Residential lease in Spain 2026: Urban Leases Act, rights and obligations

Legal framework: LAU and Housing Act 2023

Residential leases in Spain are governed by Law 29/1994 (Urban Leases Act, LAU), significantly amended by Law 12/2023 of 24 May on the right to housing and Royal Decree-Law 7/2019. Most tenant protections are mandatory law and cannot be waived by contract.

Contract duration

Tenants have the right to remain in the property for 5 years (7 if the landlord is a legal entity). The landlord cannot recover the property before that term unless they expressly stated a need to recover it for their own use at signing.

After the initial term, the lease auto-renews annually for up to 3 more years unless either party gives notice (landlord: 4 months; tenant: 2 months).

Deposit and additional guarantees

A mandatory deposit of one month's rent is required. The landlord must lodge it with the regional body. Additional guarantees (bank guarantee, extra deposit) are permitted but capped at two months' rent since the 2023 Housing Act.

Rent updates

The CPI was removed as the update index. Rent may only be updated by the Competitiveness Guarantee Index (IGC) or the new INE reference index (from end-2024). In tensioned market areas, the increase cannot exceed that index regardless of what the contract says.

Eviction for non-payment

The special summary eviction procedure (Arts. 250.1.1º and 439 LEC) allows the landlord to obtain a hearing date and eviction order simultaneously. The tenant can avoid eviction by paying the debt before the hearing date (enervation), unless a prior enervation has already occurred.

Lexiel helps real estate and housing lawyers draft lease agreements, find updated case law on LAU interpretation and eviction, and advise on the 2023 Housing Act requirements.