Who are the parties to a rental agreement?
Lessee or tenant: a person who acquires the right to use a property or real estate in exchange for payment.
Lessor: the owner of said property, the person who rents out their home.
What laws govern leases?
Urban: Law 29/1994 of November 24.
Rural: Law 49/2003 of November 26 (amended by Law 26/2005 of November 30 and Law 2/2014 of March 30).
What is considered an urban lease?
It must be for permanent use; otherwise, this type of contract is not valid and the landlord may terminate it for breach of contract.
The following are different from this contract:
1.-If the monthly rent is more than 5.5 times the minimum wage.
2.-Area greater than 300 m2.
3.-If it is a seasonal residence.
Can the tenant live there and use it for other purposes, such as an office?
Yes
Which properties are excluded from the L.A.U.?
- 1.-Housing for doormen, guards, or public officials with assigned housing.
2.-Military housing.
3.-University housing for students or teaching staff.
4.-Agreements contrary to Title II of the LAU (which regulates the duration of the contract, rent, and rights and obligations) are null and void.
Can a leased property be subleased in whole or in part?
Article 8 of the Urban Leasehold Law (LAU) regulates the transfer of the contract and subletting. It establishes that the tenant cannot transfer the contract without the written consent of the landlord, and that the property can only be partially sublet with the same consent. In addition, the sublet price cannot exceed the original rent.
If the owner allows it, it can only be done on a room-by-room basis.
The sublease will end when the lease ends.
If the owner does not allow it, and the tenant does so anyway, the owner can file an eviction lawsuit.
How is the rent paid?
- 1.-Payment is due within the first 5 days of the month.
2.-The place and method of payment are designated by mutual agreement.
3.- If the tenant pays in cash, the landlord must provide a receipt, and if not, bear the costs for the tenant to provide proof of payment.
4.-The items being paid for must be itemized.
5.- The primary residence is exempt from VAT, unless it is not, or is for some industry.
How is rent updated?
With regard to rent increases, during the first five years of the contract, rent may only be increased at the end of each year of the contract and by an amount equal to the CPI for the year prior to the increase.
From the sixth year onwards, the parties may determine how rent increases will be calculated, but if they fail to do so, the method used for the first five years of the contract will apply.
Can you raise the rent? By how much? Do I use the CPI or the IGC (formerly IRAV)?
The Consumer Price Index (CPI) measures changes in the cost of living, i.e., how much the prices of goods and services in Spain rise (or fall). Traditionally, this index has been used as a reference to update rental prices each year, with the aim of ensuring that landlords do not lose purchasing power due to inflation.
However, since March 2022, and especially in subsequent years, there have been several legal changes that limit rent increases, particularly in the context of high inflation. This has led to confusion about which index to apply: the CPI or the new IGC (Competitiveness Guarantee Index).
According to the Urban Lease Law, during the term of the contract, rent can only be updated annually and based on the CPI variation. It is important to know that this update is not done from January to January, but from the first month in which the contract was signed. In other words, if a contract was signed in July, rents cannot be updated to the CPI until the following year.
In 2025, if your rental contract falls within the scope of the Housing Law and you have not expressly agreed on a different index, you must apply the IGC instead of the CPI as a maximum.
The IGC is an index created to prevent abusive rent increases during periods of inflation, such as those experienced in 2022 and 2023. It has a maximum limit of 3%, which means that even if the CPI
Can the landlord increase the rent?
The landlord may increase the rent paid by the tenant if improvement works are carried out on the property after the first five years of the contract, but this increase may not exceed 20 percent of the rent being paid at that time.
Who pays for repairs to the property?
Minor repairs required due to normal wear and tear of the dwelling shall be borne by the lessee (21.4).
How long is the lease?
The duration will be as agreed by the parties, but if this period is less than five years, when the contract expires, it will be automatically extended for annual periods until it reaches the minimum duration of five years. If the duration is not specified in the contract, it will be understood to be one year, with the right to the aforementioned extensions up to five years. The term shall begin to run from the date on which the property is made available to the lessee..
How can the tenant terminate the contract?
The lessee may terminate the contract or its extension by giving the lessor thirty days’ notice.
How can the landlord terminate the lease?
The landlord can only terminate the contract if the tenant agrees to it, or if the landlord’s need to occupy the property before the end of the 5-year period for themselves or their cohabiting relatives was expressly stipulated in the contract beforehand. However, it is important to bear in mind that in this case, the landlord or their family member must have occupied the property within three months of the termination of the contract.
First opportunity for the owner to terminate the rental contract
In the fifth year, giving at least four months’ notice and without having to give any reason for terminating the contract. If the owner is a company rather than a private individual, instead of five years, it is seven years, which means that the first five years are mandatory for the owner.
Second opportunity for the owner
If they did not take advantage of the opportunity in the fifth year, they can terminate the rental contract in the eighth year. Here, too, they do not have to give any reason and the four months’ notice is not required. This means that if they did not give notice in the fifth year, they have to wait until the eighth year. This is exactly what it means, and if the owner is a company, they have to wait from the seventh year to the tenth year.
Third way for the landlord to determine the lease agreement As long as they meet the requirements established by law, for example, if the clause is included in the agreement from the first year, they can terminate the c
Can the landlord terminate the contract early?
It may be agreed in the contract that if the lessor decides to terminate the contract before a certain period, they must compensate the lessee with an amount equivalent to one month’s rent for each year of the contract remaining to be fulfilled, with periods of less than one year being calculated on a pro rata basis.
After five years have passed, how many more times can the contract be renewed?
Once at least five years of the contract term have elapsed, if neither party has notified the other, at least one month prior to that date, of its intention not to renew it, the contract shall be automatically extended for annual periods up to a maximum of three additional years.
What happens if the landlord sells the property while it is rented?
In the event of the sale of the leased property, Article 14 of the LAU stipulates that the purchaser must respect the lease agreement, at least until the fifth year of its term, even if it is not registered in the Property Registry.
Who pays for water, electricity, etc.?
The tenant shall be responsible for the costs of the services available on the leased property, which are measured by meters (telephone, electricity, gas, water, etc.).
How is the bond constituted?
The deposit is one month’s rent, and two months’ rent in the case of leases other than residential (business premises), but a bank guarantee, multi-risk insurance, or other forms of security may also be requested.
The deposit will be returned at the end of the contract if there is no damage, or it can be offset against the final payment.
The rental deposit must be paid in accordance with the provisions of the Urban Leasehold Law (art. 36 of the LAU) in cash and deposited with the General State Administration or with the administrations of most of the autonomous communities where the property is located.
Andalusia:
Andalusia Housing and Rehabilitation Agency. Form 806. Payment at the office by card or direct debit.
It can also be done online, using a digital certificate.
https://www.juntadeandalucia.es/organismos/avra/areas/fianzas.html
Can the landlord keep the security deposit?
The deposit can be 1 month + 2 months’ additional guarantee.
Case law has established that the landlord must return it within a maximum period of 30 days from when you return the keys. In principle, the landlord must return the deposit and may only keep it in full or in part if all obligations have been fulfilled. I am referring to cases where the tenant has not paid rent for months, has left utilities unpaid, has removed property from the premises when leaving, or has caused damage that goes beyond than normal wear and tear, the deposit may be retained in whole or in part, but in all other cases it must be returned.
Who can carry out work on the leased property and how?
The landlord may carry out improvement works if they cannot be postponed until the end of the contract, informing the tenant in advance of how long they will take, when they will begin, what they consist of, and the expected cost. The tenant may terminate the contract if they do not agree.
The tenant may terminate the contract by notifying the landlord, on the grounds of the habitability of the property, and may pass on the cost to the landlord.
If the landlord does not approve, they may request that the property be left as it was.
If a person with a disability lives with the tenant, the work may be carried out, but the landlord may request that the property be left as it was at the end of the contract.
When can the landlord terminate the contract?
For contracts after March 6, 2019
The landlord may terminate the contract if any of the following circumstances arise:
– Failure to pay the rent or, where applicable, any of the amounts that the tenant has agreed to pay or is responsible for paying.
– Failure to pay the deposit or its update.
– Subletting or assignment without the landlord’s consent.
– Malicious damage to the property or work not consented to by the landlord, when the landlord’s consent is required.
– When annoying, unhealthy, harmful, dangerous, or illegal activities take place in the dwelling.
– When the dwelling ceases to be used primarily to satisfy the permanent housing needs of the tenant or the person actually occupying it.
When there is a clause stipulating the owner’s need for the dwelling, for reasons stipulated by law.
In any case, if the above does not apply, according to Article 9 of the L.A.U., the tenant may stay for a minimum of 5 years, and the owner must give 4 months’ notice before the end of the fifth year. If this is not the case, the lease will be extended for another 3 years.
When can the tenant terminate the contract?
The tenant may terminate the contract if the landlord fails to carry out the repairs necessary for the maintenance of the property.
In such cases, the injured party may demand compliance with the obligations and compensation for damages, as well as the payment of interest.
Does the tenant have to pay compensation if they leave early?
This only applies when the lease agreement expressly provides for it.
🔹 If the tenant has been there for less than 6 months, they cannot leave unless the landlord agrees. And if they do leave, they have to pay rent until the sixth month.
🔹 If they have been there for more than 6 months, they can withdraw with 30 days’ notice.
🔹 Compensation will only be paid if the contract specifies this (one month’s rent for each year remaining is usually the norm).
Tip: check the withdrawal clause carefully before signing.
A poorly worded detail could cost you months of rent.
Article 11 of the Urban Leasehold Law (LAU)
What regulatory changes regarding non-payment have taken place since April 2025?
Organic Law 1/2025, effective April 3, 2025, requires negotiation in cases of non-payment prior to eviction proceedings. There are up to six negotiation models, some more complicated than others (MASC Adequate Means of Dispute Resolution).
The room rental agreement is governed by the L.A.U. (Urban Leasehold Act).
No, the room rental agreement is governed by the Civil Code, and if the agreement does not expressly stipulate the right to withdraw before the end of the term, leaving early constitutes a breach of contract and the landlord can claim the outstanding rent until the end of the agreement.
However, if the room is re-let immediately, the landlord can only claim for the time it was vacant, nothing more.
The general rules on rental contracts in the Civil Code (CC) apply, as set out in articles 1542 et seq. (especially 1554 et seq. for urban property rentals).
The CC allows greater freedom of agreement between the parties (duration, price, etc.), but offers less protection to the tenant than the LAU.
How often must registration in the Emvisesa Claimants Register be renewed?
Every 6 months
Can we rent an apartment without an Energy Efficiency Certificate (EEC)?
No, in Spain it is not possible to legally rent an apartment without an Energy Efficiency Certificate (CEE). This document has been mandatory since 2013, according to Royal Decree 235/2013 and Law 8/2013 on Urban Rehabilitation, Regeneration, and Renovation.
If you are a property owner, obtain the CEE as soon as possible to avoid problems. If you are a tenant and are offered an apartment without it, demand a copy or consider reporting it. For more specific details about your community (e.g., Catalonia, Madrid), consult the regional registry.
What are the consequences of renting an apartment without an EEC?
- It is a serious offense that can result in fines ranging from €300 to €6,000 for the owner, depending on the severity (for example, not including it in the advertisement is minor, but not providing it to the tenant is serious).
Platforms such as Idealista or Fotocasa do not allow advertisements to be published without it, and notaries require it to formalize the contract.
The tenant can report you, which could void the contract or lead to legal disputes.
Exceptions to the CEE requirement
There are cases in which it is not required:
Homes smaller than 50 m² in isolated areas.
Industrial buildings used as workshops.
Properties for demolition or complete renovation.
Temporary rentals for a maximum of 4 months per year.
How to obtain the CEE?
- Hire an authorized certifying technician (architect or engineer).
Approximate cost: €50-300, depending on size and location.
Valid for 10 years and registered in the corresponding autonomous community.
You can search for certifiers in your area through professional associations or portals such as that of the Ministry for Ecological Transition.
If the landlord does not make repairs, can I stop paying rent?
No, the landlord does not have to repair everything, only those things that affect the habitability of the property.
They do not have to carry out minor repairs. The law states that the tenant must carry out repairs that are “the result of wear and tear.”
Even if it is a serious repair that must be done by the landlord, never stop paying. The landlord can terminate the contract and evict you, and even include you in a delinquent tenant registry.
To resolve these issues, you can either resort to dialogue or legal action.
Source
Who pays the garbage collection fee?
Local councils issue the bill in the name of the owner, who is the person registered with them. However, Article 20.1 of the Urban Income Law allows the owner to pass on the garbage collection fee to the tenant, meaning that the owner can require the tenant to pay the garbage collection fee in addition to the rent, provided that the lease agreement includes a clause stating this.