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Following up on our article Rental deposit scheme: how to get your deposit back, there has been a significant development in the region of Andalusia.
Without doubt, one of the biggest challenges tenants face in Spain when their tenancy agreement ends is the non-return of their security deposit (one month for long-term rentals and 2 months for short-term rentals).
From experience, I’d say 8 out of 10 deposits are not returned to tenants. In about half of the cases, there is actually a legitimate reason on why landlords do not refund it (i.e. damages to the property or extra cleaning necessary). In such cases, landlords may use all or part of the security deposit to repair or replace the damaged items. But they need to justify withholding the deposit by supplying VAT invoices. In the remaining four cases, landlords simply pocket this money for no good reason. This is particularly true of Spanish landlords who happen to know Spain’s laws thoroughly.
To avoid this landlord abuse, it was ruled that each autonomous region in Spain would create a specific official body whose purpose would be to collect said security deposit and refund it at the end of the tenancy agreement to the tenant, mirroring what other European countries already do. This has been an excellent idea, and it has served well throughout Spain, although not everyone follows it, out of ignorance. These official bodies, in most cases, accomplish their task well and do a great job of protecting tenants’ security deposits.
However, there has been a recent change in the autonomous region of Andalusia, possibly the largest region in all of Spain, and with a very busy tourist activity. Andalusia published a new law on December last year called Ley 5/2025, de 16 de diciembre, de Vivienda de Andalucía, which came into effect on the 24th of January 2026.
In its sixth additional disposition, it abolishes the public body in Andalusia whose sole purpose was to collect and safeguard tenants’ deposits. All existing security deposits will now be refunded to tenants.
I am aware that many people were not even aware this public organism existed in Andalusia (it was called AVRA gestión fianzas de alquiler).
Conclusion
From a Consumer Law perspective, this is a faux pas.
I find it a very bad idea whose main consequence will be to cease to protect tenants' rental deposits and will expose them to landlord abuse, particularly from Spanish landlords, who happen to know Spanish laws inside out.
If it was already fairly challenging to be refunded a security deposit when a rental contract came to an end, it will now be nigh impossible in Andalusia, requiring, in most cases, a court procedure.
However, in practice, landlords rely on the fact that most people are not willing to part with 3,000 euros, or more, in a protracted court case that may last years to pursue the refund of a rental security deposit, which is often for a smaller amount. Landlords are counting on this to pocket the deposit, as it happens already in many other parts of Spain. I’m all too familiar with tenants’ predicaments on this matter and get emailed on a weekly basis on this.
A side effect of this law will presumably be a moderate increase in litigation as a result of the elimination of this official regional body. I don’t expect a significant increase, because, as written, most tenants are unwilling to pay for a court case to recover a rental deposit that, in most cases, will be far less than the quoted legal fees.
Whilst it is my personal view that the government should hold off and try to intervene in the market as little as possible, streamlining and reducing all the associated red tape, in this particular instance, I believe that public administrations should go out of their way to ensure the safeguarding of tenants’ deposits for the overall good and efficiency of the rental market.
It is clear to me that one of the parties (the tenant) is weaker than the other (the landlord), who also happens to be in charge of drafting the rental agreement. To this end, public Authorities should step in resolutely and address this glaring imbalance decisively, by protecting the consumer rights of the weaker party, to help restore balance.
Related tax and legal services LNA offers:
- Rentals (contract drafting)
- Contracts (read & review)
- Litigation
- Tenant Eviction Service (non-paying tenants)
At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation all over Spain. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by email at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form.
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