Investment approach
Residential lease in Spain: which clauses the 2026 decrees changed
The LAU requires at least four items, and anything worse for the tenant than the law has no effect. Which template clauses went stale after the autumn 2026 decrees and what refusing renewal costs.
There is no mandatory form of residential lease in Spain, but the law names the minimum: the parties, the flat, the term and the initial rent (art. 37 LAU, the Ley de Arrendamientos Urbanos, or Urban Leases Act). Any clause that worsens the tenant's position against the LAU is deemed unwritten (art. 6). From 8 October 2026 RDL 29/2026 (Real Decreto-ley 29/2026) changed the rules on indexation, costs and guarantees, so templates drawn up earlier have to be reviewed.
A residential lease is an agreement under which the owner hands over a flat for the tenant's permanent residence for a rent. Its content is not set by the parties alone: the mandatory rules of the LAU apply even if the text says nothing about them.
Which clauses changed from 8 October 2026
The clauses about money have changed: indexation, costs, guarantees, agency services. The RDL 29/2026 has not yet been validated by the Congreso (as of 13 October 2026), so before signing check the wording in force with an abogado (lawyer).
| Contract clause | What the LAU now requires | What to write in |
|---|---|---|
| Type of contract | A seasonal contract requires a real reason stated in the text, otherwise it is ordinary from the date of signing (art. 7.2) | For a seasonal contract, the reason and the document proving it |
| Indexation | Only if the parties expressly agreed it; increase no higher than the IRAV (the rental reference index) (art. 18.1); until 31.12.2027 rent is not raised above the index, otherwise by no more than 2% without a new agreement | The index, the month of calculation, the review date |
| General costs of the building | Passed on only in writing with an annual sum; taxes on the flat cannot be passed on (art. 20.1) | The annual sum of the comunidad (community of owners) costs, if the tenant bears them |
| Agency services and drawing up the contract | Not passed to the tenant, directly or indirectly (art. 20.2) | Nothing: the owner bears these costs |
| Guarantees | Fianza (deposit) of one month's rent (art. 36.1); additional guarantee of up to two months' rent, and under a seasonal contract up to one; non-payment insurance cannot be required (art. 36.5) | The amounts of the deposit and the guarantee, the return procedure |
| Repairs | After 15 calendar days without a reply, the tenant may carry out the necessary repair and deduct it from the rent (art. 21.5) | The address and the channel for sending repair requests |
| End of the contract | The parties sign a document on the condition of the flat when the keys are handed back; without it the flat is deemed returned in good order (art. 36.7) | The inspection procedure and the form of the report |
| Sale of the flat | The right of preferential purchase (derecho de adquisición preferente) cannot be waived (art. 25.8) | Nothing: such a clause is void |
How the term and renewal work
The minimum term for letting a main residence is five years if the owner is an individual and seven if it is a company: a short contract is extended each year up to that term unless the tenant objects (art. 9.1). Then, until 14 November 2026, annual extension for up to three more years applies, unless the owner gave notice of refusal four months ahead and the tenant two (art. 10.1).
From 15 November 2026 RDL 28/2026 changes art. 10. After five (seven) years the contract is extended at once for another five (seven) years, unless the owner declares a refusal no later than six months ahead and the tenant two. By refusing, the owner pays compensation, except in the cases of art. 10.2, for example when the owner needs the flat for personal use or for relatives up to the second degree as a permanent home. If the flat is sold with the tenant in place, the obligation passes to the buyer. The Congreso has not yet validated this decree-law either.
Contracts that on 15 November are already in annual extension run it out under the old rules, and notices of refusal sent before the decree-law was published (7 October 2026) keep their force without compensation (disposición transitoria única, the single transitional provision).
What refusing renewal costs: a worked example
Worked example, not a forecast. Compensation equals the larger of two sums: 12 months' rent at the upper limit of the state price index for that flat, or one such month's rent for each year of residence (art. 10.1 as worded by RDL 28/2026). The upper limit of the index is assumed to be 1,500 € a month.
| Tenant's length of residence | 12 months' rent | One month's rent per year | Compensation |
|---|---|---|---|
| 5 years | 18,000 € | 7,500 € | 18,000 € |
| 10 years | 18,000 € | 15,000 € | 18,000 € |
| 15 years | 18,000 € | 22,500 € | 22,500 € |
If the individual index value for the flat cannot be obtained, the calculation runs from the current rent under the contract. For an investor this is a line in the exit plan: selling an empty flat and selling it with a tenant give different figures, as covered in the article on buying a flat with a tenant.
What else to check before signing
- The exact details of the parties with their documents and the address of the flat, with the storage room and parking space if they are let with it.
- An inventory of furniture and appliances with photographs, if the flat is let furnished. How to choose between the options is covered in the article furnished or empty.
- An email address for notices: the LAU allows it if the authenticity, the content and the time of sending are confirmed (art. 4.6).
- The method of payment: under art. 17.3 LAU rent is paid by electronic means, cash only as an exception.
- The rent cap, if the flat is in a stressed housing market zone (zona tensionada): the new rent is tied to the previous one (art. 17.6), in more detail in the article on the stressed market zone.
- Depositing the fianza with the Incasòl (the Catalan body that holds rental deposits), the procedure in the material on registering the fianza.
When a standard contract does not fit
A standard main-residence contract does not fit a seasonal let: that needs a reason, a different term and a different guarantee. It is also unsuitable for letting by the room, where the sum of the room rents cannot exceed the rent for the whole flat (art. 17.9), and for commercial premises, which the LAU regulates separately.
Nor is it wise to take someone else's template when the owner is a company: the minimum term is seven years, and the exception "the flat is needed by the owner" does not apply to a company (art. 10.2). If the contract is for a flat that you are only choosing to let, it is better to build the letting terms into the calculation before the purchase, as part of the investment analysis.
Questions and answers
Is a written lease mandatory in Spain?
Each party may demand written form, and at the tenant's request it is mandatory (art. 37 LAU). An oral contract remains valid, but arguing over its terms without a text is hard.
Can the IBI be passed to the tenant in the contract?
Not from 8 October 2026: taxes linked to the flat are not passed to the tenant unless the tenant is the taxpayer (art. 20.1 LAU as worded by RDL 29/2026). The building's general costs can be, but in writing and with an annual sum.
Who pays the agency for drawing up the lease?
The owner. The costs of preparing, drawing up, amending or renewing the contract are not passed to the tenant under any name (art. 20.2 LAU).
Can I decline to renew after five years without compensation?
Until 14 November 2026 the earlier regime applies. From 15 November 2026, under RDL 28/2026, refusing renewal as a rule requires compensation: 12 months' rent at the index or one month's rent for each year of residence, whichever is larger. The Congreso has not yet validated the decree-law.
