In Spain, the issue of returning rental deposits always sparks heated debate, especially when it comes to high-end apartments and villas. A recent court ruling in Madrid has once again shaken the market: now, landlords of luxury properties have new legal grounds for withholding part of the deposit. Renters who expect a full refund may face an unpleasant surprise—and not always in their favor.
Case law shows that if the rental contract clearly outlines maintenance and minor repair costs, the landlord has the right to deduct not only unpaid utility bills from the deposit, but also expenses for the upkeep of the grounds, pool, or garden. The key is that all deductions must be documented and comply with the terms of the contract. Otherwise, an attempt to withhold funds can be considered an abuse of rights.
Case details
The spotlight was on a dispute between the owners of a luxury property and their former tenants, who insisted on the full return of their deposit. The contract was signed in 2015 and ended four years later. The deposit amount: an impressive €4,000. After the lease ended, the owners decided not to rush the refund: they claimed it was necessary to check for outstanding debts and needed repairs.
The tenants, confident in their case, took the matter to court. However, the judges sided with the property owners, ruling that they had the right to deduct from the deposit the amounts for unpaid gas and water bills, municipal parking fees, as well as maintenance costs for the garden and swimming pool. Moreover, even minor repairs to the automatic irrigation system were deemed justifiable grounds for deduction from the security deposit.
Law and Luxury
The court paid special attention to the status of the property. In Spain, suites and villas larger than 300 square meters or with rent exceeding 5.5 times the minimum wage are subject to special rules. In these cases, the law gives priority to the terms set out in the contract. If the lease specifies that the tenant is responsible for pool or garden maintenance, the courts will not dispute this.
In this case, all expenses were backed by invoices and work completion certificates. The judges emphasized: if a tenant signs a contract under such terms, they cannot expect a full return of the deposit if they fail to meet their obligations. Even handing over the keys does not absolve them from responsibility for debts and damages.
Legal Nuances
Interestingly, the court did not limit itself to just utility payments. The calculation also included regular maintenance costs for the grounds—something almost unheard of in standard apartments. As a result, out of 4,000 euros, the tenant received back only 353.86 euros, with the rest covering documented debts and expenses.
The court decision has sent a strong signal to the market: landlords of luxury properties now have a powerful tool to protect their interests. They no longer have to fear accusations of abuse if they act strictly according to the contract and provide proof of expenses. As for tenants, they should read contracts carefully and not count on an automatic return of their deposit.
Practical takeaways
For tenants of luxury apartments and houses in Spain, the situation has changed. Even small debts or minor damage can now result in significant financial losses. The courts are taking an increasingly tough stance: if the contract specifies responsibilities for property maintenance or payment for certain services, it will be impossible to avoid deductions from the deposit.
However, the courts still require transparency from landlords: all expenses must be supported by invoices, and all conditions must be clearly stated in the contract. Any attempt to withhold money without justification can backfire and lead to court costs.
If you didn’t know, the luxury rental market in Spain is highly competitive and governed by strict rules. Owners of such properties often include additional maintenance requirements in their contracts, allowing them to minimize risks and protect their investments. Tenants should thoroughly review all contract terms in advance and clarify which expenses may be deducted from the deposit to avoid unpleasant surprises upon moving out.
