Long term rental contracts in Spain
A residential tenancy in Spain gives the tenant the right to extend annually up to five years where the landlord is an individual and seven where the landlord is a company, regardless of the term written into the contract.
gelisted editorial team · Updated 15 August 2026
The short version
- Mandatory extension runs to 5 years, or 7 with a corporate landlord.
- A tacit further extension of up to 3 years follows if neither party gives notice.
- The tenant may leave after 6 months with 30 days' notice.
- The deposit is one month's rent and must be lodged with the regional body.
The term in the contract is the landlord's minimum commitment, not the maximum. Understanding that one point avoids most disputes between owners and tenants.
How the term works
If the agreed term is shorter than 5 years, the tenant may extend it annually until 5 years are reached, and until 7 where the landlord is a legal entity. The landlord cannot refuse, with a narrow exception where the contract states that the property will be needed as a home for the landlord or close family and certain conditions are met. At the end of that period, if neither party gives notice, a tacit extension of up to 3 further years applies year by year.
| Stage | Rule | Notice |
|---|---|---|
| Mandatory extension, individual landlord | up to 5 years | |
| Mandatory extension, corporate landlord | up to 7 years | |
| Landlord ending at the limit | must notify | 4 months before |
| Tenant ending at the limit | must notify | 2 months before |
| Tacit extension after the limit | up to 3 years | annual |
| Tenant leaving early | after 6 months | 30 days |
| Deposit | 1 month's rent | lodged with the region |
| Additional guarantee | up to 2 further months | by agreement |
Rent and indexation
Rent may only be revised during the contract if the contract says so, and the revision follows the index agreed within the limits set by law. Outside a revision clause, the rent stays fixed for the whole extension period. This is the point most foreign owners miss: a rent agreed in year one may still be running in year five, so the starting figure matters far more than in markets with annual renegotiation.
The deposit
One month's rent for residential lettings, which the landlord must lodge with the regional housing body rather than keep. An additional guarantee of up to 2 further months may be agreed and is held by the landlord. At the end of the tenancy the deposit is returned within 1 month of handing back the keys, and interest accrues in the tenant's favour if the landlord is late.
Failing to lodge the deposit is an administrative breach and weakens the landlord's position in any later dispute over damage.
Ending it early
The tenant may withdraw once 6 months have run, giving 30 days' notice. If the contract provides for it, the landlord may be compensated with the equivalent of 1 month's rent for each remaining year, calculated proportionally. The landlord has no equivalent right to end early, which is the asymmetry that most surprises owners used to shorter, more balanced tenancies elsewhere.
Frequently asked
+How long can a tenant stay?
Up to 5 years by annual extension with an individual landlord, and up to 7 with a company.
+Can I end the contract early as landlord?
Only in the narrow case where the property is needed as a home for you or close family and the contract provides for it.
+Can the tenant leave early?
Yes, after 6 months with 30 days' notice, with compensation only if the contract provides for it.
+How much deposit can I take?
One month's rent, which must be lodged with the regional body, plus up to two further months as an additional guarantee.
+Can I raise the rent each year?
Only if the contract contains a revision clause, and then within the limits set by law.
Sources
- 1Boletín Oficial del Estado, BOE (August 2026)
- 2Govern de les Illes Balears, Govern de les Illes Balears (August 2026)