Understand how the rental process in Spain works and what you need to do to get the right rental agreement for your needs.
Getting started in Spain with a rental property is the perfect way to get a feel for your chosen location to see if it’s right for you before buying a property in Spain.
How much does it cost to rent a property in Spain?
The average monthly rent in the country is about 600 euros.
Rental prices vary greatly depending on location. If you are moving to Madrid or want to live in Barcelona, be prepared to pay a lot. There is nothing surprising here – it is where all the jobs and excellent infrastructure are concentrated.
You will find more affordable rentals in the south of Spain, and still cheaper, if you look outside the city in a smaller town or inland.
Entering any unfamiliar rental market can seem a bit daunting, especially if you don’t speak the local language. So, it is worth doing your homework in advance.
Search properties online for rent
As in your own country, if you are looking to rent a property in Spain, the internet is the perfect place to start your search.
To get an idea of the types of properties on the rental market and prices in your chosen location, you can start with real estate sites such as Idealista, Easypiso or Spotahome.
When searching online, you may find that quite a few advertised properties will not be available for rent when you contact an agent.
Agents often “forget” to remove unavailable properties from their site. Thus, they have more potential customers to contact them. Once you’re on their books, they’ll be more likely to do business with you.
Furnished or unfurnished?
When searching online, remember that apartments and houses in Spain are usually advertised with monthly rent and living space in square meters. As a rule, the description indicates whether the property is furnished or not.
However, “furnished” can be varied: either with everything you might need, including kitchen appliances, or with just a few pieces of furniture here and there.
The same with “no furniture”. It can either be a completely empty space without carpets and even simple electrical appliances, or come with a few things left by the owner.
It is important to ask your agent or landlord to confirm in writing what furniture and appliances you will be using. Renovating an unfurnished property can be expensive.
As a rule, a long-term lease requires an energy efficiency certificate. If you don’t want to pay for heating in winter, you should pay attention to the energy efficiency class of the property you choose.
Looking for a rental in Spain on your own
You can be a little more proactive and search for rental properties yourself. This usually involves driving around the desired neighborhood looking for “Se Alquila” signs, a sign that the owner wants to rent out their property.
Communicating directly with the owners often means you need to speak the language.
On the other hand, if you speak Spanish and decide to deal with the owner directly, this will allow you to negotiate the rent as the landlord will not pay any agency fees.
Working with a real estate agent
There are advantages to working with an agent: they speak Spanish, know the local customs, and can usually help you with things like connecting and disconnecting communications to get the property move-in ready.
If you ask an agent to help you find a suitable rental property, some agents may try to charge you for the service.
Ask your agent about the “finder’s fee” in advance. Any fees paid to the agent should be paid by the landlord, not the tenant, so make sure this is sorted before you commit.
It is best to work with a local agency in the desired area as they know the market and should have better connections with landlords. To find an agent in a specific city or region, you can check the Inmobiliarias section of the local yellow pages.
Applying for a rental property in Spain
Once you find a suitable agent, the agent will usually guide you through the application process.
In some cases, you may be asked to deposit the equivalent of one month’s rent when you start the application process. This amount will be included in your deposit later when the contract is signed.
Do I need a NIE if I rent a property in Spain?
So. You need a NIE for literally everything: if you want to rent/buy a flat or house, if you apply for electricity, gas, water, TV, internet, telephone etc.
The complete list of documents required for rent:
- Document for residence in Spain
- Proof of your ability to pay the rent (showing you have sufficient savings or regular income such as pension income, dividends, pay stubs, etc.)
- Spanish tax identification number NIE
- Passport or ID
- Personal recommendations (sometimes)
Rental deposit in Spain
You will be asked to pay a deposit either on the first day of the rental period or in advance when you apply for the rental.
The initial rental cost is usually the first month’s rent, possibly an agency fee (if agreed with your agent) and a deposit. The security deposit, according to the law, must be equivalent to one month’s rent.
Make sure you pay the deposit by bank transfer, not cash. Your landlord or agent will usually keep your deposit in a separate account.
There are deposit protection schemes set up by the government in different parts of Spain, but most agents and landlords do not use them. And even if they do, there’s no guarantee that your deposit will be returned to you by the end of the lease.
Not getting your deposit back is a common problem in Spain, so much so that many law firms have taken it upon themselves to represent tenants in court, fighting their landlord for the deposit money.
Some expats in Spain do not pay the last month’s rent when they move out and do not require a deposit back. However, this is not recommended as it can lead to problems.
The best thing you can do is to maintain a friendly relationship with your landlord and ask them to inspect the property a few weeks before you leave. That way, you’ll have some time to fix any issues before you have to move out and get your security deposit back from the landlord when you get the keys back.
Otherwise, the lessor has the right to keep the deposit for one month. If the deposit is kept for more than one month, the landlord is legally obliged to pay interest on the funds.
It’s also a good idea to keep a record of any work you carry out to improve or repair our accommodation during your tenancy, which you can use to support your case if there is a dispute.
Lease agreements in Spain ( contrato de arrendamiento )
A rental agreement in Spain is valid both in written and verbal form. However, it is advisable to get a written translation of the contract from an Abogado, Gestor or translator if you do not speak Spanish.
If there is a dispute between you and your landlord about exactly what was agreed in the verbal agreement (ie who pays for the utilities), neither party has the means to prove or disprove their position. Therefore, a written contract meets the interests of both the lessee and the lessor.
All leases must be in Spanish. The contract itself is a very useful document to have on hand: you will need your Spanish contract to register with the Padron (with local authorities), open a Spanish bank account or apply for permanent residence in Spain.
If you have a longer lease (more than a year), you have more rights as a tenant under Spanish law. For example, as a long-term tenant, you can extend the contract for five years.
This applies to cases where the lessor is not going to live in the property personally after a year. Then they must give two months’ notice.
When you renew the contract, the landlord can only increase the price by the ” Índice de garantía de competitividad ” (Spanish National Price Index) – click the link to see the latest figure.
A landlord can increase the rent if they improve the property, provided the increase meets certain standards and is less than 20% in total.
Therefore, long-term contracts are not very common in Spain. A typical lease is for 11-12 months with a clause to extend if required.
If you want to leave before the end of the contract, let us know at least 30 days before the end date. If you give notice to quit within this period, you will have to pay rent until the end of the contract.