Note

Long-term rental law in Spain for landlords

§ 1The framework

Spain’s urban lettings act, the LAU, regulates leases of homes as main residences and leases for other uses. It is a mandatory framework in many points, so the parties cannot always agree otherwise. The text we read was the consolidated version updated on 7 October 2026, read to article fourteen. This page belongs to the chapter in buy to let explained.

§ 2Scope

A lease of a dwelling for permanent housing falls under the act. A lease for a business or professional use is governed by another part. The act excludes some lets, among them temporary tourist-style lets of a furnished dwelling that do not exceed thirty-one days and are promoted through tourist channels. A house to rent out explained explains how to choose a home to let.

§ 3Term and extension

The parties can agree a term, but if it is shorter than five years, or seven years for a legal-person landlord, it is extended by annual extensions up to that minimum, unless the tenant gives notice. A lease with no term is treated as one year. A landlord who is an individual may exclude the extension after the first year by stating in the contract that he or she needs the home for permanent housing for themselves or close relatives, with at least two months’ notice. If the landlord does not occupy it within three months, the tenant may choose to return or to claim compensation.

§ 4After the minimum

The current text lets the lease continue by annual periods for a further limit unless a party gives notice, four months before the end from the landlord and two months from the tenant. The consolidated text shows a future article from a decree-law that would apply from 15 November 2026, with tacit renewals and longer landlord notice. It had not taken effect when we read it, and it depends on validation by the standing committee of the Congress, which on 26 October had not convened a session; press expects a vote around 12 November. The text also shows rules for tenants in vulnerable situations and in stressed markets.

§ 5Tenant withdrawal

After six months the tenant may withdraw with thirty days notice, and the landlord has no right to compensation for that.

§ 6Selling

A buyer takes over the lease. A property with a tenant explained explains buying a let home.

§ 7Rent and deposit

The articles of the act on rent, updates and the deposit were not in the part we read. A second decree-law, 29/2026, in force since 8 October and also awaiting validation, limits rent updates until 31 December 2027: no increase if the rent is above the reference maximum, otherwise what the parties agreed and by default no more than 2%. It also lets a main-home tenant whose mandatory extension ends before 31 December 2028 ask for up to two additional years, unless the landlord needs the home. We read these in the gazette, not the regulations that apply them. Stressed-market rent limits appear in a different article. Ask your lawyer and read the market-and-rules section.

§ 8Practicalities

Use a written lease in a form that suits the law, keep proofs of the deposit and rent, and register tax on the rent. How letting agents work explains agents.

§ 9Check

Because the text is changing, ask your lawyer to confirm what applies on the day you sign.

§ 10Notices and records

Give notices in a form that leaves proof, such as a registered letter or another method that the contract allows. Keep a copy of every notice and every reply. A dispute over a date is easier to win when you can show when and how the notice was sent.

Legal note. How the process works in general. It is not legal advice, and it never replaces an independent Spanish lawyer acting for you.