Long-term rental rules in Spain give your tenant at least 5 years (7 if a company lets), a deposit of one month's rent and yearly rises capped by the IRAV index, or 2 per cent until the end of 2027 unless you both agree more. A UK-resident owner pays 24 per cent Spanish tax on gross rent.
This guide reflects Spanish law on 13 November 2026, after Royal Decree-law 29/2026 (in force since 8 October, validated by Congress on 12 November). Congress repealed a second decree, 28/2026, the same day, so its five-year rollovers from 15 November will not happen. Still choosing between a holiday let and a long let? Start with our guide to buying property in Spain to rent out.
How long are rental contracts in Spain?
A lease on someone's main home lasts at least 5 years in practice when you let as a private individual, and 7 years when the landlord is a company. You can write a shorter term, but the contract then renews every year until it reaches that minimum, unless the tenant gives 30 days' notice before a renewal date.
| Stage | Rule | Who can end it |
|---|---|---|
| Minimum term | 5 years (individual) or 7 years (company) | Tenant after 6 months, on 30 days' notice. Landlord only in cases set by law |
| After the minimum term | Renews year by year, up to 3 more years | Landlord with 4 months' notice, tenant with 2 months' notice |
| No term written in | Treated as 1 year, then renews up to the minimum | As above |
As an individual landlord you can take the home back after the first year if you or close family need it as a permanent home, but only if the contract said so from the day it was signed. You then give at least 2 months' notice. If you might retire to Spain from the UK one day, this clause matters most. Buy through a company, a UK limited company included, and the minimum becomes 7 years with no own-use clause.
How much deposit can a landlord take in Spain?
The deposit (fianza) is one month's rent by law, paid in cash or by transfer. You can agree extra security, such as a bank guarantee, of up to 2 months' rent on contracts of up to 5 or 7 years. You cannot make the tenant buy rent guarantee insurance.
In the Valencian region, which covers the whole Costa Blanca, you must lodge the deposit with the regional government (Generalitat Valenciana) within one month of signing, or of the start of the tenancy if that came first. You pay it at a bank with form 806 or online with form 816. Failing to lodge it is a serious breach under the Valencian housing law, with fines of more than €600 and up to €3,000 (about £501 to £2,507). Lodging it late without being chased adds a surcharge of 5 to 20 per cent of the deposit, depending on the delay. Other regions have their own deadlines and offices.
An example with rent of €900 a month (about £752):
- deposit: €900, about £752, lodged with the region
- extra security: up to €1,800, about £1,504
- total security: up to €2,700, about £2,256
Return the deposit within one month of getting the keys back, or the tenant is owed statutory interest. At handover, both sign a written report on the state of the home. Without one, the law presumes, unless proven otherwise, that it came back in proper condition.
How much can you raise the rent in 2026?
You can raise the rent once a year, on the anniversary of the contract, and only if the contract allows it. The cap is the IRAV index, published monthly by Spain's statistics office (INE). Since 8 October 2026 the cap covers all leases, including those signed before 26 May 2023 that used to follow inflation. The latest reading, for September 2026, published on 14 October 2026, is 2.54 per cent, the highest since the index began.
Until 31 December 2027 there is a second limit. When the anniversary falls in that period and you and the tenant do not agree a new figure, the rent can rise by 2 per cent at most. If the rent is above the ceiling in the state's reference rent system, it cannot rise at all.
| Monthly rent | Rise | New rent |
|---|---|---|
| €900 (about £752) | 2 per cent, no new agreement | €918 (about £767) |
| €900 (about £752) | full IRAV of 2.54 per cent, if the tenant agrees | €922.86 (about £771) |
Give notice of the rise in writing, with the percentage, and the new rent applies from the following month. Towns declared stressed housing markets (zonas de mercado residencial tensionado) also have rent limits and extensions of up to 3 years, so check your town before you sign.
Buying a flat that already has a tenant
A sale does not end a lease. The buyer steps into the landlord's shoes for the first 5 years of the contract, or 7 if the seller was a company. The seller must first give the tenant formal notice of the price and terms, and the tenant has 30 days to buy on them.
Check one more date. For leases running on 8 October 2026 whose compulsory term ends before 31 December 2028, a tenant who has paid on time for the last 8 months can ask for up to 2 more years on the same terms. The landlord must accept unless you agree otherwise or need the home for yourself or close family. Ask your lawyer to read the lease before you reserve.
Who pays agency fees, IBI, community fees and bills?
You pay the agency and the cost of drawing up the contract. Spain's tenancy law (LAU) bans passing them on to the tenant, directly or indirectly. In contracts signed since 8 October 2026 you also cannot pass on taxes on the home, IBI included. The tenant can pay the community fee if the written contract states the yearly amount. Metered bills are always the tenant's.
| Cost | Who pays | Notes |
|---|---|---|
| Agency and contract | Landlord | Cannot be passed to the tenant |
| IBI (council tax) | Landlord | Cannot be passed on in new contracts |
| Community fee | Landlord, or tenant if agreed | Yearly amount written in the contract |
| Electricity, water, internet | Tenant | In the tenant's name or recharged |
| Small repairs | Tenant | Wear and tear from normal use |
| Necessary repairs | Landlord | 15 days to reply to a written request |
Ignore a written repair request for 15 days and the tenant can do the work and take the cost off the rent. Our guide to community fees in Spain explains what those fees cover.
How is long-term rental income taxed for UK owners?
Spain taxes the rent first, through non-resident income tax (IRNR). Since Brexit, a UK-resident owner pays 24 per cent on the gross rent, with no deduction for costs. Residents of the EU, Iceland, Norway and Liechtenstein, Irish owners included, pay 19 per cent on rent less related costs.
| UK resident | Irish (EU) resident | |
|---|---|---|
| Rate | 24 per cent | 19 per cent |
| Charged on | Gross rent | Rent less related costs |
| Rent of €900 x 12 = €10,800 (about £9,024) | Tax €2,592 (about £2,166) | With €3,000 of costs, tax €1,482 (about £1,238) |
| Spanish return | Form 210 | Form 210 |
The Irish example assumes €3,000 of costs such as IBI, community fees, insurance and depreciation. If you file one return for all the rent earned in 2026, form 210 is due between 1 and 20 April 2027, using the NIE you got when you bought.
UK residents also report the rent to HMRC on the foreign pages of Self Assessment. Under the UK-Spain tax treaty the UK then gives Foreign Tax Credit Relief, capped at the UK tax on that income. With 24 per cent on gross rent, a basic-rate taxpayer often owes HMRC nothing more but cannot use all the Spanish tax, while a higher-rate taxpayer may pay a top-up. From 6 April 2027 UK property income, which includes an overseas property business, is set to be taxed at 22, 42 and 47 per cent in England, Wales and Northern Ireland.
Irish residents declare the rent to Revenue, and the Ireland-Spain treaty sets how far Spanish tax reduces the Irish bill. Have an adviser check your figures, and see our guide to rental yield in Spain for what is left after costs.
What can you do if a tenant stops paying?
You can ask the court to end the contract and evict, but since 3 April 2025 you must first try to settle out of court, for example through mediation or a written offer. If the tenant is vulnerable with nowhere else to live, the court pauses the case for 2 months while the authorities find a home or pay the arrears. If they do neither, the authority takes over the debt and the lease carries on.
Ways to protect yourself:
- Check the tenant's income: an employment contract or tax return.
- Buy rent default insurance (seguro de impago) yourself, as you cannot make the tenant pay for it.
- Agree extra security of up to 2 months' rent.
- Have a lawyer draft the contract in Spanish, with an inventory and photos.
Long let or holiday let?
A long let needs no tourist licence, while a holiday let on the Costa Blanca does, as our guide to tourist licences in Alicante and the Costa Blanca explains. If you want weeks there yourself, a long let is the wrong model: the tenant has the home until the contract ends.
Frequently asked questions
Can I rent out my Spanish property long term if I live in the UK? Yes. Non-residents can let a Spanish home to a long-term tenant under the same tenancy law as Spanish landlords. You lodge the deposit with the region, file form 210 in Spain and pay 24 per cent on gross rent as a UK resident. You also report the rent to HMRC through Self Assessment.
How long are rental contracts in Spain? At least 5 years when the landlord is an individual and 7 years when it is a company, even if the contract says less. The tenant can leave after 6 months on 30 days' notice. After the minimum term, the lease renews yearly for up to 3 more years unless you give 4 months' notice.
What is the maximum rent increase in Spain in 2026? The yearly rise cannot exceed the IRAV index, 2.54 per cent for September 2026. For anniversaries up to 31 December 2027, the rise is capped at 2 per cent unless you and the tenant agree a new figure. The contract must allow rises, and you must give notice in writing.
How much deposit can a landlord ask for in Spain? One month's rent as the legal deposit, plus extra security of up to 2 months' rent on contracts of up to 5 or 7 years. On the Costa Blanca the deposit goes to the Generalitat Valenciana within a month of signing. You cannot require rent guarantee insurance from the tenant.
Can I let my Spanish home for just one year? Only as a temporary let (vivienda temporal): more than 31 days and normally no more than 12 months, for a tenant who is away from their main home for a real, provable reason such as work or study. The reason must be in the contract. Otherwise it counts as an ordinary 5-year lease.
Looking for a flat to let long term?
Tell us your budget, the town you have in mind and how long you want to let the home. We will help you find a flat that suits that plan and work through the numbers with you. We work with lawyers and banks and keep an eye on deadlines. Tripinvest ES is a licensed agency (RAICV 4221) with offices in Torrevieja and Calpe and a head office in London, and service is in English from the first call. Our clients don't pay us commission. Browse homes for sale in Torrevieja to see real prices.
General information as of 13 November 2026, not legal or tax advice.
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Sources
Last checked: November 2026
- BOE, Ley 29/1994 de Arrendamientos Urbanos, consolidated text updated 13 November 2026 (arts. 2, 9, 9 bis, 10, 11, 14, 18, 20, 21, 25, 36): boe.es (official)
- BOE, Real Decreto-ley 29/2026 of 6 October 2026 (arts. 3 to 5, final provisions five and six): boe.es (official)
- BOE, Congress resolution of 12 November 2026 validating Real Decreto-ley 29/2026: boe.es (official)
- BOE, Congress resolution of 12 November 2026 repealing Real Decreto-ley 28/2026: boe.es (official)
- BOE, Ley 12/2023 por el derecho a la vivienda (IRAV, stressed housing markets): boe.es (official)
- INE, IRAV methodology: ine.es (official)
- RTVC/EFE, IRAV for September 2026, 14 October 2026: rtvc.es
- BOE, Ley 8/2004 de la Vivienda de la Comunidad Valenciana, consolidated text (arts. 22, 68 and 71): boe.es (official)
- DOGV, Decreto 46/2022 of 29 April 2022 on lodging rental deposits (art. 3): dogv.gva.es (official)
- Generalitat Valenciana, Tesorería, rental deposits, forms 806 and 816: hisenda.gva.es (official)
- BOE, Ley Orgánica 1/2025 (art. 5, attempt to settle before going to court): boe.es (official)
- Agencia Tributaria, non-residents, income from let property (rates and deductible costs): sede.agenciatributaria.gob.es (official)
- Agencia Tributaria, Modelo 210 filing deadlines: sede.agenciatributaria.gob.es (official)
- GOV.UK, tax on foreign income, if you are taxed twice: gov.uk (official)
- GOV.UK, Income Tax: changes to tax rates for property, savings and dividend income: gov.uk (official)
- legislation.gov.uk, Income Tax (Trading and Other Income) Act 2005, section 265, overseas property business: legislation.gov.uk (official)
- GOV.UK, Spain tax treaties: gov.uk (official)
- Revenue (Ireland), foreign rental income and double taxation: revenue.ie (official)
- European Central Bank, euro reference rates, 13 November 2026 (€1 = £0.83559): ecb.europa.eu (official)
- Banner photo: Ximonic (Simo Räsänen), "Various residential buildings as seen from Calle Matilde Peñaranda in Nueva Torrevieja, Spain, 2022 January", CC BY-SA 4.0: commons.wikimedia.org
