The Spanish Rental Law (LAU)
Residential rental contracts in Spain are governed by the Ley de Arrendamientos Urbanos (LAU). The current version provides strong protections for residential tenants while preserving landlords' rights to recover their property at the end of a lease.
Types of Rental Contract in Spain
There are three main types of residential rental arrangement:
- Long-term residential lease: The tenant's primary residence. Governed by LAU with strong tenant protections. Minimum 5 years duration (7 if landlord is a company).
- Seasonal / temporary rental: Not the tenant's primary residence — holiday lets, work assignments. Less regulated. Duration and price agreed freely.
- Tourist rental (VUT): Short-term tourist lets via Airbnb etc. Requires a VUT licence from the Junta de Andalucía.
Key Terms in a Spanish Residential Lease
Duration and renewal: A residential lease is automatically extended at the tenant's option for up to 5 years total. After that, the tenant can extend for 3 further years unless the landlord gives 4 months' notice. The landlord can only terminate early if they personally need the property as their primary residence (2 months' notice required).
Rent increases: Annual increases cannot exceed CPI during the first 5 years.
Tenant's right to terminate: The tenant can terminate after 6 months, giving 30 days' notice. Early termination penalties cannot exceed 1 month's rent per year remaining.
Deposits and Guarantees
Under the LAU, the landlord can require:
- Legal deposit (fianza): Exactly 1 month's rent. The landlord must deposit this with the Junta de Andalucía within 30 days.
- Additional guarantee: Up to 2 additional months' rent as bank guarantee or cash — maximum total security: 3 months.
The deposit must be returned within 1 month of the tenant vacating. If not returned, the tenant is entitled to legal interest. Deductions are only permitted for damage beyond normal wear and tear, outstanding rent, or unpaid utilities.
Eviction (Desahucio) in Spain
For non-payment of rent, the eviction process typically takes 6–12 months through the fast-track juicio verbal procedure.
For illegal occupation (squatters), a separate faster procedure exists. Landlords should seek immediate legal advice — acting quickly and correctly from the outset makes a significant difference to the timeline.