A clause-by-clause walkthrough of the Spanish long-term rental contract (contrato de arrendamiento de vivienda) — duration, IPC rent reviews, fianza vs aval bancario, who pays community fees, utilities, IBI, maintenance and early termination — written for British, Irish, American and international tenants.
Get a Tenant Insurance Quote WhatsApp Our TeamLong-term residential rentals in Spain are governed by the Ley de Arrendamientos Urbanos (LAU) — Ley 29/1994, substantially reformed by Ley 12/2023 (Ley por el Derecho a la Vivienda). Once signed, the contract is a binding civil agreement, and many of the protections you'd expect — minimum duration, deposit handling, who pays for what — are written into law rather than into the landlord's draft.
What this means in practice: a landlord can hand you a two-page document calling it a one-year lease, but if it's your primary residence the LAU automatically extends your right to stay for up to five years (seven if the landlord is a company). You can read the consolidated LAU at the BOE — Ley 29/1994 ↗ and the 2023 housing reform at the BOE — Ley 12/2023 ↗.
Expats often sign whatever is put in front of them — sometimes in Spanish only — and discover months later that the deposit was never properly lodged with the regional housing authority, that the rent review clause is invalid, or that the "early termination" fee being demanded isn't legal. This guide walks through every clause that matters, so you sign with your eyes open.
Most Spanish rental contracts are two to six pages of Spanish legalese. Ninety percent of disputes come back to these six clauses. Read them before you sign, not after.
If the property is your primary residence, you have the right to stay five years (seven if landlord is a company), regardless of what the contract says. Annual renewals happen automatically unless you give 30 days' notice. After the initial term, a further three-year tacit extension applies.
The landlord can only update the rent once a year, by the percentage agreed in the contract. The reference is the Índice de Precios de Consumo published by the INE ↗. Under Ley 12/2023, rent updates remain capped — check the current annual ceiling before accepting any increase.
The fianza is the legal deposit — one month's rent for residential lets, two for commercial. The landlord must lodge it with the regional housing authority (IVIMA, AVS, IBAVI, etc.). An aval bancario is a bank guarantee a landlord may request in addition, capped at two extra months by law.
By default the landlord pays the gastos de comunidad (community fees), IBI and rubbish tax. Contracts can shift these to the tenant, but only if expressly written in, quantified in euros, and you agree. Always check this clause — many expats sign a contract that quietly adds €50-€150/month.
Electricity, water, gas and internet are tenant's responsibility if they have individual meters in your name. If meters are shared with other flats, the contract must spell out how costs are split. Insist that contracts are transferred or set up in your name — never pay a landlord a flat "utilities fee" without a meter reading.
The LAU splits this clearly: the landlord pays for structural repairs and anything needed to keep the property habitable (boiler breakdowns, leaks, roof). The tenant pays for small day-to-day maintenance — a broken tap washer, a blown bulb, painting touch-ups. Damage caused by misuse is always the tenant's bill.
Walk through this list with the landlord or agent. If they refuse to answer any of these points in writing, walk away — a properly run rental has nothing to hide.
We see the same mistakes again and again from clients who only call us once a problem has already happened. Avoid these and you avoid most disputes.
Your contract sets out your legal obligations. Tenant insurance (seguro de hogar para inquilinos) covers the financial side — your contents, your liability to neighbours, and your obligations under that contract.
We are fully authorised by Spain's insurance regulator, the Dirección General de Seguros y Fondos de Pensiones.
Policy wording, claims and contract questions — all explained in plain English by people who actually live in Spain.
Contents, civil liability to the landlord and neighbours, water damage caused to the flat below, accidental damage — the cover tenants actually need.
We answer when you need us — weekends and bank holidays included. Burst pipes and break-ins don't respect office hours.
If your washing machine floods the flat below, you're liable. Our tenant policies include civil liability cover from day one — many Spanish defaults don't.
If you need to claim, we walk you through it — translating, calling the insurer, chasing the loss adjuster.
Renting in Spain comes with cover you should think about from day one. Make sure the rest of your insurance is in order too.
Contents, civil liability and tenant-specific cover designed for expat renters and homeowners.
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Cover for trips home, EU travel and worldwide journeys from your Spanish base.
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Private medical cover for residency visas, families and retirees.
Read the guide ›Other essential reading for expats setting up home in Spain:
Your rental contract sets out your obligations to the landlord — the right tenant insurance protects you from liability claims, water damage to neighbours, and theft of your belongings. Get a quote — we'll compare leading Spanish insurers and explain it all in English.
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