In Spain, rent-to-own housing is becoming increasingly popular, especially among those not ready to commit to buying property upfront. This arrangement allows tenants not only to live in the apartment but also to gradually save for a future purchase. Part of the monthly payments can be credited toward the property’s price if the tenant decides to exercise the right to buy.
The process is straightforward: two separate agreements are signed—one for renting and another for a future sale. The contract clearly spells out the terms to protect the interests of both parties. Typically, the tenant pays an upfront deposit as a guarantee of serious intent. This amount is usually about 10% of the property’s value. If the purchase does not go through, the deposit is not refunded. If the sale does happen, the deposit is deducted from the final price.
Key terms
The contract must specify the monthly payment amount, the percentage that will be deducted from the property’s price, and the timeframe during which the tenant can exercise the right to buy. Usually, for the first two years of renting, 100% of rent payments can be credited, while in subsequent years, it drops to 70-80%. This encourages tenants to make a decision sooner rather than later.
The parties also agree on who will pay for utilities, property tax (IBI), waste collection fees, and maintenance costs. Typically, the property tax remains the owner’s responsibility, while water and electricity bills are usually paid by the tenant. All these details are specified in the contract to avoid disputes in the future.
Additional provisions
Modern rent-to-own agreements increasingly include special conditions. For example, there may be a requirement to use alternative dispute resolution methods (MASC) before going to court, which has been mandatory since 2025. The owner may add a clause about entering the tenant into a debtors’ register in case of late payments. If the apartment is located in an area with rent controls, the landlord is required to disclose information about the previous five years’ rental rates and the official price index.
The contract can also specify whether pets are allowed, who is responsible for minor and major repairs, and other details that may be important to the parties. This flexibility allows the agreements to be tailored to individual needs.
Terms and taxes
The duration of a rent-to-own agreement is set by the tenant and owner. Although the law sets a minimum term of five years, the parties may agree on different terms. If the tenant decides to purchase the property earlier, they must pay the remaining amount, calculated based on the payments already made.
From a tax perspective, the tenant must pay the property transfer tax (ITP) within 30 days of signing the lease agreement, and again after completing the purchase. The seller, in turn, pays the capital gains tax (plusvalía) after the deal is finalized.
Where to Find Sample Contracts
For those who don’t want to draft documents from scratch, ready-made rent-to-own agreement templates are available. These templates reflect the latest legal changes, including mandatory clauses on dispute resolution and protection against dishonest tenants. They can be downloaded in various formats, adapted to your needs, and signed online.
Before signing, it’s recommended to carefully review all terms and, if necessary, consult a lawyer. This will help avoid unpleasant surprises and protect your interests at every stage of the transaction.
Key Details
In case of contract extension, the parties must set out the new terms: whether the price, payment procedure, or other parameters will change. If the tenant decides to exercise the purchase option before the lease term ends, they can do so by paying the remaining balance. This flexibility allows the agreement to accommodate individual circumstances and agree on the most convenient terms.
In recent years, the rent-to-own market has grown noticeably more active, especially in major cities and tourist regions. This trend is driven by rising real estate prices and increasing difficulty obtaining mortgage loans. For many renters, this format is becoming a real opportunity to own a home without making a large upfront investment.
If you weren’t aware, idealista is one of the largest online real estate search platforms in Spain. The platform offers not only listings for property sale and rental, but also a wide range of legal templates, including rent-to-own agreements. idealista has been operating since 2000 and is considered a reliable source of information for buyers, renters, and property owners across the country.
