How do deposits and rental contracts work?

Renting in Spain follows a national law, the LAU (Urban Leases Act), with some rules set by each region. It gives tenants long contracts and caps rent rises. Several rules changed on 8 October 2026, so check the date of your contract.

Cash to move in

On a €1,500-a-month flat, expect the first month’s rent (€1,500) and the deposit (€1,500). If the landlord asks for the maximum extra security of two months (€3,000), that is €6,000 (about £5,080) at signing. Agency fees are paid by the landlord. The moving fund calculator adds it up.

Deposit and extra security

The fianza is required by law: one month’s rent for a home. In most regions the landlord must lodge it with a regional body within a set time, often 30 days. Regions such as Asturias, Cantabria, Murcia, Navarre and La Rioja don’t require this, and Andalusia stopped requiring it from 24 January 2026. Fines for not lodging it vary by region.

On top of the fianza, a landlord can agree extra security, such as a bank-backed aval or more cash. On contracts up to 5 or 7 years it can’t exceed two months’ rent; on a temporary let, one month. Since 8 October 2026 you can’t be made to buy rent-default insurance.

How long the contract lasts

• You and the landlord agree the length. If it is shorter than 5 years (7 with a company landlord), it renews each year until it reaches that minimum, unless you give 30 days’ notice before the end of a year
• After the minimum, if neither side gives notice (4 months for the landlord, 2 for you), it renews for up to 3 more years, a year at a time
• A private landlord can end it early after the first year only if the contract says they may need the home for themselves or close family, with 2 months’ notice
• You can leave once you have been there 6 months, with 30 days’ notice. On contracts signed since 8 October 2026, no penalty can be charged for this
• Temporary lets (more than 31 days, normally up to 12 months, for a real temporary reason) can be ended after 1 month with 10 days’ notice

Rent rises

Rent can only be updated once a year, on the contract’s anniversary, and only if the contract allows it. Since 8 October 2026, any update on any home contract under the LAU, including contracts signed before May 2023, is capped by the IRAV (the official index for rental updates, published by INE, the national statistics office). For updates due before the end of 2027, if you don’t agree a new figure, the rise can’t exceed 2%. If your rent is above the state reference price for the home, it can’t rise at all. The landlord must tell you in writing; the new rent applies from the following month.

Bills and fees

• Utilities (suministros) with their own meters, such as electricity, gas and water, are your cost. Spanish households pay about €690 a year for electricity and €522 for gas (Roams, 2026)
• Community fees (gastos de comunidad) can be passed to you only if the contract says so in writing and states the yearly amount
• On new contracts since 8 October 2026, property taxes such as IBI (council tax on the owner) can’t be passed to you. The rubbish charge (tasa de basuras) follows local rules
• Set up internet early: see Phone and internet

Repairs and insurance

The landlord pays for repairs needed to keep the home fit to live in; you pay for small repairs from everyday wear. Since 8 October 2026, if you send a written request with a reasonable quote, the landlord has 15 days to respond. If they don’t, you can do the work and deduct it from future rent. Contents insurance for your own things isn’t compulsory, but the landlord’s policy won’t cover them.

Moving in and getting your deposit back

1. Make an inventory with dated photos of every room on day one, and send it to the landlord
2. At the end, both sides now sign a document recording the state of the home. If none is signed, the law presumes you left it in good condition
3. The landlord can deduct unpaid rent, bills or damage beyond normal wear
4. If the balance isn’t returned within a month of handing back the keys, it earns legal interest. Disputes can go to mediation or to court