How much of your cash gets locked in deposits and guarantees

Terms used

• Fianza — The fianza is the legal deposit for a housing lease, equal to one month's rent, held as security.
• Aval bancario — The aval bancario is a bank guarantee issued to your landlord, backed by funds the bank blocks in your account.
• Burofax — A burofax is a formal written notice sent through the post office, which proves what you sent and when.
• Fiador — A fiador is a guarantor who agrees to pay your rent if you do not.
• NIE — The NIE is the identification number for foreigners in Spain, needed for contracts and taxes.
• IBAN — The IBAN is your bank account number, needed for direct debits.

Key rules

• Fianza: The legal deposit is one month's rent, and you should treat it as locked until you leave.
• Extra guarantee: An additional guarantee can be at most two months' rent for leases of up to five years (seven if the landlord is a company).
• Blocked funds: An aval or advance rent ties up your cash too, so subtract it from what you can spend.
• Utilities: Utility connections usually need fees rather than deposits, and internet often has a minimum term.

Subtract locked money before you count your cash

Money in a deposit or guarantee is not spendable. Before you decide your budget, take these amounts off your savings: the fianza, any extra guarantee, and the upfront utility costs.

The fianza

You pay a fianza of one month's rent when you sign. The landlord normally has to lodge it with a regional body, and the procedure differs by region. Count it as locked for the whole lease.

When you leave, the landlord must return it within 30 days of you handing back the keys. After 30 days, the unreturned amount earns legal interest. The landlord can deduct documented damage beyond normal wear, or unpaid bills. In practice many landlords are slow. If yours is, send a written demand by burofax before going to court.

Extra guarantees

On top of the fianza, the landlord can ask for an additional guarantee of at most two months' rent for leases of up to five years (seven if the landlord is a company). For longer leases that cap does not apply. You can refuse a request above the cap.

Landlords often ask for one of these:

• An aval bancario. Your bank issues it against blocked funds and charges fees, so the blocked amount is cash you cannot use.
• Several months of rent paid in advance. This is also cash you cannot use.
• Proof of income, such as payslips and a work contract. This locks no cash.

If you have no Spanish payslips, expect tougher demands. Alternatives you can offer are rent-guarantee insurance, or a fiador (a guarantor) who lives in Spain. Insurance costs a premium, but it does not block your savings.

Utility set-up costs

Electricity, gas, water and internet usually do not need a deposit from private customers, but they do have upfront charges. Typical 2025 figures:

• Electricity and gas: a change of name often costs little. A new connection or a change of power capacity carries regulated fees, often 50 to 150 euros in total.
• Water: some municipal suppliers ask for a deposit of tens of euros, plus a contract fee.
• Internet: an installation or activation fee of 0 to 100 euros, often waived in promotions. Most providers tie you to a minimum term, often 12 months, with penalties if you leave early.

You need your NIE and a Spanish bank account number (IBAN) to set up direct debits. Amounts vary by supplier and town, so ask each one before you sign.

A simple sum

Spendable cash = savings − fianza − any extra guarantee or blocked funds − advance rent − utility set-up costs.

The timeline, documents, warnings and questions below cover the dates, paperwork and pitfalls.

Timeline and deadlines

• Pay the fianza of one month's rent: at the start of the lease

• Agree any extra guarantee, at most two months' rent for leases of up to five years (seven if the landlord is a company): before you sign the lease

• Pay connection and activation fees for electricity, gas, water and internet: when you set up each contract

• Stay with your internet provider for the minimum term, often 12 months, to avoid penalties: during the first 12 months of the internet contract

• Claim the legal interest on any unreturned amount: after the 30 days have passed

• Send a written demand by burofax if the landlord still has not paid: if the landlord keeps the fianza after 30 days

Documents you need

• Bank guarantee (aval bancario), issued by your bank against blocked funds and fees, if the landlord asks for one.

• Recent payslips, which landlords often ask for as proof of income.

• Your work contract, shown together with the payslips.

• Rent-guarantee insurance policy, from an insurer, if you offer it instead of an aval.

• Your NIE, the foreigner identification number, needed to set up utility contracts.

• A bank account number (IBAN) in Spain, needed for utility direct debits.

What to watch out for

• Landlord asks for more than the legal extra guarantee: An extra guarantee above two months' rent is not allowed for leases of up to five years (seven if the landlord is a company), yet you may be pressed to pay it. Cash you hand over this way is locked and cannot cover your living costs. Refuse the part above two months' rent, and ask for the request in writing.

• Utility set-up costs and long internet commitments: Electricity, gas and internet usually need no deposit, but connection or capacity fees often total around 50-150 euros. Water may need a deposit of tens of euros. Internet often has a 12-month minimum term with penalties if you leave early. Ask each supplier for all upfront fees and the minimum term before you sign, and subtract them from your spendable cash.

Frequently asked questions

What can I do if my landlord does not return the fianza on time?

Send a written demand by burofax, a certified letter with proof of delivery, before going to court. Many landlords take longer than 30 days, and a burofax usually settles it without a claim. Keep your key handover date, since the interest runs from it.

What can I offer instead of a bank guarantee (aval)?

You can offer rent-guarantee insurance, a guarantor (fiador) living in Spain, or a tenant insurance product instead of an aval. An aval ties up cash because the bank issues it against blocked funds and charges fees. Payslips with a work contract can also reassure a landlord.

Do I have to pay a deposit to connect water, electricity or internet?

Electricity, gas and internet generally need no deposit, but expect connection or activation fees, often around 50-150 euros for electricity and gas together. Water sometimes needs a deposit of tens of euros plus a contract fee, depending on the municipal supplier.