Renting in Spain: understanding the LAU and your rights as a tenant

Spain's rental market has undergone significant regulatory changes since 2019, all strengthening tenant protections. The key law is the LAU (Ley de Arrendamientos Urbanos), which governs residential leases. Here is what expats need to know.

Contract types - watch for the seasonal trap

There are two main contract types:

• Arrendamiento de vivienda habitual - a residential lease for your primary home. Protected by the LAU with minimum duration and tenant rights.
• Arrendamiento para uso distinto - a different use contract (seasonal, commercial). Not protected by the LAU.

Some landlords offer 11-month seasonal contracts to avoid giving you tenant protections. If the property is your primary residence, this is generally unenforceable, and courts can reclassify it as a standard residential lease regardless of what the contract says.

Minimum contract duration

For a residential lease:

• 5 years if the landlord is an individual
• 7 years if the landlord is a company

Even if your contract says 1 year, you have the right to stay for up to 5 (or 7) years through automatic annual renewals. After the initial 5/7-year period, the contract extends for 3 more years unless either party gives notice.

You can leave after the first 6 months with 30 days' written notice. Some contracts include a penalty for early departure (typically 1 month per remaining year, proportional).

Fianza (security deposit)

The mandatory deposit under the LAU is exactly 1 month's rent for residential leases. The landlord may also request an additional guarantee of up to 2 months' rent during the initial contract term.

The landlord is legally required to register the fianza with the regional housing authority (e.g., INCASOL in Catalonia, IVIMA in Madrid). Ask for proof that this has been done; it significantly strengthens your position in any dispute.

The deposit must be returned within 1 month of handing back the keys. After that, legal interest accrues. All deductions must be supported by invoices.

Rent increase rules

Since 2024, annual rent increases on existing leases are capped (3% in 2024, with future increases linked to a new INE reference index rather than the CPI). In declared stressed zones (zonas tensionadas), further restrictions apply on new leases as well.

What to do if your landlord keeps the deposit

• Request a detailed, itemized list of claimed damages with invoices
• Send a formal written demand (a burofax, available at any Correos post office, provides legal proof of delivery)
• If the landlord does not respond, file a claim in court. Spanish small claims proceedings are accessible without a lawyer for amounts under EUR2,000

To reduce disputes from day one, follow our security deposit protection guide for Europe and this move-in inspection checklist.

How RentalProof helps

RentalProof explains Spanish clauses in plain English and helps maintain evidence for faster, better dispute outcomes.