Becoming a long-term landlord in Spain and what the law requires

Key rules

• Fianza: The fianza on a residential lease is one month's rent.
• Extra guarantee: Any extra guarantee cannot exceed two months' rent on leases of up to 5 or 7 years.
• Minimum term: A residential lease lasts at least 5 years, or 7 years if the landlord is a company.
• Rent updates: Without a clause in the contract, you cannot raise the rent during the lease.
• Agency fees: You cannot charge the tenant the letting agency's fees.

How long the lease must run

A residential lease has a minimum term of 5 years, or 7 years if the landlord is a company. If you and the tenant agree a shorter term, the lease still extends year by year, at the tenant's choice, until it reaches that minimum.

After the minimum term, the lease renews each year for up to 3 more years unless someone gives notice. You must give 4 months' notice before expiry if you do not want it to continue. The tenant must give 2 months.

The tenant can leave early. After 6 months they can go with 30 days' notice. The contract may require compensation of one month's rent for each year left, in proportion for part years.

Taking the home back

You can recover the home for your own use only if the contract says so from the start. You then need to wait until after the first year, give 2 months' notice, and the person must move in within 3 months. If the home is not used as stated, you may owe damages.

The fianza and extra guarantees

You must lodge the fianza with the housing body of your region, usually within one to two months of signing. The body and the deadline differ by region, so ask your regional housing body before you sign. The amount is set out in the key rules.

If you want more security, you can ask for an aval, a bank guarantee from the tenant's bank. The cap on extra guarantees is in the key rules.

Updating the rent

You can raise the rent once a year, on the contract anniversary, only if the contract says so and sets out how. With no clause, no update is allowed. The index and limits for updates have changed several times recently, so check the rule that applies to your contract date with your regional housing body before you apply an increase.

Stressed zones

Some regions declare "stressed" zones where housing is especially costly. In these zones, the rent on a new lease generally cannot go above the previous contract's rent, updated by the index. Owners of more than 10 properties face further reductions. Exceptions exist, for example after major renovation.

The rules differ by region. Catalonia and the Basque Country have declared zones, while several other regions have not applied the mechanism. Ask your town hall or regional housing body whether your street is covered.

Costs you can and cannot pass on

The letting agency's fees and the cost of formalising the lease are yours to pay when the agency works for you. You cannot charge them to the tenant.

You can pass on community fees, IBI and rubbish charges only if the contract says so in writing and states the annual amount at signing. The tenant pays water, electricity and gas through their own contracts.

Repairs

You must carry out the repairs needed to keep the home habitable, with no rent increase, unless the tenant caused the damage. Small repairs from normal use are the tenant's. The tenant must tell you promptly and let urgent work happen. If an urgent repair cannot wait, the tenant may do it and claim the cost from you. If repairs last more than 20 days, the rent falls in proportion.

If you sell

If the lease is registered in the land registry, the buyer must respect it for the full term. An unregistered lease on a main residence still binds the buyer for the first 5 years, or 7 if the landlord is a company. The tenant has no right of first refusal unless the contract grants one.

The checklist, documents and timeline below cover what to prepare and when.

Timeline and deadlines

• Lodge the fianza with your regional housing body: within 1 to 2 months of signing, depending on the region (for example 1 month in Madrid and Andalusia, 2 months in Catalonia and Valencia)

• Expect the tenant to be able to leave early with notice: after 6 months, the tenant may leave with 30 days' notice

• Use the own-use reservation only if the lease includes it: after the first year, with 2 months' notice, and you or your close family must move in within 3 months

• Carry out repairs needed to keep the home habitable: as soon as the tenant tells you; if repairs last over 20 days, the rent is reduced in proportion

• Give notice if you do not want the lease to continue after the minimum term: at least 4 months before the term ends; the tenant needs 2 months

• Let the lease renew each year if no one gives notice: after the minimum term of 5 years (7 years if the landlord is a company), it extends by yearly periods for up to 3 more years

Documents you need

• Written lease contract signed by you and the tenant. It should state the term, the rent, whether and how the rent is updated each year, any expenses the tenant pays with their annual amount, and any right to take the home back for your own use.

• Aval or bank guarantee from the tenant's bank, only if you ask for an extra guarantee. On leases of up to 5 or 7 years it cannot exceed two months' rent.

• Registration of the lease in the land registry (Registro de la Propiedad). It is optional, but a registered lease binds a buyer for the full term if you sell.

What to have in place before you let your home

• Get an energy performance certificate (certificado de eficiencia energética) from a qualified technician, register it with your regional energy body, and give the tenant a copy at or before signing. It lasts 10 years, and the energy label must appear in any advert.

• Find out whether your region requires a habitability certificate (cédula de habitabilidad or an equivalent occupancy licence) and, if it does, get it from the regional government or town hall before you list. Catalonia, the Balearic Islands, Valencia, Galicia and the Basque Country require it.

• Prepare a written lease that names the parties, the property, the term, the rent and how it is updated, the deposit, the costs and the energy label. A verbal lease is valid, but either side can demand it in writing.

• Set aside the fianza (the legal deposit) and ask your regional housing body how and by when to lodge it. Deadlines are usually 1 to 2 months from signing, for example 2 months with INCASÒL in Catalonia and 1 month in Madrid.

• Consider registering the lease in the Registro de la Propiedad, the land registry. It is optional, but it protects the tenant if you sell.

• For a tourist let, get your registration or licence from the regional tourism authority, usually through a declaración responsable (a sworn declaration), and check the town hall's planning rules before you advertise.

Frequently asked questions

Can I charge the tenant the letting agency's fees?

No, you cannot charge the tenant letting-agency or formalisation fees on a residential lease. Since May 2023 these costs fall on the landlord and cannot be passed on to the tenant by contract.

Can I pass community fees and IBI to the tenant?

Yes, you can make the tenant pay community fees, IBI (the local property tax) and rubbish charges, but only if the lease says so in writing and states the annual amount at signing. Water, electricity and gas are paid by the tenant through their own supply contracts.

Can I take my home back to live in it during the lease?

Yes, but only if the lease expressly reserves that right, and only after the first year. You must give 2 months' notice, and you or your close family (children, parents or a former spouse) must move in within 3 months, or you may owe the tenant damages.

Does my tenant stay if I sell the home?

Yes, a main-residence tenant generally stays after a sale.

Do I have to lower the rent while repairs are being done?

Yes, if repairs last more than 20 days the tenant's rent is reduced in proportion. This applies to repairs you owe to keep the home habitable, not to damage the tenant caused or to minor wear from everyday use.