Renting isn’t only about the price.

Legal Framework of Rental Agreements in Spain

In Spain, rental agreements are governed by the Urban Leases Act (Ley de Arrendamientos Urbanos – LAU), which establishes rights and obligations for both parties. For many foreign landlords and tenants, these rules can be unfamiliar or confusing.

At Prius Abogados, we draft and review contractual clauses so that the agreement can be signed with full legal certainty, avoiding future sources of conflict.We establish a legal framework that protects your investment if you are a landlord, and your peace of mind — and that of your family — if you are a tenant.

What Type of Rental Agreement Do You Have?

Primary residence: when the property is intended as the tenant’s permanent home. The law establishes a minimum duration (5 years if the landlord is an individual; 7 years if the landlord is a legal entity).

Seasonal rental: when the temporary nature of the stay is justified by work, studies, medical treatment, or similar reasons. This must be clearly specified and supported.

Use other than residential: commercial premises, offices, garages, etc. These agreements are mainly governed by what the parties agree, with very limited legal restrictions.

The classification does not depend on the title of the contract, but on the actual use of the property and the proven intention of the parties.

Minimum Duration and Extensions

In residential leases, tenants have the right to remain in the property for 5 years (or 7 years if the landlord is a company), even if the contract states a shorter period.

After this period, the contract is automatically extended for one additional year if neither party notifies their intention not to renew.

The landlord may recover the property earlier only if this right is expressly reserved in the contract and the legal conditions established by the LAU are met.

In leases for non-residential use (commercial premises, offices, warehouses, etc.), the Urban Leases Act (Ley de Arrendamientos Urbanos – LAU) does not establish a minimum or maximum duration. The term is determined by the parties’ agreement, and failing that, by the Spanish Civil Code.

At Prius Abogados we advise you on initial terms, possible extensions, and the notice periods required if you wish to terminate or not renew the lease.

Security Deposits and Guarantees

The mandatory legal deposit is one month’s rent for residential leases, or two months’ rent for non-residential use.

Additional guarantees may also be agreed, such as: bank guarantees, additional deposits and personal guarantors. These guarantees must be reasonable and justified by the objective risk. Excessive guarantees may be considered abusive.

Rights and Obligations of the Parties

The landlord must maintain the property in habitable condition, carry out necessary repairs, and ensure the tenant’s peaceful use of the property.

The tenant must pay the rent on time, take proper care of the property, and return it in good condition.

The parties may agree on the payment of utilities, community fees, taxes, etc., but these obligations must be clearly stated in the contract. Some common clauses — such as waiving legal extensions or disproportionate penalties — may be legally ineffective.

 Registration of the Contract and Communication to Third Parties

Registering the lease in the Spanish Land Registry is not mandatory, but it is advisable if the tenant wishes to protect their rights against third parties. If the property is sold or subject to mortgage enforcement, the contract may remain in force or be terminated depending on whether it has been registered. It may also be necessary to submit the contract to the Spanish Tax Agency (forms 600, 806, etc.).

At Prius Abogados we advise you so that your lease agreement is fully effective against third parties, and our tax department manages all required filings.

Most Common Disputes and How to Prevent Them

• Non-payment of rent: activate termination clauses, send formal notice, and initiate legal proceedings if necessary.
• Damage to the property: document the initial condition with an inventory and photographs.
• Delay in returning the deposit: the legal deadline is one month from the return of the keys.
• Proper legal advice beforehand prevents many disputes.

At Prius Abogados, we focus on prevention rather than reaction.

Eviction: Procedure, Timeframes and Limits

Legal action to recover the property may begin after a prior negotiation period.

Court proceedings may take up to one year, depending on the court.

The law allows options such as opposition or payment to halt eviction, so each case must be evaluated individually.

At Prius Abogados, our litigation department handles the entire process, from the mandatory pre-litigation phase to the final legal consequences of non-compliance.

Advantages of Working with PRIUS ABOGADOS

• We draft and review contracts with a preventive legal approach.
• We protect your rights as landlord or tenant.
• We handle legal proceedings when necessary, but above all we work to avoid them.
• We provide services in Spanish, English and Finnish, including remote assistance.

Our commitment to you

At Prius Abogados we listen, analyse and propose clear solutions before signing, helping you avoid years of conflict and litigation.