When costs run higher than planned and money becomes the argument

Terms used

• Fianza — The fianza is a deposit of one month's rent that the landlord must take and lodge with the regional body.
• TIE — The TIE is the foreigner identity card issued to non-EU residents in Spain.
• Modelo 790 — The modelo 790 is the fee payment form used for residence procedures such as the TIE.
• Concertada — A concertada school receives public funding but usually asks families for a monthly voluntary fee and extras.

Key rules

• Agency fees: The landlord pays the agency's fees and contract costs, not you.
• Fianza: The landlord must take one month's rent as fianza, and extra guarantees are capped at two months' rent.
• Blame-free decision: Agree the numbers first, then choose together whether to cut, earn or move.
• Health insurance: Workers who pay social security are covered by public healthcare; private cover is required only for certain permits.

Fees, insurance premiums, school costs and rents change and vary by region, so confirm current figures with the relevant office before budgeting.

Start with the surprises you can see coming

Most first-year cost shocks in Spain are known ahead of time. That helps: a surprise you expected is a line in the budget, not a fight. Go through this list before you argue about any single bill.

• Agency fees. The landlord pays the estate agency's fees and the contract costs, not you. If an agency asks you for them, question it. The only exception is rare: you alone hired the agent for your own interest.
• Deposits. For a normal home rental the landlord must take a fianza of one month's rent. Extra guarantees, such as a bank guarantee or additional deposit, are capped at two months' rent for leases of up to five years (seven if the landlord is a company). Anything beyond that is worth challenging.
• Residence paperwork. The TIE card and related procedures are paid with modelo 790, using a code for each procedure (004 for the TIE issue, 012 for most permits). Fees change over time and differ by procedure, so check the current amount with the Policía Nacional before you budget.
• Health insurance. If your permit requires private cover, with no copayments or waiting periods, a family of four has typically paid roughly 150 to 300 euros a month. Cheaper plans with copayments exist. If you work and pay social security, you are covered by public healthcare.
• School. Public schools charge no tuition, but books and materials cost money. Many regions have free textbook loans or aid. Concertada schools usually ask a monthly voluntary fee, plus materials and uniforms. Private and international schools cost the most.
• Rent. Barcelona and Madrid are the most expensive. Mid-size inland cities such as Zaragoza, Valladolid, Murcia or Córdoba are often a third to a half cheaper per square metre.

Make it about the money, not about each other

Agree on these ground rules first:

1. Look at the numbers together, on one page, with no one presenting a defence.
2. Agree the monthly minimum you need to live on before discussing extras.
3. Treat every overrun as information about the plan, not as a mistake by one person.

Decide: cut, earn, or move

For each gap, pick one lever and write it down.

• Cut. Start with things that hurt least: a cheaper health plan if your permit allows it, school extras and uniforms, a switch from a private to a concertada or public school if that suits your children.
• Earn. Decide who could add income, how much, and by when. Check first that your permit allows the work.
• Move. A cheaper city can cut rent sharply, but moving costs money and disrupts school. Price it before you propose it.

Set a date, usually a month ahead, to review whether the change worked. The monthly check-in planner below gives you a routine for this. If the main earner loses their job, read the what-if below first.

Check before you pay

Compare your signed rental contract with the list above, and the documents section below for your TIE fee form. Anything you were charged that should have been the landlord's is worth raising with the landlord or your town hall's consumer office.

Monthly money check-in routine for your first year

Set a 20-minute money check-in once a month

A short monthly check-in stops cost spikes from turning into arguments. Most first-year shocks in Spain are predictable, so look at them before the bill arrives. Pick a fixed day, such as the first Sunday of the month, and keep it to 20 minutes.

The agenda

Use the same four steps every month:

1. Last month. Compare what you spent with what you planned. Note only the surprises.
2. Next three months. Check the calendar below and name any big bill coming up.
3. Set money aside. Agree how much goes into a separate pot for each big bill.
4. One decision. Settle one question, such as who pays what or whether to cut something, and write it down.

If a topic gets heated, park it until next month's check-in. Never raise it in the middle of a bill panic.

What to watch for, month by month

• Month 1 (move-in): The first rent comes with a deposit, so the first month costs more than later ones.
• March: If you hold assets abroad, check whether you must file the Modelo 720 foreign asset declaration. It is due by 31 March.
• April to 30 June: The annual income tax return (IRPF) falls in this window. You may have to pay when you file.
• June to July: Schools often ask for enrolment payments.
• September: School starts, with books, materials and uniforms.
• Spring to summer: The vehicle circulation tax, if you own a car, usually falls in these months.
• Autumn: The property tax (IBI) usually arrives, if you own or buy a home.
• December: Christmas adds extra spending.
• Any month: Car and home insurance renew on the anniversary of the policy, so note the date when you sign.

IBI and vehicle tax dates are set by each town hall. Ask yours for the exact dates, then put them in the calendar you use for the check-in.

Make it work

• Keep one shared note with the bills calendar and the pots you have set aside.
• Add each new bill you meet to the note, so next year has no surprises.
• Start the routine in your first month, before the first spike.

Documents you need

• Fee payment form (modelo 790) for your TIE, the foreigner identity card: pay it with code 004 for the card issue, or code 012 for most residence permits and authorisations. The amount depends on the procedure, such as first card, renewal or long-term residence.

• Your signed rental contract, to check that the landlord, not you, is paying the agency fee and the contract formalisation costs. Keep any agency invoice with it.

What if the main earner loses their job in Spain?

The first move is to check everyone's status, and the second is to register and apply for benefit within 15 business days of the job ending. Do both before you make any big decisions about housing or moving.

Step 1: Check each person's status

Your permit situation decides how much time you have.

• Non-EU worker with a residence and work permit. The permit is not cancelled when the job ends. It stays valid until it expires, and for the whole benefit period if you are entitled to benefit. The risk comes at renewal. You will usually need to show at least 3 months of Social Security contributions per year of permit, plus either benefit entitlement or a new job offer. Check your permit type with the Oficina de Extranjería, because renewal rules differ by permit.
• Family who joined you through family reunification. Their permits keep running until they expire. Renewal can get harder, because you must still show enough income and housing. A spouse may be able to apply for an independent permit once they hold a work permit. Children stay dependants while they are minors.
• EU/EEA or Swiss citizens and their family. You keep your status as a worker if you are involuntarily unemployed and registered as a jobseeker. After less than a year of work, you keep it for six months. After more than a year, it lasts at least six months, and longer if you qualify for benefit. Family members keep their right to live in Spain while you keep that status. After 5 years of legal residence, permanent residence is not lost through unemployment.

Step 2: Register and apply

Register as a jobseeker with your regional employment service, then apply for benefit with the SEPE, the state employment service. You can apply online, by phone appointment or in person. Apply within 15 business days of the job ending. Each day of delay is taken off the length of your benefit.

Bring these:

• Your ID or NIE, the foreigner identification number.
• The employer's certificate of company, which is usually sent electronically.
• The dismissal letter or other termination document.

If you think the dismissal was unfair, you have 20 business days to contest it. Decide this quickly and get advice from a labour lawyer or union.

What benefit to expect

For employees, contributory benefit needs at least 360 days of contributions in the last 6 years, and you must be involuntarily unemployed. It lasts from 120 days (360 to 539 days contributed) up to 720 days (2,160 days or more). It pays 70% of your contribution base for the first 180 days and 50% after that. Minimum and maximum amounts depend on your family situation and change each year, so ask the SEPE for your figure.

If you do not have enough contributions, ask about the subsidio por desempleo. It is a lower benefit that depends on your household's income. The self-employed use a different scheme.

Step 3: Talk it through as a household

Once the applications are in, sit down together and cover these points:

1. How many months the benefit and your savings cover, using the SEPE figure.
2. Which costs can drop first, starting with rent, which is usually the biggest.
3. Whether a partner can work, and whether their permit allows it.
4. What the family's permits need at renewal, and when each one is due.

Frequently asked questions

Can our landlord make us pay the agency fee?

No, in most cases the landlord pays the agency fee and the contract formalisation costs on a residential rental. You can only be charged if you alone hired the agent for your own interest, which is rare. If an agency asks you for a fee, ask who hired them.

How much extra can a landlord ask for on top of the fianza?

A landlord can ask for extra guarantees of up to two months' rent on top of the fianza, which is one month's rent. This applies to residential leases of up to five years, or seven if the landlord is a company. Check whether you can swap a large extra deposit for a smaller one before cutting elsewhere.

Do we need private health insurance, and what does it cost a family?

It depends on your permit: private insurance with full cover is required for the non-lucrative and digital nomad visas and their renewals. A family of four typically paid roughly 150 to 300 euros a month in 2025 for plans without copayments. If one of you works and pays social security, public healthcare covers you, so you may not need it.

Which school costs can we cut if money gets tight?

Public schools charge no tuition, so the main savings are in books, materials and extras. Many regions run free textbook loan schemes and aid, so ask your regional education office. Concertada schools usually ask a monthly voluntary fee for extras, and private schools charge tuition plus enrolment fees.

Would moving to a cheaper city really cut our rent?

Yes, mid-size inland cities such as Zaragoza, Valladolid, Murcia or Córdoba are often a third to a half cheaper per square metre than Madrid or Barcelona. Rents also vary by neighbourhood, so compare areas inside the city you already live in first.