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What types of rental contracts are there in Spain?

Find out about the different rental contracts!

Civil Law
What types of rental contracts are there in Spain?

Tenancy agreement for a regular dwelling

This type of contract is for the situation in which the tenant is going to carry out his/her daily life in the dwelling, i.e. it constitutes his/her home. This is the type of contract with the longest duration:

- 5 years in the case that the owner is a natural person, which may be extended for 3 years (and more in some cases that are included in the Law on Urban Leases). The law specifically states the following: 

o The duration of the lease shall be freely agreed by the parties. If this is less than five years, or less than seven years if the lessor is a legal entity, on the day the contract expires, it will be compulsorily extended by annual instalments until the lease reaches a minimum duration of five years.

- 7 years if the property is owned by a legal entity, which can also be extended for periods of 3 years or more.

As long as the tenant fulfils his obligations, he can enjoy a long period of stability to be able to live in the property.

Lease-purchase contract

This type of contract is on the rise due to the difficulty in obtaining a mortgage loan to buy a property. It is a contract whereby you rent the property where you want to live (with the durations detailed in the previous section), but with the possibility of eventually buying it.

The contract will set the price of the sale and purchase and will detail how long the option to buy is valid, which may coincide with the lease term or be shorter.

It can be agreed that the rental instalments to be paid will be subtracted from the final purchase price in full, 50% or whatever percentage is agreed. This allows you to reduce the final price and during the process you can seek financing for the rest.

Temporary housing rental contract

The temporary housing contract is designed for people who need housing for a specific period of time, while keeping their main residence elsewhere. For example: university students, students in competitive examinations, temporary postings by police officers, teachers, architects or workers for a specific construction site, etc.

The duration is agreed between the parties, taking into account the temporary reason for the need, which must be included in the contract: students and teachers, from September to June; architects, for the duration of the work... It can also be justified by the activities or characteristics of the place, for example, summer season, winter season, etc.

We warn you that it is not legal to put 11 months to a contract to avoid it being of long duration and having the obligations coming from the LAU. If it is justified that the tenant is living in the property, it will not be considered as temporary, but as a habitual residence.

Lease of rooms

In this type of lease the separate enjoyment of the rooms is rented to different tenants. The use of the common parts is made under certain rules of coexistence that are detailed in the contract itself. The duration is not established by law, but it is usually for years or coinciding with the work/collecting calendar.

Tourist lease contracts

The properties are rented, furnished and prepared for immediate use. They are usually promoted in tourist supply channels. They need to have an administrative license to be able to give this use to the dwelling.

This type of lease is valued as an economic activity, so it will be taxed as such.

Commercial lease contract

They are those that are directed to rent stays that are not going to be destined to housing: commercial premises, offices, garages... They are regulated by the Law of Urban Leases in the norms directed to "use different from housing" where it is gathered, for example, that 2 months of deposit can be requested. In this type of contract you are free to agree on the duration, extensions and installments.

If you need information about a lease contract call us and you will receive the help you need.

Civil Law

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