Renting a home in Spain: the contract, the deposit and tenant rights

What you need to know before the flat search

The long-term rental market in Spain's big cities is a landlord's market: a good listing draws dozens of applications, and the winner is the one whose documents are ready in advance. The standard set landlords and agencies ask for:

• NIE or a foreign passport;
• proof of income: an employment contract and recent nominas (payslips), an autónomo tax return or bank statements;
• sometimes references from previous landlords or a bank guarantee (aval bancario).

The benchmark landlords use: the rent should not exceed roughly 35-40% of your documented income. If you have no income in Spain yet, the situation can be saved by paying several months upfront (by agreement), a guarantor or an aval.

One important point is the type of contract. For permanent living you need a main-residence rental contract (vivienda habitual) under the LAU, not a seasonal contract (alquiler de temporada). A seasonal contract gives no right to the 5-year extension, and some landlords use it to sidestep tenant protections. Check the wording in the first line of the contract.

And a safety rule: never transfer a booking payment for a flat you have not seen - rental fraud is very common.

The rental contract and the LAU: the 5-year term and renewals

The core law on residential rentals is Ley 29/1994 de Arrendamientos Urbanos (LAU), as amended, including by RDL 7/2019 and Ley 12/2023. The key rules for the tenant:

• Minimum guaranteed term. Whatever term is written in the contract, the tenant may extend it annually for up to 5 years (up to 7 years if the landlord is a legal entity). During this period the landlord cannot refuse the extension, apart from specific cases - for example, a documented need for the property for themselves or close relatives, if that was written into the contract.
• Automatic renewal afterwards. If neither side gives notice when the 5 (or 7) years expire, the contract renews year by year for up to 3 more years (prorroga tacita).
• Notice periods. To stop the contract renewing after the base term, the landlord must give at least 4 months' notice and the tenant at least 2 months'.

Before signing, check: the landlord's exact details (do they match the land registry extract or the IBI receipt), an inventory of furniture and condition (inventario with photos), and who pays the community charges (comunidad) and the IBI tax - by default these are the landlord's costs, but contracts sometimes shift them, which must be stated separately and with the amount. Metered utilities (electricity, water, gas, internet) are almost always paid by the tenant.

Fianza, deposit and payments when signing

Article 36 of the LAU sets a mandatory deposit - a fianza of one month's rent for housing. The landlord does not keep it in a drawer: they must deposit the amount with the housing authority of their autonomous community (each community has its own body and procedure). This matters for the tenant: a deposited fianza is an argument in any dispute over its return.

On top of the fianza the parties may agree an additional guarantee, but for contracts within the base term it is capped at two months' rent. And since Ley 12/2023 por el derecho a la vivienda, the cost of agency services and drawing up the contract on a residential rental is borne by the landlord.

If you are asked for a "search fee" or a "paperwork fee", request written justification with a reference to the legal rule.

Tenant rights while the contract runs

As long as you pay the rent, the law is on your side. The main guarantees:

• Major repairs are the landlord's cost. Everything needed to keep the home habitable (boiler, wiring, leaks, structural elements) is fixed by the landlord without raising the rent. The tenant covers minor everyday wear.
• Price rises only through indexation. Rent can be reviewed once a year and only if the mechanism is written into the contract. Since 2025 new contracts use the official housing rental index published by INE; as a 2026 benchmark, check the current value before any review.
• Selling the flat does not evict the tenant. As a general rule the new owner must honour the existing contract for the base term.
• Early exit. After 6 months of living there you may terminate the contract with at least 30 days' notice. Compensation applies only if it is written into the contract, and no more than one month's rent for each remaining year.
• Right of first refusal. If the landlord sells the flat, the tenant by default has the right to buy it on the same terms (tanteo y retracto), unless the contract excludes it.

Ending the contract and getting the deposit back

To keep the fianza refund from turning into a dispute, record the flat's condition twice: at move-in and at move-out. What works is the combination of a photo inventory signed by both parties plus a dated key handover certificate.

1. Notify the landlord within the period set in the contract (and no later than 2 months before the end of the term if you do not want automatic renewal).
2. Hand the flat back in a state of normal wear: a thorough clean and fixing minor damage noticeably reduce the risk of deductions.
3. Sign the key return certificate and take the meter readings.
4. Receive the fianza: a reasonable benchmark is within a month of the handover. If the delay exceeds a month, statutory interest accrues on the amount.

The landlord may withhold documented amounts from the deposit: unpaid rent, bills, damage beyond normal wear. Paint or furniture simply tired after years of living there does not count as damage.

How Krepko does it for you

Renting is not just finding a listing. It is vetting the landlord and the property, reading the contract before signature, negotiating the terms, the deposits, the padrón at your new address and the electricity, water and internet contracts. Krepko takes on the whole process within our Real estate service:

• we vet the property and the owner before any money changes hands;
• we read the contrato de alquiler line by line and fix risky clauses before signing;
• we accompany the handover, the inventory and the depositing of the fianza;
• after you move in, we arrange the padrón and re-register the utility contracts.

Legally significant actions are carried out by licensed professionals - lawyers, gestores, sworn translators. If you want to rent a home with no surprises - leave a request, the review is free: we will look at your case and propose a plan.

Sources

• BOE: Ley 29/1994 de Arrendamientos Urbanos (consolidated text)
• BOE: Ley 12/2023 por el derecho a la vivienda
• Ministerio de Vivienda y Agenda Urbana: the Vivienda section