Legal Questions

Tenant

Do I have to pay taxes when renting a property in Spain?

In Spain, the tenant of a property as a natural person, i.e. private citizen, has not to pay any taxes on the rent. But in the contract might be fixed, that the tenant has to pay fees according to the applicable local tax laws, such as the property tax or the annual fee for waste collection. But this is different if the tenant of the rental property has his residence for tax purposes in Spain.

Do I need a Spanish bank account?

This is not required. However, it is advisable for practical reasons, to open a bank account at a Spanish bank to debit directly the rental, the additional costs and all expenses arising from the rental to this account.

Is it necessary that I apply for a NIE number?

This is not essential for signing a private rental contract. However, all foreign natural persons who meet in Spain an activity of economic importance have to be registered with the Spanish public administration and apply accordingly for a NIE number (Identificación de Extranjero). During the contractual term of the rental contract, it may be necessary to show to the Spanish authority the NIE number when you apply for the supply, such as water or electricity, or when you need to register or to port the supply.

What happens if I need to cancel the Rental Agreement before the contract expiry date?

The rental contract usually includes a specific clause, which defines the end of the rental period to a specified date and the related notice period. In this case, all outstanding payments and expenses incurred up to the specified expiry date have to be compensated by the tenant. If the contract does not contain this clause, the locally applicable rental law (Ley de Arrendamientos Urbanos) determines that an earlier termination can be done legally only after the expired minimum period settled in the contract. The non conformity with the prescribed time limit may have the effect that the owner / landlord can request the full payment of rent arrears for the entire contract period up to the date the contract ends.

What is the difference between a main residence contract and temporary contract?

The difference between a rental contract for a main residence and a fixed-term lease is based on the fact whether the tenant uses the property as a permanent habitual residence or only as a temporary residence. The general legislation for the rental of apartments rather protects the tenants, especially regarding the use of the rental property. However in case of temporary leases for fixed-term periods or seasons (winter, summer, etc..) or periods of less than one year, the tenants rights are less protected, as in this case the parties are authorized to add or to exclude contractually specific paragraphs determined by the locally applicable rental law (Ley de Arrendamientos Urbanos).