Renting to a foreigner is essentially the same as renting to a Spanish citizen. However, you should consider some points and request certain documents to ensure an efficient rental agreement. What do you need? What documents are required? In this article, we explain how to rent to a foreigner.
What documents should I ask a foreign tenant for?
Before drafting the rental agreement, you should ensure that the foreign national has the documentation they need to be able to reside in Spain legally. European Union citizens do not need a work or residence permit to live in Spain, but citizens of other countries may require a visa or residence permit. Ask the tenant to provide copies of their passport, identity number of foreign nationals (NIE) or visa and any other documents that support their legal status in Spain.
NIE or passport
Renting a property to a foreign tenant involves obtaining certain essential documents to guarantee a secure transaction. Primarily, you must request their identity number for foreign nationals (NIE) or, in its absence, the tenant's passport, as these documents accredit their entry into the country and act as proof of identity.
- Credit check
Many landlords like to ensure that potential tenants are creditworthy – regardless of whether they are foreign or not – to safeguard the rent. They, therefore, usually ask for documents that prove their financial situation, such as a work contract (a permanent one is always more valuable than a temporary one), last pay slips, last income tax return (or the equivalent in their country), quarterly VAT and income tax returns, etc.
If you have taken out tenant default insurance, the insurance company will usually obtain all the necessary documents and conduct the solvency analysis.
Deposit
By law, landlords must ask for a one-month deposit from the tenant. This is stated in Article 36 of the Urban Leases Law (LAU) and is compulsory for both foreign and national tenants.
Spanish bank account
Foreign tenants must have a Spanish bank account to pay the utility bills and the rent.
Can I rent a flat to an undocumented immigrant?
Yes, you can rent a flat to someone without papers or a residence permit in Spain. Currently, the regulations do not prohibit this practice, so you can rent to a person who does not have legal residence in Spain. Having a rental agreement can be beneficial for foreigners. It could help them complete administrative procedures, such as registering on the census.
However, remember that if the tenant does not have a Spanish identity card (DNI) or identity number for foreign nationals (NIE), they must provide a valid passport. This document is crucial to confirm their identity and legal status in the country. Therefore, even if a residence permit is not required to rent a property, the tenant must have a valid form of identification.
How do I rent to a foreigner?
A detailed rental agreement – including the tenancy terms and conditions – is essential. This agreement should include information such as the length of the tenancy, the price, the payment method, the tenant's and landlord's responsibilities, and any other relevant clauses.
The agreement must be written in Spanish and, if necessary, in the tenant's language. In summary, you should follow the steps and regulations of the LAU when renting to a foreigner; only some of the documents to be required vary, such as the NIE.
Model rental agreement for foreigners
A rental agreement for foreigners is essentially the same as what you would sign with a Spanish national. The only difference is that a NIE or passport number is used as the tenant's identity number. On idealista, you can find rental contract templates for foreigners in Word and PDF.
How much should the tenant earn to rent to them?
Insurers and landlords use the following guideline: rent should not exceed 30-40% of the tenant's monthly income, including salary and other income. As such, someone who earns €1,000 per month, should pay between €300 and €400 in rent, which is somewhat unusual in Spain. However, if two people live together, the combined salaries should be considered.
This rule is based on the idea that the tenant should have enough financial leeway after paying the rent to meet their other expenses and needs. If the rent is too high a percentage of the tenant's monthly income, the tenant may find it difficult to cover other costs and eventually compromise paying the rent.
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