Renting in Spain as a Foreigner: Deposits, Agency Fees, Renewals and Rent Increases Explained

How Much Is the Deposit When Renting in Spain? One Month’s Rent by Law, Agency Fees Fall on the Landlord, and the New Renewal and Rent Rules Await Parliament

When renting in Spain as a foreigner, the legal deposit for a home is one month’s rent under Article 36.1 of the Urban Leases Act (Ley de Arrendamientos Urbanos, LAU); any extra guarantee a landlord asks for is capped at two months’ rent on leases of up to five years under Article 36.5, and agency and signing fees have fallen on the landlord since the 2023 Housing Act (Ley 12/2023).

On 3 October 2026, the Spanish outlet La Bandera reported, citing the National Statistics Institute’s (INE) 2025 Living Conditions Survey, that about 52% of people renting in Spain were born abroad. Three days later, on 6 October 2026, the government issued two new emergency housing decrees (Real Decreto-ley, RDL): No. 29/2026 took effect on 8 October 2026, and No. 28/2026 is due to take effect on 15 November 2026. Both were published in the Official State Gazette (Boletín Oficial del Estado, BOE) on 7 October 2026. Parliament has been dissolved and a general election is set for 29 November 2026, so whether the decrees stay depends on a ratification vote in the Permanent Deputation, the standing committee that acts while parliament is dissolved. Zagdim has already covered the build-up, including the parliamentary defeat of the earlier decrees, the snap election call and landlords pulling rentals off the market; those articles are listed in the references.

This guide sorts the questions foreign tenants run into most. It first splits the rules into three groups (already in force, in force but awaiting ratification, and not yet in force), then covers the deposit, agency fees, lease length and renewal, rent increases, early exit and move-out, and the foreigner identification number (NIE).

Key Points

• Who should pay attention: foreigners moving to Spain for work, study or a long stay and looking for a home; foreign tenants who have already signed a lease and want to know how renewal and rent increases work; anyone helping family or friends find a home or negotiate a lease in Spain.
• The rules fall into three groups: rules that do not depend on this ratification and have been in the LAU for years (a one-month deposit, agency fees paid by the landlord, a five-year minimum term); RDL 29/2026, in force since 8 October 2026 but awaiting ratification (rent update limits, temporary extension, the end-of-lease condition report and more); and RDL 28/2026, due to take effect on 15 November 2026 and also awaiting ratification (automatic renewal and compensation when a landlord does not renew).
• Timing of the vote: Spanish media reported on 16 and 17 October 2026 that the Permanent Deputation is expected to vote on 12 November 2026; no official parliamentary agenda has been published. Media expect RDL 29/2026 to be more likely to pass and RDL 28/2026 less likely, but the outcome is not settled.
• Before signing, check four things: whether the deposit is one month, whether any extra guarantee exceeds two months, whether an agency is passing its fees on to you, and whether the contract is an ordinary residential lease or a temporary one.

Spanish Rental Rules in Three Groups: In Force, Awaiting Ratification, and Starting 15 November

Start with the dates. The table below is based entirely on the consolidated LAU, RDL 29/2026 and RDL 28/2026 as published in Spain’s Official State Gazette (BOE).

Both decrees need a vote in the Permanent Deputation. Media reports of 16 and 17 October 2026 put the vote on 12 November 2026. That is an expectation, not an official date, and Congress has not published how the one-month ratification deadline is counted, so the date could move. RDL 28/2026 is due to take effect on 15 November 2026, after the expected vote; if it is not ratified it will never have been in force for a single day.

Deposit and Extra Guarantee When Renting in Spain: One Month by Law, Up to Two Months More

The Spanish deposit is called a fianza. The four items below come from LAU Articles 36 and 17.2; apart from the rent-default insurance rule (RDL 29/2026, awaiting ratification), none depends on this ratification:

The extra guarantee can be a bank guarantee or another form, and the cap applies to its value; it is not two extra months of cash on top of the deposit. The cap was added to the LAU by RDL 7/2019. RDL 29/2026 amends Article 36.5 to add the ban on requiring rent-default insurance and the one-month cap for temporary leases.

The LAU also sets rules for getting the deposit back: if it has not been returned one month after the tenant hands back the keys, the balance earns statutory interest (Article 36.4). Regions may also require landlords to lodge the deposit with a regional body (LAU Additional Provision 3), and practice differs by region, so ask the landlord where the deposit will be held.

RDL 29/2026 also adds Article 36.7: at the end of a lease the parties should sign a written end-of-lease document recording the condition of the home, and if none is signed, or it lists no damage, the home is presumed to have been returned in good condition unless proven otherwise. This too has applied since 8 October 2026 and awaits ratification, but photographing the home at move-in and move-out and having the landlord sign are sensible whatever the outcome.

Agency Fees When Renting in Spain: The Landlord Pays and Cannot Rename the Charge

Since the Housing Act (Ley 12/2023) took effect on 26 May 2023, agency fees for renting in Spain are the landlord’s to pay; the law provides that property management and contract formalisation costs are borne by the landlord.

RDL 29/2026 makes Article 20.2 more explicit. The three points below come from that article, in force since 8 October 2026 and awaiting ratification:

1. Property management and formalisation fees may not be passed to the tenant, directly or indirectly, under any name or description.
2. The scope covers fees for services to prepare, sign, manage, amend or renew the lease.
3. Other services that are not essential to the lease can be charged to the tenant only if the tenant asked for them in writing in advance and was told they were optional and what they cost.

Zagdim has not compared the wording before and after this amendment word for word; what is clear is that the principle that the landlord pays has been in the LAU since 2023. If an agent’s quote lists a “signing fee”, “management fee” or “renewal fee”, that principle is the basis for asking questions.

Lease Length and Renewal: Five-Year Minimum, and New Rules From 15 November Awaiting Ratification

The minimum term of a residential lease is five years, or seven if the landlord is a company (LAU Article 9.1, since 2019). If the contract sets a shorter term, it renews year by year until it reaches five (or seven) years, unless the tenant gives at least 30 days’ notice not to renew. An individual landlord who wants the home back for their own use within five years must have said so expressly in the contract at signing, can only rely on it after the first year, and must give at least two months’ notice (Article 9.3).

What happens after the five (or seven) years depends on which rules apply. The left column below comes from the current text of LAU Article 10.1, the right column from the new Article 10.1 in RDL 28/2026:

The compensation is “the higher of”, not a flat 12 months: a tenant who has lived in the home for 15 years would receive more than 12 months under the one-month-per-year measure. It is paid on handing back the home. There are five cases in which the landlord does not have to pay: an individual landlord, or their relatives up to the second degree or a spouse under a divorce judgment, needs the home as permanent residence; the tenant has not lived there for more than six months in the previous twelve (unless justified); the tenant has another suitable home in the same municipality; the parties sign a new contract; or the tenant turns down an offer of a new contract made within the notice period (at least five or seven years, with rent that complies with LAU Article 17.6). These reasons must be stated in the notice.

Note the transitional rules too (single transitional provision of RDL 28/2026). Non-renewal notices validly given by a landlord before 7 October 2026 keep their effect, with no compensation. For leases with fewer than six months left on 15 November 2026, the landlord may give four months’ notice. Leases already in the old tacit-extension period under the old Article 10.1 run out under the old rules and the new rules apply after that.

RDL 29/2026, Final Provision 5, also contains a “temporary extension”, in force since 8 October 2026 and awaiting ratification. A residential lease whose compulsory term ends before 31 December 2028 (or whose tacit extension period ends), where the tenant has paid rent on time every month for the past eight months, can be extended on the tenant’s request year by year for up to two more years on unchanged terms. The landlord must accept unless the parties agree otherwise or sign a new contract, or the landlord has given notice of need for own use under Article 9.3. It does not apply if the parties agree a renewal or new contract with rent at least 5% lower. When the new Article 10.1 of RDL 28/2026 applies, this temporary extension does not.

Rent Increases in Spain: No Clause Means No Increase, and a Temporary Limit to End-2027

LAU Article 18.1 says rent can be updated only on each anniversary of the lease and as agreed by the parties; with no express agreement, there is no update. If a clause exists but names no index, the Reference Index for Annual Updates of Residential Leases (IRAV) applies, and the increase cannot exceed the IRAV change. This wording was amended by RDL 29/2026 and has applied since 8 October 2026, awaiting ratification.

RDL 29/2026, Final Provision 6, adds a temporary limit for residential leases whose update date falls between 8 October 2026 and 31 December 2027:

• If the current rent already exceeds the maximum under the reference price system, no increase may be applied.
• In other cases the tenant can negotiate the update with the landlord; with no new agreement, the increase may not exceed 2%.

So “rents in Spain can rise by at most 2%” is not accurate: 2% is the ceiling where there is no new agreement, it applies only in that period, and outside it the IRAV rules apply. An update must also be notified in writing under LAU Article 18, and the updated rent is payable from the month after the notice.

Early Exit and Temporary Leases: The Contract Many New Arrivals Sign

A tenant who has lived in the home for at least six months can leave early with at least 30 days’ notice (LAU Article 11.1); the current Article 11.3 says this exit does not give rise to compensation for the landlord. This is RDL 29/2026 wording, in force since 8 October 2026 and awaiting ratification.

The temporary lease (vivienda temporal) is another core item of RDL 29/2026, in force since 8 October 2026 and awaiting ratification, in LAU Articles 2.3, 7.2 and 9 bis:

• It covers a tenant who is temporarily away from their usual home for a justified and provable reason; the contract must state that reason, and the burden of proof is on the landlord.
• The term must exceed 31 days and, as a rule, not exceed 12 months.
• If it runs beyond 12 months without justification, or more than two consecutive temporary contracts are signed for the same home between the same parties, the first is treated as an ordinary residential lease.
• A contract that states no reason is treated as an ordinary residential lease, back to the signing date.
• The tenant can leave after one month with 10 days’ notice; the extra guarantee is capped at one month’s rent.

Newcomers to Spain often start with a temporary lease. Before signing, check that the contract states the reason and the term; if the reason is blank, the provision says it will not be treated as a temporary lease.

What Foreigners Need to Rent a Home in Spain: An NIE Is Not a Legal Requirement but Often Asked For

The foreigner identification number (Número de Identidad de Extranjero, NIE) is a personal identifier for foreigners in Spain. Under Article 205 of the Aliens Regulation (Real Decreto 1155/2024), foreigners with economic, professional, social or other ties to Spain can apply to the police: in Spain through an immigration office or police station, from abroad through a Spanish consulate. The applicant must state the reasons and must not be in Spain irregularly; the authority must decide within 5 days, and silence after that is treated as a refusal.

The LAU does not say a tenant must have an NIE. Zagdim’s understanding, however, is that some landlords, agents and utility companies ask for one; that is each party’s own practice and Zagdim has no official statistics on it. Before signing, ask what documents are wanted, and prepare passport, residence or visa papers and proof of income or employment as your situation requires; requirements vary and there is no fixed legal checklist.

Why Foreigners in Spain Mostly Rent: Reading the INE Figures

INE’s 2025 Living Conditions Survey tables classify households by the nationality of the reference person and show the share renting at market price. All the figures below come from INE table 9995 (percentages of households):

The “about 52% of renters were born abroad” figure at the start was calculated by the media from the same survey; it is based on country of birth, counts people rather than households, and INE has not published it or said whether microdata were used. The two sets of figures use different bases and cannot be converted into one another. They show that foreign residents rent at high rates; they do not explain why.

Common Misconceptions About Renting in Spain

1. Misconception: whatever deposit and guarantee the landlord or agent names must be paid. The legal deposit is one month’s rent; the extra guarantee is capped at two months in value. Tip: if you are asked for more, ask which article allows it.
2. Misconception: rent can rise by 2% at most. 2% is the temporary ceiling where there is no new agreement, for updates falling between 8 October 2026 and 31 December 2027, and it awaits ratification. Tip: check your own update date and contract clause first.
3. Misconception: from 15 November, landlords can no longer decline to renew. RDL 28/2026 does not ban non-renewal; it lengthens the notice period and requires compensation, and it awaits ratification. Tip: do not treat rules awaiting ratification as already in force.
4. Misconception: the tenant pays no agency fee because the agent does not charge one. The provision says the landlord bears management and formalisation fees and they cannot be renamed and passed on. Tip: ask about “management” or “renewal” fees on any quote.
5. Misconception: you cannot rent without an NIE. The LAU does not require one, though some landlords or agents ask. Tip: ask for the document list first; an NIE decision is due within 5 days and silence counts as refusal.

Renting in Spain: Example Scenarios

Scenario 1: a foreigner who has just received a job offer and is still abroad. They want a short rental first and a longer one later. When signing a temporary lease, they should check that the contract states the reason and the term (over 31 days, generally no more than 12 months; these temporary-lease rules await ratification). The deposit is one month by law, and the extra guarantee is at most one month; if an agent asks for a signing fee, they can ask about LAU Article 20.2.

Scenario 2: a foreign tenant on a five-year lease that ends in 2027. They want to know what happens at the end. Because the end date falls after 15 November 2026, which rules apply depends on whether RDL 28/2026 is ratified. If not, the current rules continue: unless the landlord gave at least four months’ notice not to renew, the lease renews year by year for up to three more years. If it is ratified, the landlord needs six months’ notice, compensation is due if they do not renew, and without notice the lease renews for five years. The tenant should check the end date in the contract and watch the ratification vote expected on 12 November 2026.

Scenario 3: a tenant one year into a lease who receives a rent increase notice. If the update date falls between 8 October 2026 and 31 December 2027, they can negotiate with the landlord; if the rent already exceeds the reference price ceiling, it cannot rise; with no new agreement, the increase is at most 2%. They should first check whether the contract has an update clause at all: no clause, no increase.

Renting in Spain: Frequently Asked Questions

Is the deposit always one month’s rent when renting in Spain?

The legal deposit is one month’s rent (LAU Article 36.1). An extra guarantee is separate: on residential leases of up to five years, at most two months’ rent in value, and at most one month on temporary leases. A landlord may not ask for more than one month’s rent in advance, nor require rent-default insurance (the latter awaiting ratification).

Do I have to pay an agency fee when renting in Spain?

No. Under LAU Article 20.2 and the 2023 Housing Act, management and formalisation fees are borne by the landlord and may not be passed to the tenant directly or indirectly under any name. Only non-essential extra services can be charged, and only if the tenant requested them in writing in advance after being told they were optional and what they cost.

What is the minimum lease term for renting in Spain?

A residential lease has a minimum term of five years, or seven if the landlord is a company (LAU Article 9.1). A shorter agreed term renews year by year up to five or seven years, and the tenant can decline with 30 days’ notice. Temporary leases (over 31 days, generally no more than 12 months) have separate rules that await ratification.

What changes to lease renewal from 15 November 2026?

RDL 28/2026 is due to take effect on 15 November 2026: after five or seven years the lease would renew automatically for five or seven years at a time, landlords would need six months’ notice, and compensation would be due if they do not renew. It awaits ratification by the Permanent Deputation, expected on 12 November 2026 according to media, and is less likely to pass; the outcome is not settled.

How much can rent be raised when renting in Spain?

With no clause, there is no increase; a clause is capped by the IRAV change. For updates falling between 8 October 2026 and 31 December 2027 there is also a temporary limit: no increase if rent already exceeds the reference price ceiling, otherwise whatever is newly agreed, and at most 2% if nothing is agreed. This limit awaits ratification.

Do foreigners need an NIE to rent a home in Spain?

The LAU does not require one. Under Article 205 of Real Decreto 1155/2024, foreigners with ties to Spain can apply for an NIE and the decision is due within 5 days. Some landlords or agents ask for it, practice varies, and it is worth asking what documents they want before signing.

Planning Life in Spain? Ask Zagdim

If you want to understand renting, residence and everyday arrangements for life in Spain, Ask Zagdim.

Important Disclaimer

This article is general information and does not constitute legal, tax or financial advice. It was written on 19 October 2026 and is based on the consolidated Urban Leases Act (updated 7 October 2026), Real Decreto-ley 28/2026 and 29/2026 (published 7 October 2026), Ley 12/2023, Real Decreto-ley 7/2019 and Real Decreto 1155/2024 as published in Spain’s Official State Gazette, and on INE’s 2025 Living Conditions Survey. RDL 28/2026 and 29/2026 await ratification by the Permanent Deputation; the outcome and the vote date (expected on 12 November 2026 according to media, with no official agenda seen) may change the rules described here. How a lease applies depends on the contract, regional rules and the individual case; consult a qualified lawyer or tenants’ association in Spain where needed.

Rules are current as of 19 October 2026; please check the latest notices from Spain’s Official State Gazette and the competent authorities.

References

Zagdim – Spain’s Parliament Rejects Emergency Housing Decrees as Protests Sweep the Country (5 October 2026) / Zagdim – Spain’s Sánchez Calls Snap Election for November 29 After Housing Defeat (6 October 2026) / Zagdim – Spain’s Landlords Withdraw Thousands of Rentals as New Tenancy Decree Takes Hold (15 October 2026) / Spanish Official State Gazette (BOE) – Real Decreto-ley 29/2026 of 6 October 2026, urgent measures to protect the social function of housing and expand affordable housing supply / Spanish Official State Gazette (BOE) – Real Decreto-ley 28/2026 of 6 October 2026, urgent measures to strengthen the stability of residential leases / Spanish Official State Gazette (BOE) – Ley 29/1994 Urban Leases Act (consolidated text, updated 7 October 2026) / Spanish Official State Gazette (BOE) – Real Decreto-ley 7/2019, urgent housing and rental measures / Spanish Official State Gazette (BOE) – Ley 12/2023, right to housing / Spanish Official State Gazette (BOE) – Real Decreto 1155/2024, Aliens Regulation (Article 205, NIE) / Spain’s National Statistics Institute (INE) – Living Conditions Survey 2025, table 9995: households by tenure and nationality of the reference person / La Bandera – Más de la mitad de los inquilinos en España han nacido en el extranjero (3 October 2026) / Moncloa.com – El Congreso votará el 12N los decretos de vivienda (17 October 2026) / Infobae/EFE – El Congreso prevé votar los decretos de vivienda un día después de la huelga general (16 October 2026) / RTVC/EFE – El Gobierno buscará de nuevo la convalidación de los decretos de vivienda en la Diputación Permanente (6 October 2026)