⚖️
Jalil Modir Khazeni
Developer & Founder · jalilkhazeni@gmail.com
Welcome
Your Smart Legal & Property Guide
in Spain
in Spain
Buying property, renting, renewing contracts, taxes, insurance, residency, and housing law in Spain can be complex and time-consuming. This platform brings together the most important legal and practical information immigrants and expats need, in clear, up-to-date, actionable language — so you can make decisions with confidence and avoid costly mistakes.
✓ LAU & Ley de Vivienda 2023
✓ Updated through 2026
✓ Built for immigrants & expats
Rental Law
LAU, contract length, deposit, automatic renewal
← Read more
New Laws 2025
IRAV, Ley de Vivienda, tax benefits
← Important, read this
Buying Property
Purchase process, ITP, notary, land registry
← Read more
Tenant Rights
Legal protections, repairs, unlawful eviction
← Read more
Landlord Rights
Guarantees, rent increases, tax benefits
← Read more
Stressed Market Zones
Zonas Tensionadas — where is rent capped?
← Read more
Contract Guide
Do's and don'ts + a full sample contract
← Read more
Property Insurance
Policy types, coverage, prices, and trusted providers 2026
← Read more
Landlord Taxes
IBI, IRPF, deductible expenses and legal deadlines
← Read more
Security Systems
Alarms, cameras, and trusted providers in Spain
← Read more
Illegal Occupation
Okupa — landlord rights, the new 2025 law, and the fast-track eviction process
← Read more
Mortgage Guide
Trusted banks, loan terms, paperwork and 2026 rates
← Read more
Calculators
Property purchase, IRAV, mortgage, checklist
← Calculate
FAQ
20+ common questions, answered
← Find answers
Rental Law in Spain
Based on the LAU (Ley de Arrendamientos Urbanos) and the Ley de Vivienda 12/2023 reforms — a complete guide for immigrants and expats
Contract Length
Minimum 5 years — if the landlord is a private individual. Even if the contract is written for 1 year, the tenant has the legal right to stay up to 5 years, and the landlord cannot evict them.
Minimum 7 years — if the landlord is a company or legal entity (empresa). This protection is greater because companies are assumed to have more negotiating power.
Important note for immigrants and expats: The length written in the contract doesn't matter. Even if the landlord writes a 1- or 2-year contract, you still have the legal right to stay up to 5 years, and the contract renews automatically each year.
Exception: If the landlord needs the property for their own personal use or for a first-degree relative (child, parent, spouse), they can terminate the contract after the first year with 2 months' written notice. However, if no one moves in within 3 months of the tenant leaving, you have the right to return or to compensation.
Types of Rental Contracts
Residential Lease — Arrendamiento de Vivienda
Offers the strongest legal protection. Requirement: the property must be your primary residence (your empadronamiento must be there). Automatic renewal up to 5 years, rent increase limits, and protection against unlawful eviction all apply to this type.
Offers the strongest legal protection. Requirement: the property must be your primary residence (your empadronamiento must be there). Automatic renewal up to 5 years, rent increase limits, and protection against unlawful eviction all apply to this type.
Seasonal Lease — Contrato de Temporada
For temporary stays — such as a study period, a temporary work assignment, or summer. This type of contract doesn't carry the 5-year LAU protection and ends when the term expires.
For temporary stays — such as a study period, a temporary work assignment, or summer. This type of contract doesn't carry the 5-year LAU protection and ends when the term expires.
Room Rental — Alquiler de Habitación
Renting a room in an apartment where the landlord also lives is not governed by LAU and is freely negotiated between the parties. If the landlord doesn't live there, LAU rules apply.
Renting a room in an apartment where the landlord also lives is not governed by LAU and is freely negotiated between the parties. If the landlord doesn't live there, LAU rules apply.
Common pitfall: Many landlords write a seasonal contract (Temporada) to avoid LAU protections — even when they know you intend to stay long-term. If in practice you live there, obtain empadronamiento, and the address on your official documents matches, Spanish courts often reclassify it as a residential (not seasonal) lease, and full LAU protection applies.
Deposit & Guarantees
Fianza — Mandatory Legal Deposit: one month's rent. The landlord is required to deposit this amount with the relevant regional authority — in Alicante that authority is IVAJ. Failure to do so is a legal violation.
Garantía Adicional — Additional Guarantee (Optional): the landlord can ask for up to 2 extra months as a supplementary guarantee. So a maximum of 3 months' rent total can be required. Anything beyond that is illegal.
At move-in: take complete photos and video of every room, wall, floor, fixture, and any existing defect. The date and time of the photos matters. This documentation is your main way of proving any damage was already there beforehand.
Deposit return: the landlord has a maximum of 30 days after the keys are returned to give back the deposit or provide a written reason for withholding it. After 30 days you're entitled to claim daily legal interest as well.
Common mistake: never pay the deposit in cash without a receipt. Always use a bank transfer and write in the payment reference: "Fianza arrendamiento — [property address]".
Annual Rent Increase
Key change since 2025: the IRAV index (Índice de Referencia de Arrendamientos de Vivienda) has replaced CPI. This index is specific to the housing market and is usually lower than the general inflation rate — around 2.2% in 2026.
Legal caps: 2% in 2023 — 3% in 2024 — IRAV from January 2025 onward.
Conditions for applying an increase: the landlord must give written notice of the increase 30 days before the contract's anniversary date. If they fail to notify you, they cannot apply an increase that year.
Which contracts does this law apply to? Only contracts signed after May 26, 2023. Older contracts may be subject to different terms.
How it's calculated: if the monthly rent is €800 and the IRAV for that year is 2.2%, the maximum permitted increase is €17.60 per month. The landlord cannot ask for more than that.
Warning: if the contract uses a vague increase formula ("by agreement" or "in line with the market"), that clause isn't enforceable. The IRAV/CPI rule governs instead.
Automatic Contract Renewal
Key rule — Article 10 LAU: if the landlord doesn't give written notice of termination at least 4 months before the contract ends, it automatically renews for another 3 years. If the tenant doesn't give notice, the contract renews for 1 more year.
Tenant notice to leave: the tenant must give written notice at least 2 months before the end of the contract (or the end of any renewal period). Failure to do so means owing rent for the remaining months until the contract ends.
Early termination by the tenant: after 6 months from the start of the contract, the tenant can terminate it with 30 days' notice. A penalty equivalent to a few months' remaining rent for the current year may be included in the contract.
Important for immigrants and expats: all notices must be in writing and provable. Sending via Burofax (certified mail with proof of content) is the best method. WhatsApp messages or regular email can work, but it's stronger if the other party acknowledges receipt.
Repairs — Who Is Responsible?
Landlord's responsibility (Article 21 LAU): all major repairs necessary for habitability. Examples: a broken boiler (caldera), plumbing or sewage issues, roof or wall damage from moisture, elevator breakdowns, problems with the main electrical system, and failure of appliances listed in the contract (A/C, washing machine, etc. if they came with the property).
Tenant's responsibility: minor repairs from everyday use. Examples: replacing light bulbs, unclogging a toilet or drain (if caused by the tenant's use), replacing remote control batteries, and damage caused by the tenant's own negligence.
The right way to request a repair: send the request in writing (email or a message with delivery confirmation). Keep the date of the request. If the landlord ignores it, you can go through the courts to compel the repair, or fix it yourself and deduct the cost from rent — though this requires legal advice first.
Be careful: if the property had a problem right after move-in (e.g. broken A/C), report it in writing immediately. Delaying notification can cause problems later.
Landlord Access to the Property — Privacy
The landlord has no right to enter the rented property without your explicit permission — even though they own it. Once a contract is signed, the property is legally your "home" and is protected under Spain's constitution.
For repair visits: the landlord must agree on a suitable time, and your presence or that of your representative is required. The landlord cannot enter without coordination and in your absence.
If the landlord enters without permission: this is the criminal offense of "trespassing on a dwelling" (allanamiento de morada). You can file a police report. Neighbors or other evidence can help support your case.
Real Estate Agency Commission
Since January 2024 (Ley de Vivienda 12/2023): in long-term residential lease contracts, agency and brokerage fees are the landlord's responsibility — not the tenant's. The tenant should not pay this fee.
If an agency asks you for a commission: this is illegal. You can refuse to pay. If you already paid, you're entitled to a refund.
Exception: if you directly hired an advisor yourself to search for a property (not an agency chosen by the landlord), you may have a separate contract with that advisor. That situation is different.
Common Mistakes Made by Immigrants and Expats When Renting
❌ Paying the deposit in cash without a receipt: never do this. If the landlord claims they never received the money, you have no proof.
❌ Signing a contract without reading it: even if your Spanish isn't fluent, read the contract with a translation or a friend's help. Key clauses: rent amount, term, deposit, who's responsible for utility bills, and termination conditions.
❌ Not getting empadronamiento: empadronamiento (registering your address with the town hall) is essential for residency renewal, healthcare coverage, and proving your primary residence. Some landlords refuse to allow it, which is against the law.
❌ Not taking photos at move-in: without visual documentation, proving damage existed beforehand is nearly impossible.
❌ Relying on verbal agreements: "the landlord said it's fine" has no legal value. Get any agreement made outside the contract in writing.
❌ Being afraid to assert your rights: some immigrants and expats avoid filing complaints out of concern over their residency status. Spanish housing law applies regardless of residency status — you're protected under the LAU even without residency documents.
Checklist Before Signing a Contract
☐ Verify the landlord's identity — use a Nota Simple from the Registro de la Propiedad to confirm this person is actually the owner.
☐ Property debts — that same Nota Simple shows whether the property has a mortgage (hipoteca) or is under seizure (embargo).
☐ Type of contract — make sure it's a residential lease (vivienda) and not seasonal (temporada) — unless your stay is genuinely temporary.
☐ Exact rent amount and due date — how much is the monthly rent and exactly which day must it be paid.
☐ Who's responsible for utility bills — water, electricity, gas, satellite/cable, internet, and building community fees (comunidad).
☐ Deposit amount and terms — maximum 3 months' rent. What are the return conditions?
☐ Renewal and termination terms — how much notice does each party need to give?
☐ Empadronamiento permission — explicitly ask the landlord to grant permission for address registration, either in the contract or a separate letter.
☐ Photos and video of the entire property — before move-in and after move-out. Document every defect, scratch, and existing damage.
☐ Get a signed copy of the contract — you should have a complete copy with the landlord's signature.
☐ Pay the deposit through a bank — never pay in cash.
Summary of Key Tenant Rights
Right to peaceful occupancy: the landlord cannot harass you, move your belongings, or use psychological pressure to force you to leave the property.
Right to essential repairs: the property must be kept in habitable condition. If the heating breaks down in winter, the landlord must repair it immediately.
Right to empadronamiento: the landlord cannot refuse to allow address registration with the town hall — this is the tenant's legal right.
Right to sublet (in specific cases): in certain circumstances you can sublet part of the property — but you must have explicit permission in the contract.
In case of a dispute: first raise the issue in writing (email or Burofax) with the landlord. If unresolved, you can go to the town hall's consumer affairs office (OMIC) — this service is free. For more serious disputes, get help from a lawyer.
New Laws 2023–2025 Updated
Ley de Vivienda 12/2023 — the most important changes to Spain's housing law and how they directly affect immigrants and expats
The IRAV Index — Replacing CPI Since January 2025
The biggest change for tenants: landlords can no longer raise rent in line with the general inflation rate (CPI). The new IRAV index (Índice de Referencia de Arrendamientos de Vivienda) is specific to the housing market and is usually lower than CPI.
The real numbers: in recent years Spain's CPI sometimes reached 8–10%. IRAV is around 2.2% in 2026. That means your rent increase could go from €80 (with CPI) to €17 (with IRAV) — a very significant difference.
Which contracts are covered: only contracts signed after May 26, 2023. Contracts from before this date may have different terms — check your contract.
Transitional caps: 2% in 2023 — 3% in 2024 — IRAV from January 2025 onward.
Practical tip: if the landlord requests a rent increase above the IRAV rate, you can refuse. There's no need to worry — this is your legal right. Ask them to provide the exact IRAV figure for that month in writing.
Agency Commission — Fully the Landlord's Responsibility Since 2023
New law: in all long-term residential lease contracts, brokerage and agency commission fees are entirely the landlord's responsibility. The tenant owes nothing to the agency.
How much you save: the typical agency commission in Spain is one month's rent — for an €800/month apartment, that's a savings of €800 plus IVA.
Market reality: many agencies, especially in cities like Barcelona and Madrid, still try to charge this fee to tenants — sometimes under labels like "management fee" or "contract fee." This is illegal.
If an agency asks you for a commission: you can refuse to pay. If you already paid, you're entitled to a full refund. You can file a complaint with OMIC (the town hall's consumer affairs office) — this service is free.
Exception: if you personally hired an independent advisor to search for a property (not an agency chosen by the landlord), you may have a separate contract, which is a different situation.
Landlord Tax Benefits — Since January 2024
Why this matters for tenants: these benefits are designed to encourage landlords toward formal, long-term rentals. If your landlord takes advantage of these benefits, they have more incentive to offer you a stable lease.
50% IRPF tax reduction — for any landlord who rents out their property as someone's primary residence. This is the base rate.
60% reduction — if the landlord carried out a major renovation (obras de rehabilitación) on the property in the two years before the contract.
70% reduction — if the landlord rents the property to a young tenant under 35, or enrolls the property in social housing programs.
90% reduction — only in Zonas Tensionadas (stressed market zones), provided the new rent is at least 5% lower than the previous rent.
Basic requirement for all these benefits: the contract must be formal and registered. A landlord renting without a formal contract gets none of these benefits — and is exposed to tax penalties.
Protection for Vulnerable Households — Eviction Suspension
Who qualifies: households in a situation of economic or social vulnerability — including families with children, people with disabilities, and those whose income falls below a specified threshold.
How to get this protection: you must apply through the town hall's Servicios Sociales (social services). They review your situation and issue a certification. With this certification, a court eviction order is temporarily suspended.
Length of suspension: suspension periods are usually 3 to 6 months and can be renewed. This gives the government time to find another housing solution.
Important: this protection is not automatic. You must actively apply for it. If you receive an eviction order (desahucio), contact Servicios Sociales immediately — delay may cause you to lose this right.
Large Landlord (Gran Tenedor) — Why It Matters to Tenants
Definition: a landlord who owns 5 or more properties in a stressed market zone (Zona Tensionada), or 10 or more properties across all of Spain, is classified as a "large landlord."
Additional obligations for large landlords: in stressed zones, a large landlord must contact Servicios Sociales before starting eviction proceedings (desahucio), and mandatory mediation may apply. This gives the tenant more time.
How to find out if your landlord is a Gran Tenedor: you can check with the Registro de la Propiedad or get help from a lawyer. In legal disputes, the opposing party's lawyer is required to disclose this information.
Penalty for Vacant Properties — A Market Signal
The law: a property left vacant for more than 2 years is subject to an increased IBI tax — up to 150% above the normal rate.
Who decides this: town halls are responsible for applying this penalty. The exact amount varies by municipality — some cities have fully implemented it, while others are still in the rollout phase.
The goal: to encourage landlords to rent out properties instead of leaving them vacant. In markets like Alicante where housing pressure is high, this law can help increase rental supply.
Summary — What These Laws Mean for Immigrants and Expats
✅ Rent increase control: with IRAV, landlords can't raise rent beyond the permitted limit each year.
✅ Lower move-in costs: agency commission is no longer your responsibility — your move-in costs for a new place can be lower.
✅ Protection during a crisis: if you run into financial hardship, Servicios Sociales can support you and delay eviction.
✅ More formal contracts: landlord tax benefits give more incentive for formally registered contracts — which also works in your favor.
Note: some of these laws are still in the rollout phase or depend on the specific region. Before making any important decision, get advice from a lawyer or a consumer affairs organization (OMIC).
Guide to Buying Property in Spain
From search to final registration — a step-by-step guide for international buyers and investors
Can Foreigners Buy Property in Spain?
Yes — with no restrictions. Neither residency nor EU citizenship is required. Citizens of any country can buy property. The only essential requirement is having an NIE.
A common challenge for buyers from sanctioned countries: international money transfers can be difficult due to sanctions affecting certain nationalities. Most affected buyers living in Europe use their European bank account instead. For large amounts, Spanish banks will ask you for proof of the source of funds (origen de fondos).
Required Documents Before You Start
NIE (Número de Identidad de Extranjero) — absolutely essential. Without an NIE, no transaction, no tax payment, and no registration is possible. You can obtain an NIE from a Spanish consulate in your home country or from a foreigners' police office (Comisaría) in Spain.
A Spanish bank account — for transferring the purchase funds, paying taxes, and covering notary and registration fees. Banks like Sabadell, CaixaBank, and Santander open accounts for foreigners.
A valid passport — you must carry this through every stage of the process.
Proof of the source of funds — the bank or notary may ask you to prove where the money came from. Bank statements, the sale contract from a previous property, or income documentation are usually sufficient.
For a mortgage: in addition to the above, you'll also need employment documents, 2 years of tax returns, and a credit report (CIRBE). Banks typically lend up to 70% of the property's value.
Purchase Steps — Step by Step
Step 1 — Initial property due diligence: before any decision: check the building's condition, ask about comunidad (building community) fees, check for outstanding comunidad debts (separately from the Nota Simple), and check construction permits. A property built without a permit can create serious legal problems.
Step 2 — Nota Simple from the Registro de la Propiedad: this official document shows who the real owner is, whether the property has a mortgage (hipoteca), whether it's under seizure (embargo), and the property's exact physical details. It can be obtained online from registradores.org for around €10. Never buy without a Nota Simple.
Step 3 — Arras contract (pre-contract): typically 10% of the purchase price is paid. This contract is binding: if the buyer backs out, they lose this amount. If the seller backs out, they must return double the amount. The Arras period is usually 1 to 3 months to complete the banking and legal process.
Step 4 — Escritura Pública before a notary: signing the official deed of transfer of ownership. The notary verifies both parties' identity, checks for outstanding debts, and confirms the funds. The final payment is made at this same meeting — usually via a guaranteed bank check (cheque bancario).
Step 5 — Paying taxes: the purchase tax must be paid within 30 days of signing the Escritura. Late payment incurs a penalty.
Step 6 — Registering ownership: after the tax is paid, the deed is sent to the Registro de la Propiedad. Full ownership cannot be proven until official registration is complete. This step takes 1 to 3 months.
Step 7 — Transferring utilities: transfer electricity, water, gas, and phone into your name. Notify the comunidad of the change of ownership. Also transfer IBI (property tax) into your name.
Taxes & Costs of Buying Property
Resale property — ITP (Impuesto de Transmisiones Patrimoniales): in Alicante (Valencia region) the rate is 10%. In other regions: Catalonia 10%, Madrid 6%, Andalusia 7%, the Canary Islands 6.5%.
New-build property (from a developer) — IVA + AJD: IVA: 10% (for residential) or 21% (for land or commercial). AJD (official documents tax): 0.5 to 1.5% depending on the region.
Notary fees: typically 0.5 to 1% of the property price — between €500 and €2,000 for most transactions.
Land registry fees: a few hundred euros, depending on the property's value.
Lawyer fees (optional but recommended): typically 1% of the property price. For foreign buyers facing language and legal risks, using a lawyer is highly recommended.
Overall calculation: for a €200,000 property in Alicante, additional costs come to roughly: ITP €20,000 + notary €1,200 + registration €600 + lawyer €2,000 = around €24,000 (12%) on top of the property price.
Mortgages (Hipoteca) for Foreigners
Is it possible: yes, many Spanish banks lend to foreigners — even those without permanent residency.
Typical for non-resident foreigners: banks usually lend up to 60 to 70% of the property's value (compared to 80% for residents).
Rates in 2026: fixed-rate mortgages (tipo fijo) are typically 3 to 4% annually. Variable-rate mortgages (tipo variable) are tied to the Euribor.
Documents required for a mortgage: NIE, passport, the last 3 months of payslips or 2 years of tax returns, 6 months of bank statements, and the Nota Simple for the property in question.
Additional mortgage costs: property valuation (tasación) around €300 to €500, mandatory fire insurance, and sometimes life insurance recommended by the bank (not mandatory).
Common Mistakes Immigrants and Expats Make When Buying Property
❌ Buying without a Nota Simple: the most common and most costly mistake. If a property has a heavy mortgage or tax debt, all of that debt transfers to the new buyer.
❌ Not budgeting for additional costs: many buyers set a budget exactly equal to the property price and overlook the extra 12–15% in costs.
❌ Signing the Arras contract without a lawyer: the Arras contract is binding. Read its clauses fully — especially the withdrawal terms and deadlines.
❌ Relying on the seller's verbal promises: any commitment the seller makes — repairs, items left behind, handover deadlines — should be in the written contract.
❌ Not checking comunidad debts: outstanding building fees (unpaid charges) transfer to the new buyer. Get a letter from the building's management board confirming "no outstanding debt."
❌ Forgetting to check construction permits: some properties were built without a permit or in violation of regulations. This is more common in Spain's coastal areas. An architect or lawyer can check the property's urbanístico (zoning/planning) status.
Golden Visa — Status in 2026
Officially discontinued since 2024: the Spanish government ended the residency-through-property-purchase program (Golden Visa). Buying property is still unrestricted and entirely open, but it no longer leads to residency.
Residency alternatives: the digital nomad visa (for remote work with income from outside Spain), a non-property investment visa (company, bonds), a student visa, or standard work-based residency.
Property Purchase Checklist
☐ NIE obtained — before taking any other step.
☐ Spanish bank account — with sufficient funds for the Arras deposit and additional costs.
☐ Nota Simple — ownership, debts, mortgage, and registration status checked.
☐ Comunidad debt — a "no outstanding debt" letter from the building's management board.
☐ Construction permit — the property's urbanístico status checked.
☐ IBI paid — get the current year's property tax receipt from the seller.
☐ Arras contract — read and signed with clear deadlines.
☐ Escritura before a notary — signed.
☐ ITP or IVA tax — paid within 30 days.
☐ Registration with the Registro de la Propiedad — completed.
☐ Utility transfers — electricity, water, gas, and IBI in the buyer's name.
Frequently Asked Questions
Can a property be bought in two people's names? Yes — joint ownership (copropiedad) is fully legal. The deed specifies what percentage each person owns.
Is using a lawyer mandatory? No, but it's strongly recommended for foreign buyers — especially if your Spanish isn't fluent. A lawyer can interpret the Nota Simple, review contracts, and guide you through the whole process.
How long does it take? From Arras to Escritura is typically 1 to 3 months. Final registration with the Registro takes another 1 to 3 months.
Can you buy without being physically present? Yes — with an official power of attorney (poder notarial) you can authorize a representative to complete the transaction on your behalf.
Tenant Rights in Spain
The most important legal protections every tenant — especially immigrants and expats — should know
Right to Stay — 5 Years Minimum
The tenant's most fundamental right: even if the contract is written for 1 year, the tenant has the right to stay up to 5 years (with a private individual landlord) or 7 years (with a company or legal entity). This is a legal right and the landlord cannot override it.
How it works: each year on the contract's anniversary date, if neither party terminates it, the contract renews for another year — up to the 5-year cap. After that, if the landlord doesn't give written notice 4 months in advance, it renews for another 3 years.
An important exception: if the landlord needs the property for their own personal use or for a first-degree relative (parent, child, spouse), they can terminate the contract after the first year with 2 months' notice. If this turns out to be a pretext, you have the right to return to the property or to compensation.
Warning for immigrants and expats: some landlords try to bypass this protection by labeling the contract "seasonal" (Temporada). If the property is your primary residence and your empadronamiento is registered there, courts often reclassify it as a residential lease.
Right to a Written Contract & Transparency
Right to a signed copy: the tenant has the right to a complete copy of the contract with the landlord's signature. The landlord cannot refuse this.
Contract language: Spanish law doesn't require a translation of the contract, but you can ask the landlord to provide an informal one. Whatever contract you sign in Spanish is the legally valid version — even if you didn't fully understand its content. So read it or get help before signing.
Any agreement outside the contract: if the landlord says something like "I'll fix it later" or "I'm charging less rent for now," get it in writing — email, a confirmed message, or an added clause in the contract. Verbal agreements carry little legal weight.
Right to Peaceful Occupancy & Privacy
The landlord cannot enter without permission: even for repairs or inspections, the landlord must coordinate the time with you and enter in your presence or that of your representative. Entering without permission is "trespassing on a dwelling" (allanamiento de morada) and is a criminal offense.
The landlord cannot harass you: constant calls, threats of eviction without legal grounds, repeated entry without permission, or cutting off utilities to "convince" you to leave — all of these are offenses, known collectively as acoso inmobiliario (housing harassment).
If the landlord pressures you: document everything — dates, times, content of calls. If it continues, go to the police or a lawyer. Town halls can also help in this area.
Repairs — Exact Responsibility of Each Party
Landlord's responsibility (Article 21 LAU) — major repairs: a broken boiler (caldera), main plumbing or sewage issues, roof or wall damage from moisture and leaks, failure of the main electrical system, repair or replacement of appliances listed in the contract as part of the property (A/C, washing machine, etc.).
Tenant's responsibility — minor day-to-day repairs: replacing light bulbs, unclogging a drain or toilet (if caused by the tenant's own use), fixing a door handle, replacing remote control batteries, and any damage directly caused by the tenant's negligence.
How to request a repair: send the request in writing (email is preferred). Keep the date and content. If the landlord doesn't act within a few days, send a written reminder. If they still don't act, you can go through the courts to compel the repair — or in urgent cases (like heating in winter), fix it yourself and deduct the cost from rent, ideally after consulting a lawyer.
A defect found at move-in: if something was already broken, notify the landlord immediately and in writing. Delaying notification may shift responsibility onto you.
Unlawful Eviction — Red Lines
A criminal offense: the landlord has no right, in order to force you out, to cut off water or electricity, change the locks, put your belongings outside, block your entry, or take any other action that denies you access to the property. All of these constitute "self-help repossession" (autotutela ilícita) or housing harassment.
If the landlord changes the locks: call the police (091) immediately. File a criminal complaint (denuncia). Courts usually issue a quick order to restore your access. Neighbors or any witness who knows you live at that address can help.
The only legal way to evict: the landlord must file a court case (juicio de desahucio). You have the right to defend yourself in court. The legal process takes several months, and during this time the tenant retains the right to occupy the property.
For immigrants and expats: some landlords exploit unfamiliarity with the law. "You have to leave tomorrow" or "the contract is over" carries no weight at all if it has no legal basis. Take your right to stay up to 5 years seriously.
Deposit Return — Your Exact Rights
Legal deadline: the landlord has 30 days from the date you return the keys to give back the deposit. After 30 days, in addition to the deposit itself, you're entitled to claim daily legal interest as well.
If the landlord deducts something: they must provide a written reason with evidence (a repair invoice, photos of damage). A deduction without evidence is illegal. If you disagree, you can dispute it.
Your strongest weapon: the photos and videos you took at move-in. If the property's condition at move-in and move-out is documented, proving damage existed beforehand is straightforward.
If the landlord never returns it at all: 1. Send a Burofax (official certified mail) with a 10-day deadline. 2. If there's no response, file a small claims case (Juicio Verbal) in court — for amounts under €2,000 you don't need a lawyer. 3. You can also claim legal interest starting from day 30.
When the Property Is Sold — Your Rights Are Protected
A property sale does not lead to your eviction. Under Article 14 LAU, the new buyer of the property is required to honor your lease until the end of its legal term (5 years). The new landlord simply steps into the old landlord's place — under the same contract terms.
Right of first refusal (Derecho de Tanteo): if the landlord wants to sell the property, they must first notify you and offer it to you at the same price offered to another buyer. You have 30 days to decide.
If it was sold without notice: you have the right to void the sale (Derecho de Retracto) — within 30 days of learning about the sale.
Discrimination in Rentals — Your Legal Right
Discrimination is prohibited: rejecting a tenant based on nationality, race, religion, gender, family status, or disability is prohibited in Spain and can be legally challenged.
Practical reality: proving discrimination is difficult because the landlord will usually cite another reason. But if you have solid evidence (such as an email explicitly referencing nationality or religion), you can file a complaint with the consumer affairs office (OMIC) or in court.
Practical advice: if you face discrimination while searching for housing, keep documentation — screenshots of messages, emails. This evidence is needed for any potential action.
Common Mistakes Tenants Make
❌ Paying in cash without a receipt: always pay through the bank. Write in the transfer description: "Alquiler [month] — [address]".
❌ Moving out without a handover record: at key handover, review the property's condition with the landlord and put any deposit agreement in writing. Without this documentation, proving anything later becomes difficult.
❌ Not reporting pre-existing damage: report any damage that was already there immediately and in writing. Staying silent may shift the blame onto you later.
❌ Giving in to pressure to leave early: "the contract is over, you have to leave" has no basis when you legally have 5 years of protection. Make sure you understand your rights before making any decision.
❌ Being afraid to take legal action: tenant rights in Spain are independent of residency status. Even without official residency, LAU protections apply. Filing a police report or going to court has nothing to do with your immigration status.
Smart Tenant Checklist
☐ Signed copy of the contract — in hand and scanned.
☐ Bank receipt for the deposit — paid from a bank account with the reference "Fianza".
☐ Full photos and video at move-in — of every room, wall, floor, fixture, and any existing defect.
☐ All rent payment receipts — kept (bank statement history is sufficient).
☐ Damage reports made in writing — always use email or a message with confirmation.
☐ Empadronamiento — address registered with the town hall.
☐ Contract end date — noted, and I know when I need to give notice to leave.
☐ Handover record — review the property's condition with the landlord at move-out.
Frequently Asked Questions
The landlord says "you can't register empadronamiento here." Is that true? No. Registering your address with the town hall is the tenant's legal right. The landlord cannot prevent it. If they obstruct it, you can go directly to the town hall with your rental documents.
My contract's first term ended but I want to stay — what should I do? If the contract's first year ended and neither party terminated it, it renews automatically. There's no need to sign anything again. Just continue paying rent.
The landlord says "you'll regret it if you don't leave." Should I be worried? No — this is usually an empty threat. The landlord can't do anything without a court order. If the threats continue, document them and consult a lawyer.
Can I rent out a room in the apartment to someone else? Only if the contract explicitly allows it or the landlord has given written consent. Without the landlord's permission, subletting violates the contract.
Landlord Rights in Spain
What every landlord should know about renting property, guarantees, taxes, and legal procedures
Financial Security — Deposit & Additional Guarantees
Fianza — Mandatory Legal Deposit: one month's rent, which the landlord is required to deposit with the relevant regional authority (in Alicante: IVAJ). This amount covers potential property damage or unpaid debts.
Garantía Adicional — Supplementary Guarantee (Optional): you can request up to 2 months' rent as an additional guarantee. So the maximum total is 3 months' rent. Anything beyond that is illegal and may call the contract into question.
Guarantor or bank guarantee (Aval): you can write into the contract that the tenant must provide a guarantor or a bank guarantee letter — especially if the tenant's credit history is insufficient. This counts as an additional guarantee and falls within the 2-month cap.
Practical advice: always receive the deposit via bank transfer. Cash without a receipt creates problems for both you and the tenant. Register the deposit promptly — delays incur a penalty.
Rental insurance (Seguro de Alquiler): offered by companies like Mapfre, Allianz, or Mutua de Propietarios, this insurance provides important coverage: unpaid rent (up to 12 months), court legal costs, and property damage. The annual cost is typically 2 to 4% of annual rent. For landlords worried about a new tenant, this insurance offers real peace of mind.
Tenant Screening — Before Signing the Contract
Identity documents: a copy of their passport or DNI/NIE. For foreign tenants, checking valid residency status can be useful — though residency status itself shouldn't be a reason to reject an application (discrimination is prohibited).
Financial capacity: it's common for landlords to ask for the last 3 payslips, an employment contract, or a tax return. General rule: rent shouldn't exceed 35% of the tenant's monthly income.
CIRBE and RAI checks: you can ask the tenant to provide a debtor report (RAI or CIRBE). These services show whether the tenant has a history of unpaid debts.
Be careful: rejecting an applicant based on nationality, race, or religion is discrimination and can be legally challenged. Rejection must be based on objective financial criteria.
Right to Receive Rent — And What to Do If It's Not Paid
Payment deadline: rent should typically be paid within the first 5 days of each month. This date should be specified in the contract.
Payment receipt: the tenant has the right to request a receipt. If you receive payment via bank transfer, your bank statement itself serves as the receipt. Document cash payments with a receipt.
If the tenant doesn't pay: 1. First send a written reminder (email or message). 2. If there's no response, send a Burofax (official, provable mail). 3. If payment still isn't made within 10 days, you can file a court case (Juicio de Desahucio por Impago).
Court process for non-payment: once the case is filed, the tenant has 10 days to either pay (which closes the case — enervación) or be evicted. This "save" (enervación) is only available once during the life of the contract.
Never take matters into your own hands: cutting off water or electricity, changing the locks, or removing the tenant's belongings — even if they haven't paid for months — is a criminal offense and puts the landlord in a worse legal position.
End of Contract — Mandatory Deadlines
During the first 5 years (the protected period): the landlord generally cannot terminate the contract early — except for non-payment, breach of contract, or personal need for the property (with 2 months' notice).
End of the 5-year period: the landlord must give written notice at least 4 months before the contract ends that they don't intend to renew. Failing to do so means the contract automatically renews for another 3 years.
During renewal periods (after 5 years): each renewal period is one year. The landlord must give notice 4 months before each period ends. The tenant must give notice 2 months in advance.
Key point: all notices must be in writing and provable. Sending via Burofax is the best method since both the sending date and content are provable. Email is also acceptable if the other party confirms receipt.
A common mistake: many landlords mistakenly think a "1-year contract" ends after one year. This isn't true — the law protects the tenant for up to 5 years. To reclaim the property after 5 years, you must give notice 4 months in advance.
Property Maintenance — Rights & Obligations
The landlord is obligated to: carry out all major repairs needed to keep the property habitable — even if the contract doesn't mention it. This is a legal obligation, not optional.
The landlord has the right to: expect the tenant to use the property reasonably. If the tenant causes damage beyond normal wear and tear, the landlord can claim compensation — with documentation and invoices.
Visiting the property: the landlord must coordinate the time with the tenant. Best practice: a written message proposing a date and time. Entering without coordination is prohibited.
Recommendation: at move-in, prepare a written record with a detailed list of the condition of everything (with photos), signed by both parties. This document becomes the main reference for assessing damage when the tenant moves out.
Landlord Tax Benefits — Since 2024
A key change from the 2023 housing law: since January 2024, new tax benefits apply to landlords who rent out residential property.
50% IRPF reduction — for any standard residential lease with a formal contract. This is the base rate for everyone.
60% reduction — if you carried out a major renovation (obras de rehabilitación) on the property in the two years before the contract.
70% reduction — if the tenant is young, under 35, or if you place the property into social housing programs (Administración Pública).
90% reduction — only in Zonas Tensionadas (officially designated stressed market zones), provided the rent is at least 5% lower than the previous rent.
Basic requirement for all these benefits: the contract must be formal, written, and registered. Renting without a contract, or "off the books," not only forfeits these benefits, but exposes the landlord to tax penalties (both before and after the rental period). If the tenant files a complaint, the landlord will be in a much weaker position.
Deductible expenses: beyond these reductions, expenses such as repairs, property insurance, IBI, agency commission (which has been the landlord's responsibility since 2023), and mortgage interest are also deductible from rental income.
Vacant Property — Costs & Alternatives
IBI penalty: if a residential property remains vacant for more than 2 years, the town hall can increase IBI (the annual property tax) by up to 150%. This penalty varies by municipality — some have fully implemented it, others are still in the rollout phase.
Alternative options for landlords: short-term tourist rental (with a permit — Vivienda Turística), transferring the property to a social housing program with a guaranteed fixed rental income, or selling the property.
Tourist rentals in Alicante: require an official permit from the Conselleria de Turisme. Operating without a permit carries a heavy fine. Tourist rental income is also subject to tax.
Common Mistakes Landlords Make
❌ Renting without a formal contract: the riskiest thing you can do. Without a contract: no tax benefits, no legal protection in case of non-payment, and no legal tool to remove a tenant.
❌ Not registering the deposit: the landlord is required to deposit it with IVAJ (or the equivalent regional authority). Failing to register it carries a fine and can be used against the landlord in court.
❌ Not taking photos at move-in: without visual documentation of the property's initial condition, proving tenant-caused damage in court is nearly impossible.
❌ Missing the 4-month deadline: the most common landlord mistake. If you don't give notice 4 months before the contract ends, the tenant has the right to stay another 3 years.
❌ Taking matters into your own hands for eviction: cutting water, electricity, or changing locks — even in case of non-payment — is a criminal offense. It puts the landlord in a very weak legal position.
❌ Not checking the tenant's financial capacity: a tenant who can't pay from the start creates the entire legal eviction process (which takes months). Screening financial documents up front is far less costly.
Professional Landlord Checklist
☐ Formal written contract — the "Arrendamiento de Vivienda" type, with all legally required clauses.
☐ Tenant's financial documents checked — payslips, employment contract, or tax return.
☐ Deposit received via bank — and registered promptly with IVAJ.
☐ Move-in record with photos — signed by both parties.
☐ Key dates noted — end of year one, end of the 5-year period, and notice deadlines.
☐ All payments recorded — through the bank, with records kept.
☐ Rental insurance considered — at least the available options compared.
☐ All important correspondence in writing — email or Burofax, not by phone.
☐ Tax advisor — to apply the IRPF benefits in the annual tax return.
Frequently Asked Questions
Can I write a 1-year contract and then remove the tenant after a year? No. Even with a 1-year contract, the tenant has the right to stay up to 5 years. The end of the written term doesn't mean the end of legal protection.
If the tenant damaged the property, how do I keep the deposit? Keep the deposit and send the tenant a written letter with repair invoices within 30 days. If the deposit isn't enough to cover it, you can file a claim for the difference.
Can I sell the property during the contract term? Yes, but the new buyer must honor the lease until the end of its legal term. You must first offer the tenant the right of first refusal (Tanteo).
Does short-term tourist rental (Airbnb) require a permit? Yes — in Spain, tourist rental without an official permit is prohibited and carries a heavy fine. In Alicante you must obtain a permit from the Conselleria de Turisme.
Stressed Housing Market Zones
Zonas Tensionadas — definition, the real situation across Spain, and the practical impact on tenants and landlords
What Is a Zona Tensionada?
Legal definition (Ley de Vivienda 12/2023): an area meeting at least one of these two conditions: 1) rent or mortgage costs exceed 30% of average household income in that area. 2) rental or purchase prices have grown more than 3 percentage points above the province's inflation rate over the past 5 years.
Who designates it: regional governments (Comunidades Autónomas) — not the central government. This means each autonomous region must decide for itself whether to apply this designation. Duration of designation: 3 years, renewable.
Key point: a city being economically "stressed" doesn't necessarily mean it has the official Zona Tensionada designation. The official designation is a political decision that requires the regional government's will to act.
Special Protections in Designated Zones
Extra renewal for tenants: beyond the usual 5 years, the tenant can request one additional 1-year (extraordinary) renewal. The landlord is required to grant it — unless they have a documented need for the property.
Rent cap on new contracts: in these zones, the rent for a new contract cannot exceed the rent of the previous contract for that same property — even if the property has gone unrented for years. This law prevents a sudden rent increase when tenants change.
For large landlords (Gran Tenedor): in these zones, landlords who own 5 or more properties face stricter restrictions — including mandatory mediation with Servicios Sociales before eviction.
The 90% tax benefit for landlords: a landlord who sets their rent in a Zona Tensionada at least 5% below the previous contract benefits from a 90% IRPF reduction. This is the largest tax incentive available.
The Real Situation — Where Has It Been Designated?
Catalonia (Barcelona and surrounding area): the most advanced region in implementation. Barcelona and 140 surrounding towns have officially been designated Zonas Tensionadas. The rent cap applies to new contracts, and real price control exists.
Madrid: the Madrid regional government has not designated any zone so far — even though housing prices in some neighborhoods are among the highest in Spain. This is a political decision made by the regional government.
Valencia and Alicante: the Valencia regional government (Generalitat Valenciana) has not officially designated any Zona Tensionada so far — even though Alicante, Valencia, and Málaga have some of the highest rent increase rates in Spain. Tenants in Alicante don't benefit from these special protections.
Andalusia (Málaga, Seville, Granada): the Andalusian regional government also hasn't taken action so far — Málaga, with one of the highest housing pressure rates in Europe, remains outside these protections.
Basque Country (Euskadi): some areas are under review. The regional government has taken a more cautious approach.
Other regions: Navarre, Cantabria, and some other regions are in various stages of review or implementation. The situation continues to evolve.
How Do I Know If a Property Is in One of These Zones?
Quick method: ask a real estate agent or lawyer. They should know the status.
Official method: check the regional government's (Comunidad Autónoma) website. In Catalonia, the Habitatge.cat site has complete information. In Valencia, check habitatge.gva.es.
Contract registration: if a property is in a Zona Tensionada, the rental contract must explicitly state that the property is in this zone and what the previous rent for that property was.
The status can change: regional governments can designate new zones or change the current status. Check the latest status before any important rental decision.
Practical Impact — What Difference Does This Make for You?
If you're in a Zona Tensionada (like Barcelona): a new contract's rent cannot exceed the previous rent for that same property. You're entitled to one extra year of renewal. You have stronger protection against rent increases.
If you're in an area without this designation (like Alicante): the basic LAU rules fully apply — 5 years of protection, IRAV for rent increases, agency commission paid by the landlord — but there's no rent cap on new contracts. The landlord can adjust the rent to market rate when changing tenants.
Summary for immigrants and expats in Alicante: there's no official Zona Tensionada designation, but all the basic LAU rights (5 years, IRAV, landlord-paid commission, privacy, and more) are fully in effect. These rights are independent of Zona Tensionada status and apply to every tenant across Spain.
Frequently Asked Questions
Are all Spanish cities Zonas Tensionadas? No. Only areas officially designated by a regional government fall under this status. In most of Spain — including Madrid, Alicante, and Andalusia — no zone has been designated yet.
If my city isn't a Zona Tensionada, do I have no protection at all? That's a common misconception. The core LAU protections (5 years of occupancy, IRAV, prohibition on unlawful eviction, capped deposits, landlord-paid commission) apply across all of Spain. Zona Tensionada status only adds extra layers of protection.
Could Alicante's status change? Yes. Political pressure to designate stressed zones in Valencia is increasing. Local elections and a change in the regional government could change this.
If a landlord claims a property isn't in a Zona Tensionada so the rent cap doesn't apply, how do I verify it? Check directly on the regional government's website. This information is public, and the landlord cannot hide it.
Rental Contract Guide for Spain
Part 1: Do's and don'ts — Part 2: Key contract clauses — Part 3: Sample contract
✅ Do's — Before Signing
✅ Check the contract type: if the property is your primary residence, it should say "Arrendamiento de Vivienda." This phrase is usually stated at the top of the contract or in the first clause. If it says "Temporada" or "Arrendamiento de Uso Distinto" — ask why.
✅ Verify the real landlord's identity: the landlord's DNI or NIE on the contract should match their ID card. If a representative is signing, they must have an official power of attorney (poder notarial).
✅ Fully document the property's condition: before moving in, take photos and video of every room, wall, floor, kitchen, bathroom, and any existing defect. The timestamp on the photos matters. This documentation plays a decisive role in getting your deposit back.
✅ Specify who's responsible for each utility bill: water, electricity, gas, internet, building fees (comunidad), and IBI — each should clearly state who's responsible. Ambiguity here is a common source of disputes.
✅ Get a bank receipt for the deposit: pay the deposit via bank transfer with the reference "Fianza arrendamiento — [address]." Keep the bank receipt. Also ask for confirmation that the deposit was registered with the relevant authority (such as IVAJ in Alicante).
✅ Get a complete signed copy: every page should be signed. Keep a scanned PDF copy as well — save it in email or cloud storage so it's always accessible.
✅ Get empadronamiento permission in the contract or a separate letter: this is your legal right, but having the landlord's written confirmation makes the process much easier.
✅ Read the termination terms fully: how much notice does the tenant need to give to leave? Is there a penalty for early termination? What are the landlord's termination conditions?
🚫 Don'ts — Red Lines
🚫 Don't rent without a written contract: a verbal agreement has no legal backing. Without a contract, neither the landlord gets tax benefits nor the tenant gets LAU protection.
🚫 Don't pay a deposit over 3 months' rent: one month's legal Fianza plus a maximum of two additional months as a guarantee. Anything more is illegal. A landlord asking for more is either mistaken or trying to take advantage of you.
🚫 Don't pay an agency commission: in long-term residential contracts, the agency fee is the landlord's responsibility (since 2023). If an agency asks you for a commission, you have the right to refuse.
🚫 Don't sign a seasonal contract for permanent residence: "Temporada" is meant for temporary stays. If you intend to stay long-term but the landlord writes Temporada, this could be a trap. In case of a dispute, you can ask the court to reclassify it as residential.
🚫 Don't sign under time pressure: "you have to decide today or I'll give it to someone else" is a pressure tactic. A rental contract is a multi-year commitment — you have the right to read it and seek advice.
🚫 Don't pay in cash without a receipt: every payment — deposit, rent, agency fee — should go through the bank or come with a written receipt.
🚫 Don't give in to unlawful eviction: cutting off water, electricity, or changing the locks is a criminal offense. Without a court order, no one can force you to leave the property.
Key Clauses — What to Read Carefully in the Contract
Contract type clause: it should explicitly say "Arrendamiento de Vivienda" and reference LAU 29/1994 and Ley 12/2023.
Term clause: the exact start and end date. Renewal clause: it usually says "renewal per Articles 9 and 10 LAU" — this means 5 years of protection followed by a 3-year renewal.
Rent increase clause: it should specify the increase reference. "IRAV" or "índice de referencia" is the correct phrasing. If it says "by agreement" or "based on CPI" — this clause is vague or outdated.
Tenant termination clause: it usually states the tenant can terminate after 6 months with 30 days' notice. A penalty equivalent to the remaining rent for the current year may also be mentioned — this is legal.
Landlord's need for the property clause: some contracts include a "necesidad de vivienda" clause allowing the landlord to reclaim the property after the first year with 2 months' notice. This is legal but must be documented.
Subletting clause: most contracts prohibit subletting unless the landlord gives written permission. Be aware of this.
Tip for immigrants and expats: if your Spanish isn't fluent, read the contract with the help of a Spanish-speaking friend or an advisor. What you sign in Spanish is what gets enforced — the landlord's verbal explanations carry no legal weight.
📋 Checklist Before Signing
☐ Contract type: "Arrendamiento de Vivienda" confirmed
☐ Landlord's identity matched against their ID card
☐ Rent amount and due date specified
☐ Deposit amount (maximum 3 months) specified
☐ Annual increase reference (IRAV) mentioned
☐ Who's responsible for each bill (water, electricity, gas, fees, IBI) specified
☐ Termination terms and notice deadlines read
☐ Empadronamiento permission in the contract or a separate letter
☐ Photos and video of the property's condition taken
☐ Deposit paid via bank transfer
☐ Complete signed copy received and scanned
📄 Sample Contract
Residential Lease Agreement
CONTRATO DE ARRENDAMIENTO DE VIVIENDA — LAU 29/1994 & Ley 12/2023
▌ Landlord
Name: ................ NIE/DNI: ................ Phone: ................
▌ Tenant
Name: ................ NIE/DNI: ................ Phone: ................
▌ Property
Address: ................ Floor: ...... Size: ...... m²
▌ Term
Start: ................ — Right of renewal: 5 years (Article 9) — Automatic renewal: 3 years (Article 10)
▌ Rent
Amount: .......... EUR/month — Annual increase: IRAV index
▌ Deposit
Legal: .......... EUR — Additional: .......... EUR — Returned within 30 days
▌ Expenses
Water: ☐L ☐T — Electricity: ☐L ☐T — Gas: ☐L ☐T — Building fees: ☐L ☐T — IBI: ☐L ☐T
▌ Repairs
Major: Landlord (Article 21) — Minor: Tenant
Landlord
Name & signature
Tenant
Name & signature
Property Insurance in Spain (Seguro del Hogar)
A complete guide to policy types · coverage · prices · trusted providers 2026
Is Property Insurance Mandatory?
For a property with a mortgage (Hipoteca): yes — Spanish law 2/1981 requires landlords with a mortgage to have at least fire insurance. In practice, banks require more comprehensive coverage.
For a property without a mortgage: not legally mandatory, but a simple incident like a water leak reaching the apartment below can cause €5,000 to €20,000 in damage. An annual insurance cost of €150 to €300 against this risk is, in practice, well worth considering.
For tenants: not mandatory, but tenant insurance (Inquilino) covers your personal belongings and your civil liability — something the landlord's insurance doesn't cover.
A note about banks: if a bank gave you a mortgage, they may offer their own insurance. You're not required to accept it. You have the right to get insurance from any other company — it just needs to meet the bank's minimum required coverage. Independent insurance is usually cheaper.
Types of Property Insurance
🏠 Homeowner Insurance (Propietario): the most comprehensive type. Covers the structure (Continente) + contents (Contenido) + civil liability. Suitable for your own home or a property you're renting out.
🔑 Tenant Insurance (Inquilino): covers your personal belongings inside the property — not the structure itself, which belongs to the landlord. Also covers your civil liability. Typically €50 to €150 per year — very affordable.
🏢 Landlord / Rental Property Insurance (Arrendador): for landlords renting out a property. In addition to standard coverage, it includes tenant-caused damage, unpaid rent (up to 12 months), court legal costs, and Okupa (illegal occupation) coverage.
Continente and Contenido — The Most Important Insurance Concept
A common mistake: many people confuse these two with the property's market price. Continente and Contenido have nothing to do with the property's purchase price.
Continente — Value of the structure: the cost to rebuild the property from scratch if completely destroyed — walls, roof, floor, doors, electrical and plumbing systems. This figure is typically €1,000 to €1,500 per square meter — not the market price, which also includes land value. For an 80m² apartment in Alicante, the Continente is typically €80,000 to €120,000.
Contenido — Value of the contents: furniture, appliances, computer, TV, clothing, jewelry, and other personal belongings. You need to estimate this yourself. Underdeclaring it means you receive less in case of damage.
Be careful: if you declare a lower Continente than the real value (e.g., €60,000 against an actual value of €100,000), in case of damage the insurer will only pay 60% of the claim. This is the "underinsurance" rule (infraseguro).
Main Coverage Types — Details
💧 Water Damage (Daños por Agua)
The most common claim. Burst pipes, leaks, damage to a neighbor. Water leaks between units are very common in Spain.
The most common claim. Burst pipes, leaks, damage to a neighbor. Water leaks between units are very common in Spain.
🔥 Fire (Incendio)
Fire, smoke, explosion. Usually the most basic coverage.
Fire, smoke, explosion. Usually the most basic coverage.
🦹 Theft (Robo)
Theft with forced entry, broken locks or doors. Note: the cap on jewelry and cash coverage is usually limited.
Theft with forced entry, broken locks or doors. Note: the cap on jewelry and cash coverage is usually limited.
🌪️ Natural Disasters
Storms, hail, flooding. Some coverage requires participation from the CCS (insurance consortium).
Storms, hail, flooding. Some coverage requires participation from the CCS (insurance consortium).
⚖️ Civil Liability (RC)
If your home causes damage to others. Typically €150,000 to €300,000 coverage.
If your home causes damage to others. Typically €150,000 to €300,000 coverage.
🔧 Emergency Services (Asistencia)
Emergency plumber, electrician, locksmith — usually 24/7.
Emergency plumber, electrician, locksmith — usually 24/7.
🪟 Glass Breakage
Windows, glass doors, ceramics.
Windows, glass doors, ceramics.
⚡ Electrical Damage
Power surges, lightning, electronics damage.
Power surges, lightning, electronics damage.
Special coverage for landlords: unpaid rent (up to 12 months), lawyer fees in a dispute with a tenant, Okupa (illegal occupation) coverage, and intentional tenant damage. If you're renting out a property, request these coverages separately.
2026 Pricing Guide
* Prices are estimates. The exact price depends on size, neighborhood, value of contents, and the insurance company.
Trusted Insurance Companies in Spain
🏆 Mapfre — Spain's largest insurer. Broad coverage, with a network of agents across the country. Suitable for homes and commercial property.
🏆 Mutua Madrileña — one of the best in terms of value for money. Average €255/year for full coverage.
🏆 Caser — specialized coverage, well-suited for high-value properties. Average €275 for full coverage.
🏆 Ocaso — stable, with no sudden rate changes. Solid coverage against fire, theft, and water damage. Average €165.
🏆 Pelayo — the best option for a mid-range budget. Average €151/year.
💡 Tuio — a new digital insurer. Starting from €5/month. Ideal for a small apartment or those just starting out.
Important Tips Before Buying Insurance
📋 Declare the Continente value correctly: the rebuilding cost, not the market price. Underdeclaring it means you'll receive less in case of a claim.
📋 Make sure you have civil liability coverage: RC coverage is, in practice, essential in Spain. A single water leak to a neighbor can cost several thousand euros.
📋 Read the exclusions: most policies don't cover damage caused by "obvious negligence" or pre-existing damage.
📋 Check the emergency services: is it available 24/7? Does it include a plumber and locksmith? This is a service you'll often need in your first year.
📋 For tenants: before buying insurance, ask the landlord whether the property is insured and what's covered. Then decide what supplementary coverage your tenant insurance needs.
⚠️ If the bank offers its own insurance: you're not required to accept it. You have the right to get insurance from any other company — it just needs to meet the bank's minimum required coverage. Independent insurance is usually 20 to 40% cheaper.
Frequently Asked Questions
Does insurance cover damage caused by a tenant? Standard landlord insurance usually covers "accidental" damage, not intentional damage by a tenant. For that coverage, you need specialized Arrendador insurance.
If damage from the unit above reaches our home, whose insurance should pay? First, the civil liability coverage of the unit above. If they don't have insurance or it's insufficient, your "water damage" coverage kicks in — and your insurer can then seek reimbursement from the upstairs neighbor.
Does Okupa insurance exist? Yes — some companies like Mapfre and Caser offer special coverage for legal costs and expenses related to illegal occupation. This coverage is separate and must be explicitly requested.
Should tenants also get insurance? It's not mandatory, but highly recommended. Tenant insurance covers your personal belongings and civil liability — for example, if you forget to turn off a tap and it causes damage to a neighbor.
Annual Landlord Taxes in Spain
IBI · IRPF · Deductible expenses · Legal deadlines 2025–2026
The Main Annual Landlord Taxes
🏛️ IBI (Impuesto sobre Bienes Inmuebles): the most important annual property tax. Collected by the town hall, every property owner must pay it — whether the property is rented, vacant, or your own home. The amount is calculated based on the property's cadastral value (not market price). Typically €300 to €600 a year in Alicante. €150 to €500 in Madrid. €400 to €1,200 in Barcelona.
📊 IRPF (Personal Income Tax): if you rent out the property, the rental income must be declared in your annual tax return (Renta). If the property is vacant and isn't your primary residence, a "deemed income" (imputación de rentas) is calculated — typically 1.1% of the cadastral value.
🏘️ Building Fees (Comunidad de Propietarios): shared maintenance costs — elevator, cleaning, gardening, pool, security. Typically €30 to €200 a month. Be sure to ask about this figure before buying a property — in some luxury buildings it can reach €500 a month.
🗑️ Waste Tax (Tasa de Basuras): the town hall's waste collection charge. Typically €50 to €200 a year. In some municipalities it's collected together with IBI.
Not paying IBI: the town hall can pursue it with penalties and late interest — and in severe cases, place a seizure (embargo) on the property. If you're buying a property, any unpaid IBI transfers to the buyer. Ask the seller for the current year's IBI receipt.
Rental Income Tax — How It's Calculated
Calculation formula:
1. Annual rental income
2. Minus deductible expenses
3. = Net income
4. Apply a 50% to 90% reduction (depending on conditions)
5. = Taxable base subject to IRPF
1. Annual rental income
2. Minus deductible expenses
3. = Net income
4. Apply a 50% to 90% reduction (depending on conditions)
5. = Taxable base subject to IRPF
A practical example: if you earn €15,000 a year in rent and have €4,200 in expenses (IBI, building fees, insurance, repairs), your net income is €10,800. With a 50% reduction, you only pay tax on €5,400. If the tenant is under 35, the reduction becomes 70%, and you pay tax on only €3,240.
IRPF tax rate: it's progressive — starting at 19% for the first €6,000 and increasing from there. The rental tax base is combined with your other income. So if you have a salary or other income, your effective rate may be higher.
Expenses Deductible from Rental Income
✅ Mortgage interest (Hipoteca)
Interest only, not the principal.
Interest only, not the principal.
✅ IBI tax
The full amount is deductible.
The full amount is deductible.
✅ Building fees
Comunidad + shared repairs.
Comunidad + shared repairs.
✅ Property insurance
Any type of insurance related to the property.
Any type of insurance related to the property.
✅ Repair costs
Maintenance, not value-adding improvements.
Maintenance, not value-adding improvements.
✅ Property depreciation (3%)
3% of the structure's value (Continente) per year.
3% of the structure's value (Continente) per year.
✅ Agency / lawyer fees
Including commission, which has been the landlord's responsibility since 2023.
Including commission, which has been the landlord's responsibility since 2023.
✅ Unpaid rent
If the tenant didn't pay and 6 months have passed.
If the tenant didn't pay and 6 months have passed.
Important: to claim any deduction, you need a valid invoice or proof. Cash payments without a receipt aren't deductible. Keep all invoices for at least 4 years (the tax statute of limitations period).
New Tax Reductions 2024–2025
Note: these reductions aren't automatic — you must be able to prove you meet the conditions with documentation: the contract, the rent reduction, a stressed-zone certificate, renovation invoices.
Non-Resident Landlords — Special Rules
Definition of non-resident: if you spend more than 183 days a year outside Spain, you're considered a tax non-resident (no residente) — even if you own property in Spain.
Modelo 210: non-residents must file this form every quarter (by the 20th of the month following each quarter). Each quarter's rental income for that period is declared.
Non-resident tax rate: 19% for EU citizens and 24% for other countries. Note: EU non-residents can deduct expenses; others usually cannot.
A vacant property and non-resident status: even if you don't rent out the property, you must still file Modelo 210 with deemed income of 1.1% of the cadastral value annually.
Tax representation: non-residents living outside the EU who own property in Spain may be required to appoint a tax representative (representante fiscal). Check with a tax advisor.
Important Tax Deadlines
📅 IBI: each town hall sets a different date — typically between June and November. Set up automatic payment (Domiciliación Bancaria) to avoid penalties.
📅 IRPF tax return (residents): every year from April 1 to June 30. The previous year's rental income is declared. You can split payment into two installments.
📅 Modelo 210 (non-residents): every quarter — by April 20, July 20, October 20, and January 20.
📅 Modelo 600 (tenant): the tenant must pay the ITP via Form 600 within 30 days of signing the contract. Although this is the tenant's obligation, failure to pay can cause problems later for both parties.
Recommendation: set calendar reminders for tax deadlines. Late payment penalties start at 5% and increase up to 20% over time.
What Happens If You Don't Declare Rental Income?
Warning: Hacienda (the tax authority) can easily identify rental income through the deposit registered with IVAJ, the registered contract, and bank information. If you declare it yourself before they find it, the penalty is 1% per month. If Hacienda finds it first, the penalty is 50 to 150% of the unpaid tax.
More important than the penalty: if you don't declare rental income, you also lose access to the 50–90% tax reduction. This means you end up paying more tax overall than if you had declared it.
Common Mistakes Landlords Make
❌ Not declaring rental income: the most common — and the most costly — mistake.
❌ Not having invoices for expenses: without an invoice, an expense isn't deductible.
❌ Not getting the IBI receipt from the seller: outstanding IBI debt transfers to the buyer.
❌ Miscalculating depreciation: the 3% depreciation is calculated on the structure's value, not the property's total value (land cannot be depreciated).
❌ Forgetting Modelo 210: non-residents who fail to file it quarterly.
❌ Cash payments: expenses paid in cash (without an invoice) aren't deductible and create problems in case of an audit.
Annual Landlord Checklist
☐ IBI — paid by the town hall's deadline (or automatic payment set up)
☐ Repair and expense invoices — collected and filed
☐ Bank records of rent received — downloaded
☐ Property insurance — annual renewal checked
☐ IRPF return or Modelo 210 — filed by the deadline
☐ Tax reduction — eligibility for 50% to 90% checked
☐ Cadastral value — updated if it changed
💡 Important advice: if you rent out a property, have multiple income sources, or aren't a resident of Spain, consult an Asesor Fiscal (tax advisor). The cost is typically €100 to €250 a year — well worth it compared to the tax savings and avoiding potential penalties.
Security Systems for Homes and Shops in Spain
A guide to choosing an alarm · cameras · trusted providers 2025–2026
Why Is Installing a Security System Important?
Beyond preventing theft and illegal occupation, installing a security system has several other practical benefits: many insurance companies in Spain offer a 15 to 30% discount on policies for properties equipped with an alarm. Also, in case of illegal occupation, having video recording can be strong evidence in court.
Important note for landlords: under the new 2025 law, if you report illegal occupation within 48 hours, police can act without a judicial order. Recording cameras provide this proof.
Types of Security Systems
🔔 Monitored Alarm (Alarma con CRA): when a sensor triggers, the 24-hour monitoring center (CRA) is alerted immediately and contacts the owner and, if needed, the police. The best option for homes and shops.
📹 CCTV Cameras (CCTV/Videovigilancia): 24-hour video recording. Viewable from a mobile phone. Both a deterrent and legal evidence.
🌫️ Security Fog (ZeroVision / Niebla de seguridad): in case of intrusion, fills the room with non-toxic fog that reduces the intruder's visibility to zero. An advanced technology offered by Securitas Direct.
🔒 Access Control (Control de Accesos): for shops and commercial buildings — card, code, or fingerprint. Prevents unauthorized entry.
📱 Smart Home Security: mobile connectivity, instant alerts, remote control. Suitable for vacant or seasonal properties.
Trusted Security Companies in Spain
🥇 Securitas Direct (Verisure)
Spain's largest security company — 2 million customers
Consumer award winner 2024
✓ PreSense sensor — detection before intrusion
✓ ZeroVision security fog
✓ My Verisure app
✓ Private security + police response
✓ Backup battery for power outages
− Contract with a commitment period (Permanencia)
📞 900 897 932
🌐 securitasdirect.es
💶 From €35/month (estimated)
🥈 Movistar Prosegur Alarmas
Second-largest company — partnered with Movistar
No-commitment option available
✓ 360° camera with AI
✓ Dual connectivity (GPRS + internet)
✓ ContiGo service — mobile SOS
✓ No-commitment option available
✓ Free equipment with basic packages
− Discounted packages require a 3-year commitment
📞 900 100 799
🌐 prosegur.es
💶 From €30/month (estimated)
🥉 ADT Alarmas
International — strong in the commercial sector
Best for shops and offices
✓ Commercial security expertise
✓ Cybersecurity package included in the basic contract
✓ Professional IP cameras
✓ Access control system
✓ Well-suited for shop chains
− Higher pricing for home use
📞 900 104 208
🌐 adt.es
💶 From €40/month (estimated)
Quick Comparison — Which Is Best for You?
Important Tips Before Signing a Contract
📋 Commitment period (Permanencia): most companies have a 1 to 3 year contract. Early termination usually carries a penalty. Be sure to read this clause carefully.
🔧 Installation cost: some companies offer free installation, others charge separately. Clarify this before signing.
📡 Connection type: systems that use both GPRS and internet are safer — if one fails, the other keeps working.
🏘️ Coverage areas in Alicante: all three companies have full coverage in Alicante and along the Costa Blanca. Ask about coverage for villages farther from the city.
⚠️ Be wary of door-to-door sellers: some door-to-door salespeople offer misleading contracts with difficult terms. Always go through the official website or direct contact.
💡 Final advice: before choosing, ask all three companies for a "free security assessment" (Estudio de Seguridad Gratuito). A specialist visits your property, assesses your needs, and gives you an exact price — with no commitment.
Illegal Occupation of Property in Spain (Okupación)
The new 2025 anti-occupation law — landlord rights — the fast-track eviction process
What Is Illegal Occupation?
An "Okupa" refers to someone who enters a vacant property without the owner's permission and lives there. This phenomenon has increased sharply in Spain in recent years — in 2024, around 16,400 complaints about illegal occupation or entry into property were filed in Spain.
There are two types of occupation: Allanamiento — entering a residential property by force or violence; Usurpación — occupying a vacant property without violence. Both are criminal offenses.
The New Anti-Occupation Law — Since April 3, 2025
A major change: since April 3, 2025, a new anti-occupation law (part of Ley Orgánica 1/2025) has come into effect in Spain. This law has significantly accelerated the judicial process for evicting occupants.
⚡ 48-hour express eviction: if police identify the occupation within the first 48 hours, they can proceed with eviction without needing a court order.
⚡ 15-day fast-track court process: under the new law, property occupation offenses are handled through a "fast-track court" (Juicio Rápido), and an eviction order can be issued within a maximum of 15 days from the date the complaint is filed.
🚫 Ban on local address registration: the new law prohibits occupants from registering (Empadronamiento) at the occupied property and limits their access to social services during the occupation.
If Your Property Has Been Occupied — What to Do
✅ Step one — act quickly: time is critical. If you file a complaint within 48 hours, you can request an express eviction. Contact the police (091) or the courts.
✅ Step two — gather evidence: photos, video, neighbor testimony. Prepare your ownership documents: the property deed (Escritura), IBI bill, land registry certificate.
✅ Step three — file an official complaint: the owner must file an official complaint with the police or courts and present their ownership documents — title deed, IBI receipt, rental contract if one exists.
✅ Step four — request precautionary action: while the case is being processed, a judge can issue an order for temporary eviction.
What Not to Do
🚫 Don't change the locks yourself or force entry: cutting off water and electricity without a court order, or forcing entry, can constitute the criminal offense of "coercion" (Coacciones) against the owner themselves.
🚫 Don't negotiate directly with the occupants: this can complicate the legal process and may even end up benefiting the occupant.
🚫 Don't hire private "Desokupadores" (eviction specialists): private companies that remove occupants through pressure and intimidation operate illegally and put you at legal risk.
An Important Distinction — Occupant or Non-Paying Tenant?
These are two completely different situations. Illegal occupation (Okupa) means no contract exists at all. A non-paying tenant means a rental contract exists but rent isn't being paid.
Important note for tenants: if you have a rental contract and a dispute with your landlord, completely different rules apply, and you have much stronger legal protections. You're not considered an occupant.
Prevention — How to Protect Your Property
🔒 Install security locks: anti-theft locks and night-vision cameras. Occupants look for easy targets.
💡 Keep the property looking "lived-in": use timed lights, keep the mailbox emptied, and maintain a lived-in appearance. Occupants look for properties that appear completely abandoned.
👀 Keep neighbors informed: ask neighbors to report any suspicious activity to you or the police.
📋 Property insurance with occupation coverage: some home insurance policies in Spain cover lawyer fees and damage caused by illegal occupation.
The Situation Across Different Cities
Barcelona and Catalonia: have the highest occupation rates. The judicial process is somewhat slower there, though the new 2025 law has sped things up.
Madrid: local police (Policía Municipal) usually respond faster.
Alicante and Valencia: occupation rates are lower than Barcelona and Madrid, but there's risk in tourist areas with vacant seasonal properties.
⚠️ The information provided is general in nature. If you encounter illegal occupation, contact the police (091) immediately and consult a lawyer.
Mortgage (Hipoteca) Guide for Spain
Trusted banks · loan terms · documents · 2025–2026 rates · special tips for foreign buyers
General Mortgage Eligibility Conditions
The golden rule: Spanish banks typically lend up to 80% of the property's value. This means you need at least 20% in cash — plus 12 to 15% in additional purchase costs. In practice, you should have 35% of the total property price available in cash.
📊 Debt-to-income ratio: the monthly installment shouldn't exceed 30 to 35% of the household's monthly income. The bank also factors in all your existing debts.
📅 Applicant's age: banks usually structure loans so the final installment is paid before age 75. This means for a 30-year mortgage, you should be under 45.
💼 Job stability: for employees: at least 6 months in your current job. For self-employed (Autónomo): at least 2 years of tax history.
🌍 For foreign residents of Spain: conditions similar to Spanish citizens — requires an NIE, a bank account, and Spanish income documentation.
For non-residents: banks typically lend only up to 60 to 70% of the property's value. Conditions are stricter and interest rates higher.
Types of Mortgages
🔒 Fixed Rate (Tipo Fijo)
The same installment throughout the loan term. High security and predictability. The rate is usually slightly higher than variable. Recommended for those who want stability.
Current 2026 rate: 2.8 to 3.8%
📈 Variable Rate (Tipo Variable)
Based on Euribor + the bank's margin (typically 0.5 to 1%). Reviewed every 6 or 12 months. Higher risk but cheaper when Euribor is low.
Euribor in January 2026: around 2.5% + margin ≈ 3.0 to 3.5%
🔄 Mixed Rate (Tipo Mixto)
Fixed for the first few years (e.g. 5 or 10), then becomes variable. A balance between security and price. The most popular type in Spain in recent years.
Current 2026 rate: 2.5 to 3.2% (for the initial fixed period)
Spain's Main Banks for Mortgages
🥇 CaixaBank
Spain's largest bank by customer count — extensive branch network
Top pick for newcomers
✓ Easy account opening for foreigners
✓ Branches in most Spanish cities
✓ Strong mobile app (CaixaBankNow)
✓ Loans up to 30 years
✓ Online mortgage calculator tool
− Rates are typically average
🌐 caixabank.es
📞 900 40 40 90
💶 Fixed from 2.95% — variable Euribor+0.6%
🥈 Banco Santander
Spain's second-largest bank — strong international presence
Well-suited for foreigners
✓ Strong experience with foreign clients
✓ Special loans for non-residents
✓ Fast digital process
✓ Branches in Alicante and the Costa Blanca
✓ Hipoteca Online with no fees
− Sometimes stricter conditions
🌐 bancosantander.es
📞 915 123 123
💶 Fixed from 2.85% — mixed from 2.5%
🥉 BBVA
Spain's third-largest bank — a leader in digital banking
Best mobile app
✓ BBVA Valora — free property valuation
✓ Fully online process
✓ Fast online pre-approval
✓ No opening/closing fees
✓ Competitive mandatory insurance
− Stricter for self-employed applicants
🌐 bbva.es
📞 900 102 801
💶 Fixed from 3.0% — variable Euribor+0.4%
💡 Banco Sabadell
Strong in Catalonia and along the Mediterranean — well-suited for Alicante
Strong focus on Alicante and Valencia
✓ Strong presence on the Costa Blanca
✓ Special conditions for foreign buyers
✓ English-language service available
✓ Loans up to 80% for residents
− Rates slightly above average
− Opening fee (Comisión de apertura)
🌐 bancosabadell.com
📞 900 500 170
💶 Fixed from 3.1% — mixed from 2.7%
🌐 Openbank (Santander's online bank)
Fully digital — the best rates on the market
Best rate in 2026
✓ The lowest market rate in 2026
✓ No opening fee
✓ No need for a salary deposit
✓ Fully online process
− No physical branches
− Harder for some foreigners
🌐 openbank.es
💶 Fixed from 2.68% — variable Euribor+0.35%
Quick Bank Comparison
Documents Required to Apply for a Mortgage
📋 Identity Documents
✅ Valid NIE
✅ Valid passport
✅ Residency certificate (Empadronamiento)
✅ Residency card (if applicable)
💼 Employment & Financial Documents
✅ Last 3 payslips (employment letter)
✅ Latest IRPF tax return
✅ Last 6 months of bank statements
✅ For self-employed: Modelo 130 + Vida Laboral
🏠 Property documents: Nota Simple, the Arras pre-contract, the property's floor plan, fee and IBI documentation.
Note for international buyers: the bank may ask for proof of the source of funds (Origen de fondos). Prepare any document showing where the money came from — property sale, inheritance, savings.
The Mortgage Application Process — Step by Step
📌 Step 1 — Pre-approval (Preconcesión): contact several banks and request "pre-approval." Based on your income and debts, the bank gives you a loan range — with no commitment. Time: 1 to 3 days.
📌 Step 2 — Submit documents: after finding a property and signing the Arras, submit your complete documentation to the bank. Time: 1 to 2 weeks.
📌 Step 3 — Property valuation (Tasación): the bank sends an official appraiser (Tasador) to assess the property. The cost, €300 to €600, is yours to cover. Time: 5 to 10 days.
📌 Step 4 — Final approval (FEIN and FIAE): the bank gives you two documents, the FEIN (official loan offer) and FIAE (warnings). Spanish law gives you 10 days to review them. Time: 5 to 7 days.
📌 Step 5 — Notary: one day before signing the purchase deed, you must visit a notary (free) and sign the FEIN. Time: 1 day.
📌 Step 6 — Signing the Escritura: the loan contract is signed at the same time as the purchase deed, and the funds are transferred to the seller. Total process: 4 to 8 weeks.
Additional Mortgage Costs
Good news: since 2019, under Spain's mortgage law, the notary fee and AJD on the loan contract are the bank's responsibility — not the buyer's.
Special Tips for Foreign Buyers
🔑 Open an account first: before taking any other step, open a Spanish bank account. CaixaBank and Sabadell are usually the easiest banks for foreigners.
🌍 If you're not a resident: you can still get a mortgage, but conditions are stricter. A loan cap of 60 to 70% of the property's value, higher interest rates, and more documentation.
💱 Source of funds: the bank may ask for documents proving the source of your funds (Justificación del origen de fondos). Property sale, savings, or inheritance — prepare any document you have.
🤝 Mortgage broker (Broker Hipotecario): a mortgage broker like Housfy, Helpmycash, or Idealista Hipotecas can negotiate with several banks on your behalf and find the best rate. It's usually free.
⚠️ Watch out for tied conditions (Vinculaciones): banks sometimes require you to buy their insurance, open an account, or take a credit card in exchange for a lower rate. Read all the conditions before signing.
💡 Final advice: negotiate with at least 3 banks and compare their offers. Even a 0.2% difference in rate on a €200,000, 30-year mortgage adds up to over €12,000 in total payment difference.
Calculators
Property purchase · rent increase · mortgage · checklist · dictionary
🏛️ Full Property Purchase Cost Calculator for Spain
Many buyers only look at the listed property price — but the reality is that the final cost of buying property in Spain is typically 12 to 15% higher than the agreed price.
▸ITP — resale property transfer tax. 6 to 11% depending on the region.
▸IVA — for new property from a developer. Flat 10%.
▸AJD — legal documents tax. 0.5 to 1.5%.
▸Notary + registration — cost of drafting and registering the official deed.
💡 Note: figures are estimates. Consult a lawyer before purchasing.
Calculation Result
Property price
ITP tax
AJD
Notary (estimated)
Land registry (estimated)
💰 Total cost
* Estimated. Exact amounts vary depending on the property's specific conditions.
📈 Legal Rent Increase (IRAV) Calculator
Many landlords increase rent beyond the legal limit — and many tenants don't know they have the right to object. This calculator computes the maximum permitted increase.
▸Contracts before May 26, 2023: capped at 2% in 2023 and 3% in 2024.
▸Contracts after May 26, 2023: from January 2025, the IRAV index applies — lower than CPI.
▸If the landlord increased it by more: claim back the difference or refuse to pay the excess.
💡 Note: the landlord can only increase rent once a year and must give written notice 30 days in advance.
Calculation Result
Current rent
Index
Maximum increase
📋 Maximum new rent
🏦 Mortgage (Hipoteca) Calculator
To buy property in Spain, most people use a bank loan (Hipoteca). Spanish banks typically lend up to 80% of the property's value — meaning you need at least 20% in cash, plus 12 to 15% in additional costs.
▸Fixed rate (Tipo Fijo): a fixed installment throughout the loan term. More security, but a slightly higher rate.
▸Variable rate (Tipo Variable): based on Euribor + the bank's margin. More risk, but usually cheaper.
▸Current Euribor rate (2025): around 2.5%. Banks typically add a 0.5 to 1% margin.
💡 The golden rule: the monthly installment shouldn't exceed 30 to 35% of the household's monthly income. Banks check this.
Calculation Result
Loan amount
Interest rate
Loan term
📋 Monthly installment
Total amount paid
Total interest paid
Installment-to-income ratio
Fill out this checklist before moving in or moving out of a property. Once completed, email it to the landlord.
Search Spanish legal terms and their English meanings.
Frequently Asked Questions
The most common questions about property in Spain — answered and ready