In the dynamic real estate market, the minimum duration of rental contracts is a crucial issue for both tenants and landlords. Understanding the rules and regulations is essential to avoid misunderstandings and ensure a fair and legal agreement. A seasonal rental is not the same as a residential or commercial lease.
In this article, we explain the maximum and minimum duration of rental contracts in Spain.
How long does a rental contract last in Spain?
Before drawing up a rental contract, the rental period should be fixed. The rental contract duration for a regular residential property is usually one year, which can be extended to five years.
For contracts with a term of fewer than five years (or seven years if the landlord is a legal entity) when the contract expires, the contract must be extended annually until the rental period reaches a minimum of five or seven years.
So, can you rent a flat for less than five years? The answer to this question is yes. The tenant and the landlord can freely agree on the lease duration, but if it is less than five years, it can be extended.
The rental contract is extended another three years
After this period, for all rental contracts signed since March 2019, the latest Law on Urban Leases (LAU) reform sets a tactical extension of three years for individuals, unless one of the parties states they do not wish to renew the contract.
How long is a temporary rental contract in Spain?
Temporary or seasonal rental is the renting of a house that is not intended to be the tenant's permanent home but is used to cover a specific need, such as a work contract or a course, etc.
Seasonal rental contracts are regulated, in the first instance, by what is agreed between the landlord and the tenant. The LAU only upholds the obligation to provide a security deposit, but the parties are free to agree on the rent, duration, the possibility of extension, etc. In contrast to "standard" rental agreements, there is no minimum and maximum duration.
Minimum duration of rental contracts in Spain
According to Article 9 of the Law on Urban Leases (LAU), "the minimum duration (the general duration) of a rental contract may be freely agreed by the parties. However, if it is less than five years (less than seven years if the lessor is a legal entity) when the contract expires, it will be extended annually until the lease reaches a minimum duration of five years (seven years if the lessor is a legal entity)".
The tenant can terminate the tenancy after six months
At least six months after signing the rental contract, the tenant has the option to terminate it. To do so, the tenant must give the landlord at least one month's notice and, depending on what has been agreed, some kind of compensation would have to be paid to the landlord. On the other hand, if the tenant waits one year after signing and the notice period is complied with, there would be no penalty.
New developments with the new Housing Law
With the new Housing Law coming into force in Spain, according to Article 10 of the LAU, the rental contract for a regular property must be extended, at the request of the tenant, by one year, as long as the tenant can prove that they are in a situation of social and economic vulnerability.
On the other hand, if the house is located in an area classified as being under stress, the tenant may request that, once the extension period is over, the contract be extended for a maximum period of three years. The request for an extraordinary extension must be accepted by the landlord unless the exceptions set out in Article 10.3 of the LAU are met.
The owner needs to recover the rental property
Once the first year of the contract has expired and provided that the landlord is a legal person, the compulsory extension of the contract does not apply if, at the time of signing the contract, explicit evidence has been given that the owner needs to occupy the property before the end of the five years.
This may be because they need it for permanent residence for themselves, for their first-degree relatives by blood or adoption, as well as for their spouse in the case of a final separation, divorce or annulment of marriage. For this purpose, at least two months' notification must be given before they will need the property.
The rental contract and its extensions
Once the rental contract has expired, it can be extended annually up to a maximum of three years, unless the landlord gives four months‘ notice of non-renewal or the tenant gives two months’ notice.
In other words, if the landlord and the tenant do not give notice of non-extension, the lease will, by law, be automatically extended for one-year terms. In addition, the extension of a rental contract under tacit renewal can be for one month, but there must be a written record of this condition.
Booking removes 4,000 Spain holiday rentals to comply with consumer laws
Booking.com has removed 4,093 tourist accommodation listings in Spain, most of which were in the Canary Islands, following a request from the Ministry of Social Rights, Consumption and the 2030 Agenda.
Andalusia to create police force to inspect illegal tourist flats
The President of the Andalusian Regional Government, Juanma Moreno, has announced the creation of the "Titan Group," a unit within the national police dedicated to monitoring and inspecting illegal tourist accommodation.
Could holiday rentals disappear in Spain?
Barcelona Mayor Jaume Collboni has announced that the city will withdraw all 10,101 tourist accommodation licences by November 2028. The aim, according to the city council, is to free up homes for residential use and improve access to housing. However, the measure has sparked swift backlash from the sector, which sees it as a blow to a well-established economic model.
Country houses exempt from Spain's new tourist rental register
Rural houses already registered on regional tourism registries are exempt from the new Single Register of Short-Term Rentals starting 1 July. This was confirmed by the Spanish Rural Tourism Association (Asetur) after meetings with the Ministry of Housing and Urban Agenda.
Spain’s new short-term rental registry explained
Spain has introduced a new short-term rental registry to regulate tourist accommodations. Property owners must now register rentals with regional authorities, ensuring compliance with safety and zoning rules. The move aims to improve oversight, combat illegal listings, and protect long-term housing availability for residents.
How does the CPI affect rent updates in Spain in 2025?
Article 18 of the Spanish Urban Leases Act (LAU) outlines, among other provisions, the procedure for updating a property's rent. Although the LAU states that, in the absence of a specified index, the Competitiveness Guarantee Index (IGC in Spanish) will apply, the most commonly used benchmark for rent adjustments is the Consumer Price Index (CPI).
Renting a room in Madrid: costs and insider tips
Opting for a room in a shared apartment goes miles beyond saving money by splitting rent and bills. With the rising rental prices in Madrid, coliving is part housing solution, part social adventure—an experience as unpredictable as the city itself. You’ll cross paths with people you might never otherwise meet—future best mates, language partners, or even just expert locals who know the best menú del día spots.