Spanish Rental Contracts for Expats: LAU Rules and Tenant Protections

Signing a rental contract is often the first legal commitment expats make in Spain. Understanding the Ley de Arrendamientos Urbanos (LAU) helps you negotiate favorable terms, avoid hidden costs, and secure the right to register for residency.

Table of contents

• Key clauses in Spanish rental agreements
• Security deposits and additional guarantees
• Rent updates and inflation caps
• Duration, renewals, and early termination
• Utilities, maintenance, and community fees
• Registering your address for residency
• FAQs
• Related guides

Key clauses in Spanish rental agreements

Ensure your lease includes:

• Identification of landlord and tenants (with NIE numbers where applicable).
• Description of the property, furnishings, and parking spaces.
• Duration of the contract and renewal options under LAU.
• Monthly rent, payment method, and due date.
• Clauses covering repairs, subletting, and penalties.

Request an English and Spanish version to avoid misunderstandings; both versions should be signed.

Security deposits and additional guarantees

• Mandatory deposit: one month’s rent for residential contracts, lodged with the regional housing authority.
• Additional guarantees: landlords may request one or two extra months, a bank guarantee, or rental insurance.
• Obtain receipts for all payments and ensure the deposit is returned within 30 days of contract termination.

Rent updates and inflation caps

Spain limits rent increases to the Competitiveness Guarantee Index (IGC) or the government’s annual cap (often 2–3%). Any rent update must be:

• Stated in the contract and referenced to an official index.
• Communicated in writing at least one month before it takes effect.
• Applied after the first year of the contract unless otherwise agreed.

Duration, renewals, and early termination

• Standard contracts run for 12 months with automatic extensions up to five years (seven if the landlord is a company).
• Tenants may terminate after six months with 30 days’ notice; compensation is limited to one month’s rent per remaining year unless waived.
• Landlords may only reclaim the property early for personal use if this clause appears in the contract and they provide two months’ notice.

Utilities, maintenance, and community fees

Clarify who pays for:

• Electricity, water, gas, and internet (usually the tenant).
• Community charges (gastos de comunidad) and property tax (often the landlord but negotiable).
• Minor repairs under €150, typically the tenant’s responsibility; structural repairs remain with the landlord.

Document the property’s condition with photos during check-in to avoid disputes when moving out.

Registering your address for residency

Use the signed rental contract to:

• Register on the padrón municipal, required for NIE/TIE renewals and school enrollment.
• Apply for residency permits that demand proof of accommodation.
• Connect utilities and access healthcare within your autonomous community.

Ensure all tenants listed on the lease attend the padrón appointment with original IDs and contract copies.

FAQs

Can I negotiate a diplomatic clause? Yes. Include a clause allowing termination without penalty if your employer transfers you abroad.

What if the landlord refuses to register the deposit? File a complaint with the regional housing authority; non-compliance can result in fines.

Are furnished rentals covered by LAU? Yes. Inventory lists should specify every item to avoid damage disputes.

Related guides

• Empadronamiento in Spain
• Mortgages for Expats in Spain
• Buying Property in Spain
• Power of Attorney in Spain
• Spain Digital Nomad Visa Guide

Need a lawyer to review your lease? Book a consultation.