Renting In Spain [A Detailed 2023 Guide In English]
Looking for a suitable place to live is one of the first things you will do whenever you are moving to a new place. A lot of expats rent when they first arrive in Spain, with some choosing to buy property later on if they are here for a long time. If you are new to the country, there are a few details you should remember to avoid being scammed or facing unnecessary worry.
This guide will give you all the necessary information on what you should be careful about and all the helpful tricks you should know.
Is It Better To Rent Or Buy In Spain?
Given the cost of living in Spain, both buying and renting are not excessively expensive as in some other parts of the world. The government also gives some incentives to foreigners looking to invest in the country. If you are considering staying in the country for the long run or settling here permanently, you can look into buying property.
However, if you have not finalized your plans yet and want a little more flexibility, renting is definitely the more favorable option. For instance, if you are studying or open to switching jobs, which means that you would be willing to relocate, you should rent so that you can move depending on your needs. It is also better than buying if you are waiting to see what living in the country is like before you commit to anything more permanent. With renting, you have fewer strings attached to your stay. So you can try renting for say, a year in a neighborhood of your choosing to see if you wish to settle here permanently and if this is the best place for you and your family.
Moreover, buying could be more expensive than you originally anticipated. This is because on top of the listed price, there are other fees that will be levied. The capital gains tax is also high in Spain. You can expect the total of all taxes and fees charged to be between 10 to 15% of the listed price, so take that into consideration.
8 Peculiarities About Spanish Apartments For Rent
The Minimum Time Period
Bear in mind that the minimum time that you can rent a flat or apartment is from six months to a year, and depends on your landlord. For the most part, landlords will accept a minimum of a year. You will also need to pay one or two months’ rent as deposit along with the first month’s rent in advance.
Utilities Will Be Separate
For a lot of the properties that you rent in Spain, the rental cost will not include utility bills. That is, you will need to pay your water, electricity and internet bills separately. If you are sharing a flat with multiple people, the standard thing to do would be to divide the bills for each of the tenants. You might also have to pay what is called the community expense. Suppose the place where you live has common facilities like swimming pools or parks. These will need to be maintained regularly, and the maintenance costs are shared by all of the neighbors who have access to these facilities.
But you do not need to worry excessively about this. You can go ahead and try negotiating with your landlord about this aspect. Chances are, with some convincing they might include some of the utilities in your rental contract.
Entry Deposit
The first thing to do before entering the property is to pay the fianza or the entry deposit. If you are in direct contact with the owner, this will usually be a month’s rent as a deposit and a month’s rent in advance. If you found a place using an agency’s services, the initial deposit will cost you much more. You will need to pay a month’s rent to the agency as commission, a month’s rent as a deposit and a month’s rent in advance.
Look Carefully Who You Will Be Dealing With
Whenever you see an ad for a rental property, make sure you read it carefully to see who you will be dealing with. The person responsible for handling the property listing could be the landlord themselves, a real estate agent, the last tenant who was living on the property, or a current tenant with whom you will be sharing the flat. Dealing with each will require slightly different tactics, so it is best to be informed before you start the negotiations.
Definition Of A Room
You will find plenty of options in apartment sizes when you go out into the market. You should remember that the kitchen or bathrooms do not count as separate rooms in advertisements. Therefore, if an ad says 2 room apartment, this means it has 2 bedrooms.
You Can Sign A Long Term Or A Seasonal Contract
If you sign a long term agreement with a landlord, they will be obligated to give you extensions under the Urban Lettings Act. This act was designed to protect people who rent their homes. The extension stipulates that once a tenant has stayed in the property for a year, the landlord will be obligated to give them a five year extension on their contract. This is independent of the period first agreed upon in the original contract. The other type is a seasonal contract which is not bound by such obligations. You will be required to vacate the property at the end of the contract period. Short-term contracts are also heavily regulated by the government and require you to obtain a special license. Both types of contracts are not defined by the initial rental period agreed between the two parties i.e. a contract can be for two years and still be seasonal.
Rent Amount
Once you pay the rent, your landlord will send you a written receipt, unless you pay through other means like a wire transfer where you’ll receive its own proof. For the first five years, the rent will be increased or decreased depending on that year’s consumer price index (which is a measure of inflation). After that there is no obligation to adhere to any such measure and the tenant and landlord will need to mutually agree on an amount acceptable to both.
Sale Of The Property
If the landlord is selling the property, they should inform the tenant first. Moreover, they are obliged to offer the sale to the tenant first before anyone else, who will have 30 days to reply to the offer. If the landlord does not do this or if the property is sold for lesser than the offered price, the tenant can have the sale annulled and purchase the property themselves for the price that is declared in the sales deed. This must be done within one month of the original sale. As a tenant you also have the option to surrender your pre-emption rights.
How Much Is Rent In Spain?
The rental prices in Spain are not within a small range and vary a great deal. The city in which you rent, location within the city (i.e. close to the center or periphery), flat size, proximity to public transport options, interior or exterior position (that is, if a flat faces the street or not) are all factors that will impact the rent charged.
The average rent in Spain is somewhere around 600 euros. In bigger cities like Madrid, Barcelona or Valencia you should expect to pay anywhere from 800 to 1200 euros for a two or three bedroom apartment. In the heart of the city, apartment sizes will likely be smaller. So if you are looking for places with more room or cheaper options, you can find those in places away from the city centers and close to peripheral areas. Places like Granada, Malaga or Almeria will have more affordable options. If you are sharing a flat or renting a one-bedroom apartment only, you might be able to find options within the 500 to 900 euros range.
If you wish to compare, you will find that rent in Spain is almost 50% cheaper than it is in the United States. This corresponds with the cost of living in Spain, which is lower than in most other places in Western Europe and the United States. On the other hand, buying property in Spain is a more expensive proposition. It will cost you around 150,000 euros, which translates to an average square meter price of 1600 euros.
How To Find An Apartment In Spain
There are several avenues that you can use to find a property to rent in Spain. The most basic is to find an area that seems suitable to you and just walk down the street in search of billboards that announce that an apartment or flat is available for rent there. This method does not require any intermediaries and you will need to do all the research yourself. You will usually see a red or orange board saying ‘se alquila’ along with the phone number of the landlord who you can contact. If you like the apartment, just call the person directly and ask them for additional information.
Another option is to go through a real estate agency. Look for companies that are accredited and registered with Spain’s Official School of Estate Agents. Some popular ones include Engel & Volkers, Kyero and Lusa Realty. This might make the entire process slightly easier for you since these agencies have lots of property listings. You just need to let them know your requirements and they will shortlist options for you. On the downside, they will also charge you a commission for their service, which can sometimes be in the form of an extra rental month payment or a percentage of your rent each month. So if you are looking to save money, contact the landlord directly and skip the agencies.
Finally, if you cannot physically visit neighborhoods, search online portals for the best properties. Some popular ones include Idealista, Fotocasa, Habitaclia and Servihabitat. Searching multiple websites will help you cover almost all of the possible options in any area so this should be good to go. But a word of caution: real estate agencies have been shifting to these platforms as well. So if you want to find a landlord here, you have your work cut out for you.
Documents Needed For Renting In Spain
There are some documents that are required and essential in all cases. However, some landlords might ask for additional documentation as well. Generally, these include the following:
- Proof of employment to signal your ability to pay rent regularly (you will usually need to provide the last three months’ pay slips)
- Personal identification like the passport
- Proof of your residency status
- Personal character references
- Tax identification number
If you have not started working yet or cannot provide proof that you will be able to make the payments on time, there are several options available to you. You can either make a substantial deposit like pay six months’ rent or get a guarantor who will sign a legal agreement to pay in case you are unable to. The third option is to use any property you own as a backup or get a bank guarantee that will make the payments instead if you default.
6 Tips For Applying For An Apartment For Rent In Spain
Browse Multiple Options
You should always have shortlisted at least two to three options for places you wish to rent. This is because you never know if an apartment goes off the market just before you see it, or if you see something unexpected that is not to your liking. Having multiple options will make sure you can fall back on another choice in case your first preference doesn’t work out for you.
Don’t Send In Any Payments Beforehand
To avoid getting scammed, the first thing you should do when you like a property is to go and see it in person. If you absolutely cannot do this, arrange to see it online on Zoom or Skype. As an expat especially, you might be more susceptible to being scammed and tricked into rental agreements. Be sure to visit and meet the owner in person. Once you have personally verified all the details, only then should you aim to send in any payments to the owner.
Be Decisive And Quick
Since the rental market is competitive, things will likely move very fast. In some cases, the landlord could even ask you to pay the deposit on the same day that you visit! If not, then they will at least expect a response about whether you like the apartment. So be ready to quickly make up your mind and let them know.
Have Everything In Writing
This is an essential step, though one that some people might think is too small to take note of. Make sure that all parts of the agreement are in writing; do not accept a verbal agreement. And once a contract has been drawn up, read it carefully before you sign it in case there is something there that might go against your interests. In addition to the rental agreement, you should also make sure that if you make any payments, you keep a record of them to avoid any unpleasant misunderstandings later on.
Check If You Are Allowed To Make Changes To The Place
When looking for a place to rent, be sure to check how many things you can modify. For instance, you should ask the landlord if you will be allowed to redecorate or repair the place if needed. In case of emergencies too, like a broken broiler or a leaking ceiling, the way forward should be clarified e.g. if you should contact the landlord directly.
Verify The Owner Of The Property
You can also use a property registration website if you want to verify who the owner is. Make sure you are signing a rental agreement with the owner and it is not someone else who is subletting without the owner’s knowledge and hence committing fraud.
What Does A Spanish Rental Contract Contain?
There are several items that a contract is legally required to have. These include:
- The identification details of the tenant and landlord
- Description and address of the apartment or property
- Contract term i.e. how long the tenant can stay at the property
- Rent amount and terms for payment
- Details of expenses incurred on the property and who will be responsible for paying them
- Any terms or penalties for late payment
The last few are not always required, but good to have so that everything is pre-specified and you do not get into disagreements later on. You can also include any other legal provisions that both parties mutually agree to. This agreement can be made before a notary and then recorded at the Spanish Land Registry (Registro de la Propiedad).
6 Things To Take Care Of After You Move In
Take Pictures Of The State Of The Apartment
Once you have finalized your contract and you move in, you should take pictures and document the state of everything in the apartment. See if there are any imperfections or if something like a light in the apartment is not working. This will prove to be useful when you decide to move out. You can request an inspection of anything that might be damaged in the entire flat at that time. Since you will have the initial state documented with you, this will make the entire process easier for both parties. You would not lose any part of the deposit if you did not cause the damages.
Register Your Address
Once you have moved into a new place, you will need to register your address and get the empadronamiendo. This is necessary for a number of other bureaucratic procedures in Spain. If you are coming to Spain for the first time, you will simply need to register with the local municipal authority. If you were already living here and are now making a move, you can register in your new locality and they will automatically inform the old municipal authority who will then cancel your registration from their records before shifting it to the new address.
Get Your Name Displayed On The Doorbell
Another important thing to do, though one that might often get ignored, is to get your name on the doorbell. This will make it easier for anyone to locate you, and for official documentation and mail to reach you at your new address. You can check if your landlord will do this for you or you need to take care of it yourself.
Be Punctual With Rent Payments
There are several legal protections for landlords and tenants both in Spain. One such law guarantees that the landlord will receive their rent on time. If you are late with your payments, and haven’t made them before the 7th of the month, a house owner can take you to court and request the money. The process is usually quick, resolving within two weeks and they can even claim this amount without a lawyer. So be sure to make the rent payments on time.
Consider Getting Insurance
This is not something that is required by law. But in order to protect your belongings, consider getting renter’s insurance. This will give you cover for your personal property even if you are living in a rented house. It protects against fire or water damage. At additional cost, you can also get cover for theft and vandalism.
What To Do If I Have Trouble Paying Rent?
In case you are unable to make the monthly rent payments, you can consider meeting with the local housing authorities for possible options. Sometimes these departments will offer subsidies or assistance with payments. Under recent reforms, Spain has committed to providing rental assistance to young individuals between the ages of 18 and 35 who are making less than 23,725 euros a year. You will be able to receive 250 euros per month for up to two years if you qualify for such a scheme.
Important Spanish Vocabulary For Renting In Spain
fianza – entry deposit
contrato de arrendamiento – lease agreement
contrato de arrendamiento de vivienda – long term agreement
contrato de arrendamiento de temporada – seasonal contract
arrendador – landlord
arrendatario – tenant
Registro de la Propiedad – Spanish Land Registry
derecho de tanteo – right of pre-emption (for the tenant if the landlord is selling their property)
immobiliarias – estate agent
procedimiento civil ordinario – ordinary civil proceedings
compartir – to share i.e. share a flat
la habitacion/la pieza/el cuarto – rooms
la sala – living room
la cocina – the kitchen
locales o naves – commercial lettings
piso – apartment or flat
casa adosa – townhouse
edificio de apartamentos – apartment building
colegios mayors – student residence halls
reformado/rehabilitado – to describe a renovated property
con/sin ascensor – with/without elevator
reembolsar – to refund
incluido – included
amueblado – furnished
amplio – spacious
bien situado – conveniently located
seguro para inquillinos – renter’s insurance
desocupar – to vacate
fiador – guarantor
aparcamiento – car parking
Final Thoughts
Finding your new home is a mammoth task and probably one of the most important things you will need to do when you move to Spain. This guide gave you some tips to better negotiate with people in the housing market and all that you should know to protect your interests. Now that you have all this information, you can go ahead and start searching for the right fit for you. Happy apartment hunting!