Moving to Spain
Finding a property is most likely the primary concern for those relocating to Spain for retirement, education or employment. Usually, many questions arise regarding the property market, finding good rental housing, tenant rights in Spain and many other aspects of moving to Spain.
The increase in demand for housing, along with a limited supply, has caused housing prices to rise significantly. These prices are now 34% higher than they were during the 2007 housing market peak. In the past five years, the rate of price increases has sped up because there are fewer homes available, and more people want to live in them than ever before.
These figures may vary depending on the autonomous region (comunidad autónoma), with high-demand areas such as large cities or tourist destinations experiencing higher price increases than smaller towns or less populated areas.
As stipulated in Article 148.3 of the Spanish Constitution, all Autonomous Communities have full competence in matters of housing within their territory, which are regulated in their respective Statutes of Autonomy.high-demand areas such as large cities or tourist destinations experiencing higher price increases.
Buying vs. renting in Spain
There are no restrictions preventing foreigners from purchasing property in Spain, leading to many expats buying a home instead of renting. However, prospective buyers should note Spain's significant property gains tax, which can make purchasing a home less advisable as a short-term investment.
For those not planning an extended stay in Spain, renting a property in Spain might be the smarter move. Renting also offers an opportunity to familiarize yourself with the country before committing to a long-term relocation.
Renting a property in Spain
Compared to most other western European nations, Spain offers a relatively low-cost lifestyle. Nevertheless, rental expenses can consume a significant portion of a monthly income.
We are currently witnessing the largest increase in the rental market in the history of Spain, with housing rental prices rising significantly in recent years.
Over the last 10 years, rental prices have increased by approximately 78%. Over the last 5 years, the increase has been around 24%.
The typical renter profile in Spain often consists of young adults and the majority of Spanish homes are situated in apartment blocks or similar buildings. Traditionally, property owners would manage their rentals themselves, however, recently it is becoming more common to see professionals and companies renting out their own properties or handling the rental for the property owners as intermediaries
In 2022 the Spanish Government approved the Ley por el derecho a la vivienda (Right to Housing Law). This law regulates the basic conditions to guarantee the right to decent and adequate housing in Spain. This law seeks to improve protection in the process to purchase and rent property in Spain, regulate public housing and promote affordable housing, especially for young people and vulnerable groups.
Popular places to rent in Spain
The locations with the highest demand for rentals in Spain are large cities, mainly Madrid, Barcelona, Valencia and other regional capitals, as well as their surrounding areas. In addition, the Mediterranean coastal areas like Costa Blanca, Costa del Sol and Costa Cálida are very popular with tourists, even throughout the year.
As is common in large cities, Madrid’s rental properties are predominantly found in multi-household buildings. Madrid's rental cost ranks among Spain's highest but varies based on neighborhood.
Rental prices in Barcelona exceed those in many other Spanish cities. Yet, the costs remain lower compared to other major European destinations. Renting in smaller towns just outside Barcelona can help you save money while still being close to the city and enjoying its multitude of advantages.
Madrid, Barcelona, Valencia, Sevilla, Bilbao and all other cities in Spain are considered safe places with a good standard of living.
Valencia is the third largest city in Spain with a population of 825,948 inhabitants, surpassed only by Madrid and Barcelona.
The cost of renting in Valencia is quite lower than in Madrid and Barcelona and, just like in the other cities, properties outside the city center will help you save several hundred euros per month.
Population by major city in Spain (January 2025):
City | Region | Population |
Madrid | Comunidad de Madrid | 3.422.416 |
Barcelona | Cataluña | 1.686.208 |
Valencia | Comunidad Valenciana | 824.340 |
Zaragoza | Aragón | 691.037 |
Sevilla | Andalucía | 686.741 |
Málaga | Andalucía | 574.654 |
Murcia | Región de Murcia | 459.403 |
Palma de Mallorca | Islas Baleares | 416.065 |
Las Palmas de Gran Canaria | Islas Canarias | 379.925 |
Alicante | Comunidad Valenciana | 352.889 |
Bilbao | Pais Vasco | 346.903 |
Córdoba | Andalucía | 325.701 |
Types of property to rent in Spain
While searching for properties to rent in Spain, you will find four primary types:
- Apartment or flat (piso) – The main rental option in Spain's major cities. These vary in size from small studio apartments to two-story duplexes (maisonettes) and luxury penthouses.
- Terraced or semi-detached house (casa adosada or semi adosada) - They can be of different types: single-storey bungalows on the ground floor with or without neighbours above, upper-storey bungalows or duplexes (maisonettes). They are usually found on the outskirts of cities and in residential developments, often have communal outdoor areas and, especially in tourist areas, a communal swimming pool.
- Villa – Detached houses more frequently found in coastal towns, often serving as second homes for Spaniards or holiday residences for foreigners. Villas might belong to a residential complex with communal pools and amenities, or include private pools and gardens.
Farmhouses or estates (casa rural/finca) – Suited for those desiring life in the Spanish countryside. As rural property is considerably more affordable than in cities and coastal resorts, you might find large rental homes with ample outdoor space.
Properties are usually described as either furnished or unfurnished. 'Furnished' (amueblado) can be interpreted loosely in Spain, so it's highly recommended to ask about specific appliances and furniture before signing a rental agreement. An 'unfurnished' (sin amueblar) property listing might mean it lacks any appliances.
Finding a place to rent in Spain
Similar to other countries, the usual methods for finding a house or apartment to rent in Spain include working with an estate agent (inmobiliaria), browsing online property portals, reaching out to your personal network, and checking social media groups. You might also see properties listed on real estate websites based in other countries, although these usually target tourists and tend to be more expensive.
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Online rental portals
In Spain, there are many online rental portals to choose from. If you are unfamiliar with the area where you wish to rent a property, it is advisable to consult nationally recognised portals for greater reliability and to avoid potential fraud. Be wary of advertisements that seem too good to be true. Furthermore, never send money in advance to anyone without a written contract.
There are many websites to choose from where you can find properties to rent in Spain. However, if you aren’t familiar with the area where you would like to rent a property, it would be best to work with a real estate agent who will be able to recommend the best areas based on your needs and preferences.
Always be wary of deals and advertisements that seem too good to be true, never send money in advance without a written contract and always view the property (either online or in person) before committing to renting a property.
Here are the most widely used websites to find properties to rent in Spain:
Student accommodation in Spain
Typically, Spanish universities offer student accommodation in student residence halls (Colegios Mayores) or student apartments. Costs depend on the accommodation's location and amenities.
However, some direct enrollment programs require students to find their own places to stay during their studies in Spain. If this applies to you, begin your search for a rental property as early as possible. On top of the ones listed above, check out the following websites:
How to rent a property in Spain
Rental contracts and requirements for foreigners and Spanish citizens are basically the same. The only difference is the personal documentation that the tenant must provide. Foreigners are required to have a NIE (foreigner identification number), however, if they do not have one, they may sign a rental contract with their passport.
This is a list of requirements and documents necessary to rent a property in Spain as a foreigner:
- NIE or passport
- Proof of income
- Bank account in Spain
The NIE number (foreigner identification number) is an essential document for any foreigner who wants to live or work in Spain. If you do not have a NIE number, you will need to apply for one at the Foreigners' Office in your province.
The landlord of the property you want to rent will want to make sure you have enough income to pay the rent. If you have an employment contract, you can provide a copy stamped and signed by your employer. If you are a student, you can provide a certificate of enrolment and you will probably need to have someone be your guarantor.
The landlord can take out rent default insurance to guarantee that they are covered for a few months if the tenant does not pay rent. To do this, the insurance company asks the tenant to meet certain requirements and provide the documentation to prove their income.
You will need to have a Spanish bank account to pay the rent if you agree to pay by bank transfer or direct debit (which is the most common approach), as well as utility bills. In some cases, international bank accounts may be accepted, but it is advisable to have a Spanish bank account.
Guarantee and deposit
There are many issues to be aware of before signing a rental contract. One of the most common questions is what is the difference between a guarantee and a security deposit in a contract.
The main difference is that the guarantee is mandatory, as it is regulated by Article 36 of the Urban Leasehold Law (Ley de Arrendamientos Urbanos LAU), and serves as an additional guarantee for the landlord. On the other hand, the security deposit is an additional and optional guarantee that the landlord may request when renting out his property and can be used to cover any damage or unpaid rent. It is not mandatory, but it is legal to request it, however, it must be agreed in the rental contract.
The law stipulates that the equivalent of one month's rent must be paid as a guarantee deposit for residential rental contracts. For commercial rental contracts, two months' rent must be paid.
When is the security deposit for a rental returned?
The guarantee, like the security deposit, is returned once the rental contract has ended and it has been verified that everything is in order, that there are no outstanding debts, no damage to the property has been done (other than that which is caused by normal use of the property), etc.
The landlord has 30 days to inspect the property and return the deposit, provided that no damage has been caused. If the landlord does not do so, they will need to return the deposit and additional late payment interest based on the amount.
Agents' fees
When finding a rental property in Spain via an estate agent, be aware that landlords must cover their fees. It is strictly forbidden for real estate agencies to charge the tenant for their fees as stipulated in article XX of LAU Real estate agent fees are usually a fixed fee or a percentage of the monthly rent, normally a full month's rent.
Other costs
When searching for a property to rent in Spain through a real estate agency, if you specifically ask them to find you a property, you will need to agree on their terms of service, which could mean you need to pay for certain specific services provided by the company based on your needs, such as translation of documents, changing utility bills, etc.
Utilities and bills
Utilities are not usually included in your long-term rental contract in Spain, which means you will need to pay for them separately. This also means you can choose your own provider and change existing utility bills and contracts to your name. Although more and more homes are installing solar panels, it is still not common, especially in rental properties.
Energy providers can be chosen from the free market (mercado libre) or the regulated market (mercado regulado). If uncertain about local options, search online, ask in local expat forums, or contact providers directly. Some examples of generally available electricity suppliers are:
You also have quite a few options for setting up telephone, internet, or television services.The leading telecommunications providers in Spain are:
Landlord rights and obligations
Spanish housing legislation protects tenants and their rights. For example, the landlord is responsible for necessary repairs to maintain the home's habitability. If this obligation isn't met, or if the landlord causes disturbances, you have the right to terminate the contract. Additionally, landlords cannot enter the property without providing notice and obtaining the tenant’s permission.
On the other hand, the landlord has the right to terminate your contract when the rent or the deposit is not paid for unauthorized subletting or breaching any of the agreements in the rental contract. Damaging the property, making excessive noise, or conducting illegal activities in the property are reasons for the landlord to evict the tenant. This will require the landlord to file a lawsuit to force the tenant to leave the property.
Moving in and out in Spain
Before moving into a property in Spain, check the property for any pre-existing issues and let the landlord know. If possible, take pictures and inform the landlord to make sure you are not held responsible when leaving the property.
When you intend to move out, you will need to notify the landlord at least 30 days in advance. For contracts that are between 5 and 7 years long, you will need to notify 2 months in advance. Make sure you provide notice well in advance and receive confirmation of the notice in writing.
Before leaving the property, ask for a property inspection from your landlord or property manager. This will give you the chance to address any issues and understand any necessary repairs for a full deposit refund. For example, if you've painted walls or installed shelves, you might need to restore the property to its original state.
The deposit must be returned by the landlord within 30 days of your departure. However, they can claim the necessary part of the deposit to cover any repairs to the property damaged by the tenant.Third-party mediation is available for deposit return disputes.
If you disagree with your landlord, consult a lawyer as soon as possible to either reach an agreement or weigh your options.
Renting out your home in Spain
Rental properties are subject to strict regulations in Spain, with laws that vary based on location and rental duration. If you rent out your property, you must declare the rental income in your Spanish tax declarations. Non-residents must report rental income every quarter.
Before listing your property for short-term or vacation rental, check local regulations to prevent hefty fines. Your initial contact should be the local tourism authorities, and obtaining an official license is generally required. Your property must also meet specific technical and safety standards, including an energy performance certificate (Certificado de Eficiencia Energética CEE), mandatory for all Spanish rental properties. Some regions may restrict the maximum number of days per year your property can be rented to visitors.
Renting your property long-term limits your access and ability to sell. As a landlord, eviction is permissible only for non-payment of rent, property damage, contract expiration, absence of a contract (desahucio por precario), squatting, or illegal tenant activities.
Rental disputes are typically handled by civil courts (juzgados de primera instancia). Engaging a Spanish lawyer is usually necessary to navigate the legal procedures. Spanish insurance policies are available covering tenant-caused damages, non-payment (seguro de impago de alquiler), and even civil litigation costs.
Tips for renters in Spain
These are the most important tips when renting a property in Spain:
- Make sure you can view a property before paying a deposit.
- Use the official property registration website (registradores.org) to confirm the person renting the property is the legal owner.
- Understand what the rental fee covers, such as utilities, furniture, and appliances.
- Receive your rental contract in writing, read and fully understand all terms and conditions. Watch out for potentially abusive clauses and if in doubt, contact a solicitor.
- Confirm your deposit will be handled appropriately, as mandated by Spanish law.
- Before moving in, inspect the property review any existing damage, take pictures and inform the landlord.
- Protect your personal belongings with insurance.
- Request a property inspection before moving out to facilitate the full return of your deposit