The rental housing market in Spain operates under strict regulations that govern the termination of lease agreements, including procedures and deadlines. Many tenants are unaware that if they do not give timely notice of their intention to move out, their contract may be automatically renewed for several more years under the same conditions. This is a legal nuance that everyone should be aware of.
The main governing document in this area is the Urban Lease Act (LAU), in force since 1994 and supplemented by the recent Housing Law. According to this legislation, after signing a lease for the initially agreed period, tenants have the right to stay in the property for up to five years if the landlord is an individual, or up to seven years if the landlord is a legal entity. This extension is granted by default. The only way to avoid it is to notify the owner of your intention not to renew the lease at least thirty days before the contract’s expiration date.
When this initial mandatory period ends, a mechanism known in legislation as ‘tacit renewal’ comes into effect. In this case, if neither party expresses a desire to terminate the agreement, the contract is renewed on an annual basis, but for no more than three years. The law sets different notice periods: the landlord must give four months’ notice, while the tenant has two months. It is important that notice is given in writing and in a manner that allows confirmation of receipt, such as by registered mail or via burofax. Although the law does not prescribe a specific format, proof of sending and receipt is crucial. If both parties miss the deadlines, the contract is automatically extended for another year.
Recent legislative initiatives, particularly Law 12/2023 on the Right to Housing, have introduced new circumstances that increase the duration of rental agreements. For example, tenants who can demonstrate their economic or social vulnerability through social services are entitled to request an extraordinary one-year extension of the contract. This is possible if the property owner is a large landlord. During this additional year, all conditions of the original agreement remain unchanged.
Furthermore, if the property is located in an area officially designated as a stressed housing market, the tenant is entitled to an additional contract extension of up to three years, with annual renewals under the same conditions. This requirement is also mandatory for the property owner. Exceptions apply when the parties reach a new agreement, or if the owner declares the need to use the property for their own residence or for immediate family members, as provided for in Article 9.3 of the LAU.
Thanks to these changes, the current legal framework aims to balance the interests of both parties, bring greater stability and legal certainty to the rental market, and prevent conflicts arising from poor communication or lack of awareness about statutory procedures and deadlines.
