Pay by bank transfer and keep the receipts
- After signing, register with the local council (empadronamiento) at this address; you will need it for residence and school procedures
- If you are offered a temporary lease for what will be your main home, ask whether there is a genuine temporary reason
When to get advice
If your deposit is not returned, if the landlord asks you to leave before the lease ends, if there is a dispute over a rent increase or costs, or if you have been offered a temporary lease for your main home, it makes sense to seek information from the consumer and housing offices in Spain or from Spanish lawyers who work in this area. If you will use the lease in a residence or family reunification application, it is also worth checking before you apply that it is consistent with the housing report and the application requirements.
Member of the Istanbul Bar Association. Spain immigration consultant. Profile
This article is for general information and is not legal advice. Legislation and case law may have changed since it was written.