Letting a new build long term in Spain: the rules for landlords
A Spanish residential tenancy lets the tenant stay for at least five years when the landlord is an individual, with a one-month deposit. Shorter ‘seasonal’ lets need a genuine temporary reason. Here are the basics of the tenancy law and the 2023 housing law, and what changed in October 2026.
By Investidad advisory team · Last reviewed 16 Oct 2026
The tenancy law: LAU
Lettings of homes as the tenant's permanent residence are governed by the Ley de Arrendamientos Urbanos (Ley 29/1994). Many of its tenant protections cannot be waived by contract, so a lease that departs from them is void on those points. The key terms for a landlord who is a private individual:
- Minimum duration
- RULE5 years at the tenant's option (7 if the landlord is a company): a shorter agreed term renews year by year until then (art. 9)
- Tenant leaving early
- RULEPossible after six months, with 30 days' notice (art. 11)
- After the minimum
- RULERenews tacitly year by year for up to 3 more years unless the landlord gives 4 months' notice or the tenant 2 months (art. 10)
- Recovering the home for your own use
- RULEOnly if stated in the contract, and only after the first year, for you or close family as permanent home (art. 9.3)
- Deposit (fianza)
- RULEOne month's rent, compulsory (art. 36); most regions require it to be lodged with a regional body
- Extra guarantees
- RULENo more than two months' rent on top of the deposit for leases within the 5/7-year minimum
- Agency and contract costs
- RULEPaid by the landlord (art. 20, since Ley 12/2023)
| TERM | RULE |
|---|---|
| Minimum duration | 5 years at the tenant's option (7 if the landlord is a company): a shorter agreed term renews year by year until then (art. 9) |
| Tenant leaving early | Possible after six months, with 30 days' notice (art. 11) |
| After the minimum | Renews tacitly year by year for up to 3 more years unless the landlord gives 4 months' notice or the tenant 2 months (art. 10) |
| Recovering the home for your own use | Only if stated in the contract, and only after the first year, for you or close family as permanent home (art. 9.3) |
| Deposit (fianza) | One month's rent, compulsory (art. 36); most regions require it to be lodged with a regional body |
| Extra guarantees | No more than two months' rent on top of the deposit for leases within the 5/7-year minimum |
| Agency and contract costs | Paid by the landlord (art. 20, since Ley 12/2023) |
The 2023 housing law
Ley 12/2023, the housing law, added tools that apply mainly where a regional government declares a stressed housing market area. In those areas, the rent on a new lease is generally limited by the rent of the previous lease, landlords with many homes (grandes tenedores) face a cap by reference index, and tenants can ask for extra annual extensions. Outside declared areas, these limits do not apply. Annual rent updates within a lease are capped by a reference index for all landlords.
Whether an area is declared stressed depends on the regional government and changes over time. Check the current position for the town before you rely on a rent level.
Seasonal lets and the October 2026 changes
An alquiler de temporada is a let for a temporary need rather than a permanent home: a work posting, studies or medical treatment, for example. It sits between a holiday let and a long-term tenancy and, until October 2026, fell outside the LAU's minimum duration.
Real Decreto-ley 29/2026, in force since 8 October 2026, replaces it with a ‘temporary housing’ lease: the contract must state a real, provable reason why the tenant is away from their usual home, last more than 31 days and generally no more than 12 months. Without a genuine reason, or if the same parties chain contracts, it is treated as an ordinary residential tenancy with its five-year protection. Extra guarantees are capped at one month. Seasonal contracts signed before 8 October 2026 keep their old rules until they end.
Practical points for a new build
- Tax: non-residents pay IRNR on the rent: 19% on net income for EU/EEA residents, 24% on gross for others. See how to estimate net yield.
- Energy certificate: you must give the tenant the energy certificate; an A or B rating is a selling point.
- Warranties: defects reported by the tenant in the first years may fall under the LOE liability periods; report them to the developer in writing.
- Community rules: a long-term let needs no community approval, unlike a tourist rental.
- Regional rules: some regions add their own deposit and contract requirements; use a local lawyer's contract.
Questions buyers ask
- Can I let for one year and then sell?
- Not freely. If the home is the tenant's permanent residence, they can stay for five years even if you agreed one. A sale does not end the lease in most cases, so the buyer would take over the tenant.
- Can I ask for three months' deposit?
- The legal deposit is one month. On top of it you can agree extra guarantees of up to two months for a lease within the five-year minimum, or one month for a temporary-housing lease under the October 2026 decree.
