legal

What are the rental and tenancy laws in Spain?

Spain's rental law (Ley de Arrendamientos Urbanos - LAU) governs residential tenancies.

Key points for property investors: minimum long-term rental contract duration is 5 years (7 years for corporate landlords), with automatic annual renewal up to 3 more years.

Rent increases are regulated and tied to an official index.

Security deposits of 1 month's rent are legally required and must be deposited with the regional housing authority.

Evicting a non-paying tenant requires a court order and can take 6-12 months.

For holiday/tourist rentals, separate regional regulations apply — on the Costa Blanca, you need a tourism license (licencia turística), and many communities restrict short-term rentals.

Rental income is taxed at 19% for EU non-residents and 24% for non-EU, with EU residents able to deduct expenses.

WOW-Estates advises investors on rental regulations and licensing requirements.