Renting a property in Spain: Everything You Need to Know

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Renting a property in Spain as a foreigner can be an exciting journey, but it comes with its own set of requirements and procedures. While the rental process for foreigners is almost identical to that of Spanish citizens, the main difference lies in the identification documents you need to provide. Here’s a detailed look at what you’ll need to get started.

First and foremost, you’ll need appropriate identification. For foreigners, this typically means obtaining a NIE (Número de Identificación de Extranjero). This Foreigner Identification Number is essential for anyone who wants to live or work legally in Spain. Find out more about the Spanish NIE in our post here.

If you don’t have a NIE, don’t worry—you can still sign a rental agreement with your passport. You simply need to use your passport number as your primary identification on the rental agreement. This, however, can only be accepted in short-term or midterm rentals of up to 3 months, as if you wish to stay in Spain longer you must obtain an appropriate NIE and a residence permit.

Next, be prepared to show proof of your financial stability. Landlords/lessors in Spain need to ensure that their tenants can reliably pay rent. If you’re employed, you’ll need to present a copy of your employment contract, stamped and signed by your employer. For students, a certificate of studies from your educational institution will suffice.

If you don’t work, you may find it more challenging to prove your financial stability to landlords, so don’t be surprised if they want to see your bank statements, tax returns, or any other proof of your stable passive income.

Moreover, having a guarantor can be a big plus. It could be a bank guarantor or a personal guarantor, often a parent or close relative. Having a Spanish bank account is often necessary for paying rent and utility bills. However, some landlords/lessors may accept payments from international bank accounts, just make sure you transfer your rent with “total transfer costs on the sender”.

When you are planning to rent an apartment in Spain, the tenancy agreement (contrato de arrendamiento) is a crucial document. It is the official and binding document that spells out all the rules and expectations for both you and your landlord/lessor.

This contract outlines the main terms and conditions of the rental arrangement, ensuring that both parties are protected and understand their respective rights and obligations.

A clear and comprehensive tenancy agreement is essential for preventing disputes and ensuring a smooth rental experience.

Let’s break down what you need to know about the key components and legal considerations of a tenancy contract in Spain concerning short-term, midterm, and long-term rentals in Spain.

Lease duration – the agreement should clearly state how long you’re renting for. The Spanish law lets you extend long-term leases up to five years (seven if the landlord is a company) even if your original lease was shorter. Also, it should include how you can renew the lease.

Rent amount and payment terms – the monthly rent should be clearly mentioned, along with when and how it should be paid. Also, make sure that the payment details are clear.

Security deposit – typically you will have to pay a guarantee deposit equal to one month’s rent for unfurnished places and two months for furnished ones. Some owners prefer to receive a large amount as an “additional guarantee”. The tenancy agreement should explain the conditions for getting your deposit back, including any deductions for damages or unpaid rent. Spanish law requires the lessors to transfer the deposit to a special public agency corresponding to the location of the rented property. It will be returned to you within one month of the lease’s end, when the regional agency returns the deposit to the lessor’s account, and provided you don’t have any pending debts or obligations with the landlord.

Maintenance and repairs – tenants are usually responsible for minor repairs (e.g. changing light bulbs or clogged pipes) and landlords are generally responsible for the major ones (e.g. electrical systems). The contract should specify the process for reporting and addressing maintenance issues, and clearly identify which party responds for each type of issue.

Inventory of furnished items – for furnished apartments, there is normally a detailed inventory list of all items that come with the apartment. Both parties should sign this list to acknowledge its accuracy. We always recommend that you take photos of the state of the property, furniture, and appliances the first day of the lease.

Ending the lease – the contract should specify how much notice you need to give before moving out, usually 30 to 60 days, and if there is any period of obligatory rent, as well as the amount of compensation you need to pay in case of early termination.

By thoroughly understanding your tenancy agreement, you can avoid surprises and enjoy your stay in Spain with peace of mind.

The tenant has the right to reside in the rented property during the lease term. Also, the tenant has the right to privacy, enjoy the property in the conditions suitable for the purpose of the rent, and all major repairs be done by the landlord (unless the damage was done by the tenant).

There are certain rights that need to be specifically regulated by the contract, e.g. the right of having domestic animals in the rented property, possibility to receive visitors, carry out any professional activity from the rented place, or the right to preferential acquisition in case of sale.

The landlord has the right to receive rent payments on time as agreed, and to evict the tenant for non-payment of rent or serious breaches of the tenancy agreement. Moreover, the landlord can inspect the property to ensure that it is being properly maintained, and to show the property to the new tenants close to the lease termination date.

It is quite common that the repairs obligation passes to the tenant, but it must be clearly regulated in the contract.

Short-term rental contracts in Spain are very heavily regulated and can only be done if the property you rent has a specific licence, called “licencia de alquiler turístico”.

This type of rent is meant for stays shorter than 30 days, and is a frequent source of conflict with the neighbours that reside in the buildings with mixed, tourist and residential apartments.

The owners will ask you to comply with the rules of the building, not make parties or noisy activities in the flat, and respect the right of the others to rest.

In many regions, landlords are required to register their property and obtain a licence for short-term rentals. This is particularly strict in popular tourist destinations like Barcelona, Madrid, and the Balearic Islands, where local authorities enforce regulations to control the short-term rental market. As a tenant, it’s prudent to ensure that the property you are renting is legally registered.

These rentals typically come fully furnished and equipped, making your move-in process smooth and hassle-free, similar to check-in a hotel.

Mid-term rental contracts in Spain are perfect for those who plan to stay for less than a year, whether you’re a tourist, a business traveller, or a student. These rentals also usually come fully furnished and equipped, making the rental payments higher than in a long-term rent.

Spain’s rental laws distinguish between midterm and long-term rentals. Midterm rental contracts in Spain, typically defined as leases for less than one year, fall under the umbrella of “seasonal rentals” (alquiler de temporada). These are regulated differently from long-term rental contracts in Spain, which are governed by the Urban Leases Act (LAU – Ley de Arrendamientos Urbanos).

The Spanish law provides certain protections for tenants, even in midterm rentals. For instance, landlords cannot increase the rent arbitrarily during the agreed rental period. Any rent adjustments must be clearly stated in the contract.

In summary, to ensure a legally compliant and hassle-free rental experience, verify the property’s legality, read the contract thoroughly, keep records, and seek legal advice in case of any doubts.

Long-term rental contracts in Spain, typically defined as leases lasting one year or more, offer stability and security for tenants who look for a place of usual residence. Governed by the Urban Leases Act (LAU – Ley de Arrendamientos Urbanos), these rentals provide significant tenant protections. For instance, tenants have the right to extend their lease up to five years (or seven years if the landlord is a company), ensuring long-term residence security.

Long-term rental contracts in Spain must clearly outline the monthly rent, payment terms, and responsibilities for maintenance and repairs. Additionally, landlords are required to return the security deposit within one month of the lease’s end, provided there are no damages. To ensure both legal compliance and financial stability, landlords may also require proof of income, such as an employment contract or bank statements.

Working with a real estate agency can enhance your experience of renting an apartment in Spain. Their knowledge, resources, and support streamline the process, making it easier for you to find and secure the perfect apartment. Whether you’re navigating the rental market for the first time or seeking professional assistance, agencies offer invaluable services that simplify the journey to your new apartment.

Real estate agencies have extensive databases of available rentals, making it easier to find an apartment that matches your criteria. They can save you time by filtering properties based on your preferences, such as location, size, budget, and amenities.

They can also offer valuable advice such as on fair rental prices, helping you make informed decisions.

Agencies typically charge a fee for their services, often equivalent to one month’s rent plus VAT (IVA) or to a 10% of the annual rent plus VAT (IVA). One of the recent changes of the Urban Leases Act – la LAU, obliged the property owners to pay such agencies commissions.

1. Idealista is one of Spain’s largest real estate websites which lists properties from various agencies and private landlords, making it a great starting point for finding rental apartments across the country.

2. Fotocasa is similar to Idealista and offers a wide selection of rental properties and provides tools and resources to help you navigate the rental market.

3. Spotahome is an online booking platform similar to tourist rentals, but for longer stays.

4. Engel & Völkers is an international real estate agency and has a strong presence in Spain, with offices in major cities like Madrid, Barcelona, and Valencia.

5. Lucas Fox is specialising in luxury properties. It has offices in key Spanish cities and offers personalised services for finding high-end rental apartments.

6. Savills Aguirre Newman is another renowned international agency that provides extensive rental listings and professional services to help you find suitable apartments in Spain.

7. Tecnocasa is a well-known local agency with a wide network across Spain that offers a variety of rental properties and professional assistance.

When selecting a real estate agency, consider their reputation, experience, and client reviews. Look for agencies specialising in rentals and with a strong presence in your desired area. Recommendations from friends or colleagues and online reviews can also guide you to reliable agencies.

You can also look for assistance from one of the real estate agents, who are individual professionals acting as intermediaries between property owners and potential tenants. They work for you in a similar way as property hunters, and provide a highly customised service experience by finding you exactly what you need. They can access all available properties on the market as they are not limited to the offers listed on one of the agencies only.

In this case you will have to pay for their services as a realtor will act as your own agent.

How does rent-to-buy work in Spain?

Rent-to-buy apartments in Spain offer a great opportunity for anyone wanting to own their own place without the immediate pressure of a hefty down payment or the complexities of a mortgage.

This option is perfect if you’re unsure about committing to a property long-term, test out living in a place before or need flexibility in your financial planning (e.g. you need more time to save up). In short, it’s like renting with the option to buy later at a fixed price.

Rent-to-buy, also known as lease option or lease purchase, is a popular arrangement in Spain that offers a flexible pathway to owning an apartment. It’s like test-driving a car before deciding to purchase it.

1. Rent Payments – Initially, you pay rent each month to the landlord, just like in a standard rental agreement. The rent amount is typically agreed upon upfront and remains consistent throughout the rental period.
2. Option Fee or Provision – The provision or option fee is typically paid upfront when signing the rent-to-buy agreement. This fee secures your right or option to purchase the property at the agreed-upon price within a specified period. It is usually a small percentage of the purchase price and serves as a commitment to the potential purchase. The provision serves as a price for the option to buy the property in the future. It demonstrates the tenant’s serious intent and commitment towards potentially purchasing the apartment. By paying this upfront fee, tenants gain the exclusive option to buy the property at a predetermined price, offering both parties clarity and assurance in the transaction.
3. Credit Towards Purchase – In some cases, a portion of your monthly rent payments may be credited towards the purchase price of the property. This credit acts like a down payment when you decide to exercise your option to buy.

First because of the affordability. In fact, instead of needing a large sum upfront, you can gradually save towards owning the apartment while renting in Spain.

Second, you have the opportunity to ‘try before you buy’. Living in the apartment allows you to see if it fits your lifestyle and needs before making a long-term commitment.

Third, the apartment is locked-in Price. Indeed, the purchase price is agreed upon upfront, so you won’t be affected by any future price changes.

You have to make sure that the rental and purchase agreement are clearly written in the contract, including how the rent-to-buy option works. Also, check with attention the property to ensure it’s in good condition and meet your expectations. Finally talk to professionals if it’s needed.

Renting a property in Spain involves navigating through legal requirements, exploring different rental options, and seeking assistance from either real estate agents or agencies. It is always a good idea to have your contract checked by a qualified lawyer before you sign it.

Whether your stay is short-term or long-term, these professionals simplify the process by providing personalised guidance and a wide range of property options.

It’s essential to understand your rights, responsibilities, and the necessary paperwork.

Additionally, considering legal assistance can provide further clarity and assurance throughout the rental process, ensuring you find your ideal apartment in Spain with confidence.

If you need personalised advice, don’t hesitate to consult with a local real estate lawyer or an international law firm that specialises in Spanish property law such as Klev&Vera.

Don’t hesitate to contact us using the form below or through our contact page if you need assistance renting or buying an apartment in Spain. Our team of experts will assist you at every stage of the process.

This article is written in collaboration with Juliette Darrort, a member of the Legal Support Team at Klev&Vera.