Our Guide on Renting or Buying a Home in Spain

Jump right in:

• Renting a house or apartment
• Rental process and rules
• Short-term rentals
• Buying property as a foreigner
• Utilities
• Internet and mobile phones

Renting a house or apartment

Wondering how to rent a house or apartment in Spain? Are you asking yourself what the average rent is, or if renting as a foreigner is difficult? Look no further because this housing guide will answer all of your questions. We provide information on the rental process and rules you can expect to come across in the Iberian country, as well as the standards on rental contracts and deposits, the requirements and documents for renting, and how to set up utilities.

What is the average rent in Spain?

Wondering how much the rent is in Spain? Rent prices of apartments and houses in Spain have slowly, but consistently, been on the rise in the past few years. The minimum rent for a house or apartment in Spain depends on your location. Rent prices in metropolitan areas are much higher than in small towns. All in all, the average rental price in Spain is 14.60 EUR (approx. 17 USD) per square meter.

The most and least expensive areas in Spain

If you’re planning on renting in Spain, you can expect cities like Madrid, Barcelona, Bilbao, and Palma de Mallorca to be the most expensive.

Madrid is the most expensive area in Spain when considering the overall region, including the community, province and the city levels — with an average of 21 EUR (approx. 25 USD) per m2, slightly above the national average.

It’s closely followed by Cataluña, which averages 20.8 EUR (approx. 24.5 USD) per m2. Prices in the Balearic Islands and the Basque Country are also above the national average. The cheapest areas to live in Spain are Extremadura, Castilla la Mancha, and La Rioja. These areas fall below the national average at around 7–9 EUR (approx. 8–10.5 USD) per m2.

In the city of Madrid, the average price per square meter is 22.1 EUR (approx. 26 USD). A one-bedroom apartment of around 45 m² costs approximately 994.5 EUR (approx. 1,160 USD) per month. A three-bedroom apartment of about 90 m² would cost around 1,989 EUR (approx. 2,320 USD).

If we look specifically at city data, Barcelona is more expensive than Madrid in terms of housing costs. The average price per square meter in Barcelona is 23.4 EUR (approx. 27 USD). A one-bedroom apartment of around 45 m² costs around 1,053 EUR (approx. 1,230 USD) per month. A three-bedroom apartment of about 90 m² would cost around 2,106 EUR (approx. 2,460 USD).

Other popular cities for expats are Bilbao, Seville, Malaga, and Valencia.

How can I to find a house or apartment to rent in Spain?

If you’re looking for an apartment or house to rent in Spain, it’s good to check different sources in order to get an idea of what the market is like in your location. Look at local newspapers, browse real estate websites, and consider talking to locals, who might be able to give you specific insights into renting in the area.

A good place to start is at an InterNations event or group, where you’ll meet local expats who have gone through the process of renting or buying property in Spain.

You can find houses and apartments on these popular websites:

• Fotocasa (in Spanish)
• Idealista
• Spacest

Furnished or unfurnished?

It’s possible to find both furnished and unfurnished homes on these sites. However, rent prices will vary greatly between the two. Unfurnished places might have a kitchen with appliances or be completely bare, whereas apartments advertised as furnished might be equipped in a very Spartan fashion.

The best method is to always look at the place before renting, and ask what’s included in the price. Rentals are also advertised with a monthly rent price and the size of the living space in square meters.

Rental process and rules

If you’re wondering what your rights are as a tenant in Spain, and what rules and processes you should expect from your landlord, the following insights will be useful.

Long-term rental contracts are typically five years long, or seven if the landlord is a business. For these standard contracts, you shouldn’t be asked to pay more than three months of rent as a deposit.

When applying for a property through an estate agent or online platform, you may be asked to pay a reservation fee, which varies depending on the provider. This amount is sometimes deducted from your first month’s rent after signing the contract, depending on the agency’s policy. If the landlord does not choose you as a tenant, the reservation fee may not be refunded, depending on the platform’s conditions.

You’ll also need to provide the following documents:

• employment contract including the last three month’s payment slips, or proof of financial means such as the latest tax return
• NIE (Spanish tax identification number)
• passport, ID
• one month’s rent as reservation fee (if you rent through an agency)
• private guarantor (in some cases)

If you found your property through an estate agent, you’ll be happy to know that according to Spanish law, the agent will be paid by the landlord. If you specifically hired an agency to help you find a home, you may be charged a commission only in non-residential or seasonal rentals, or if you contracted additional services.

Tenancy agreements in Spain

Tenancy contracts (contrato de arrendamiento) in Spain can either be written or verbal, but having a written agreement is always recommended. In case you find yourself looking at a contract in Spanish, knowing these important terms can help you deal with the legal part of renting a house or apartment. However, it’s still better to have the contract translated, so you can be fully aware of what you’re signing.

Important vocabulary:

Normally, apartments with short-term leases are rented for the duration of less than one year and vary depending on the type of contract. If you cancel the lease within the first six months, you may have to pay compensation, depending on what was agreed in the contract.

Regardless of the duration of the contract, you can terminate your contract:

• after six months, with a notice period of 30 days
• if your landlord included a clause stating that you can terminate the contract at any time

The Spanish government provides the full details of rental law in Spain on its website (in Spanish).

Finally, be aware that utilities and payment of bills fall under the responsibility of the tenant. Most rentals are leased without utilities, unless you have a different agreement with your landlord.

Tenant’s rights in Spain

Rental law in Spain is on the tenant’s side. Even if a tenant stops paying rent for a long period of time, it’s difficult for a landlord to evict them. Shutting off utilities and changing locks to make the property unhabitable for the tenant can be considered harassment, and a landlord might even be fined for taking such measures.

Eviction processes in Spain have to go through social services in order to determine the tenant’s current situation and set an adequate date for the eviction.

Short-term rentals

Whether you’re waiting for your home to be ready or just have not found the right spot, sorting out a place to stay on a short-term basis upon arrival is a good idea. There are many websites to look up temporary rentals or monthly furnished rentals, such as Airbnb or Uniplaces. These sites are targeted at tourists and people looking to rent for just a few months. Of course, renting an apartment from Airbnb or Uniplaces might turn out more expensive than renting a regular half-furnished apartment.

There is no fixed minimum renting period, as it depends on the type of contract. If you terminate your contract before the first six months, you may have to pay compensation, depending on what was agreed in the contract.

You can also contact local real estate agents, or agencias imobiliarias, to find the right place for you. The type of documents you may need will typically be the same as for long-term rentals:

• employment contract including the last three month’s payment slips, or proof of financial means such as the latest tax return
• NIE (Spanish tax identification number)
• passport, ID
• one month’s rent as reservation fee (if you rent through an agency)
• private guarantor (in some cases)

Buying property as a foreigner

Looking for property to buy in Spain as a foreigner? This guide will give you an insight into the process and steps for buying a home in Spain and the current house prices, as well as the requirements needed to buy property. If you’re wondering if you’ll get citizenship or permanent residence in Spain when buying a house, the answer is no. Acquiring Spanish land doesn’t automatically grant you citizenship.

What are the requirements for buying property?

If you’re looking to buy property as a foreigner, you’ll be happy to know that there are no restrictions on property ownership in Spain. If your biggest wish was to own a farm and a vineyard in the countryside of Spain, then pack your bags, because you can have all that.

However, there are some requirements you need to look out for. In general, all foreigners need to have an NIE (foreigners’ identity number). Non-EU nationals do not need a visa to buy property, but they must obtain a NIE, open a Spanish bank account, and justify the origin of their funds. Hiring a lawyer to handle the closing deal and a mortgage offer might be a good idea.

Buying a house in Spain: Process & Steps

There are several ways you can search for property in Spain. Your best bet is to look at different sources, such as specific websites, local real estate agents, magazines, and newspapers.

To look for properties, you can use some of the same websites you would to look for rentals, such as Idealista or Fotocasa. When you select comprar (buy), you will see all the options available for purchase.

If the house or property you go for is being sold through an estate agent, they are usually paid by the seller, although the agreement can vary if the buyer hires the agent for specific services. It’s especially advisable to buy through estate agents as they know the laws and the region well.

All issues concerning housing in Spain are managed by the Ministerio de Viviendas. Here, you can get more specific information on architecture, sustainable building, or evaluation reports.

In general, you should follow these steps when buying any type of property in Spain:

 1. Acquire a mortgage offer, which usually requires a credit check. 2. Searching for the type of property you want. 3. Requesting a “nota simple” from the Registro de la Propiedad, the Spanish property registry. This will provide legal details such as who owns the property, whether it has debts or charges, and its physical characteristics. 4. Once you have found the right one, pay a deposit through a “contrato de arras” to secure the property. 5. Sign the deed of sale before a notary and pay the remaining amount of the property in full.

A notary is legally required to formalize the sale of a property in Spain, as their signature is necessary for the deed to be valid and registered. Lawyers are not legally required when buying a home, but some mortgages and insurances might need a notary to complete the sale. Generally, it’s a good idea to have legal representation in these instances, as this will keep you from falling prey to con artists.

How to avoid buying illegal property in Spain

Extra caution when buying homes in Spain is recommended, as some inexperienced foreign buyers may fall victim to developers or estate agents selling properties without proper permits. This means that in some particular cases a planning permission has not been acquired before starting to build. As a buyer, these are the steps you should follow to make sure the property you are interested in is legitimate:

1. Check if the company you’re dealing with is listed in the Mercantile Registry or the corresponding regional real estate agent registry. 2. Check if the project you’re interested in is in the land registry. 3. Enquire at the local city hall if a planning permission for the project has been granted. 4. Always take an interpreter to meetings if you do not speak Spanish. 5. Don’t sign anything that you don’t understand, especially if it’s in Spanish. 6. Get proof of payments and a bank guarantee or insurance certificate ensuring your money will be returned if the property is not built.

Avoid surprises: Check for property debt

When buying a house, or when building property on a piece of land, before signing anything, make sure that it’s debt free. In Spain, any mortgage, property taxes, or debts tied to a house will be transferred directly to the new owner.

Understanding the costs of buying property in Spain

Estate agents hired by the seller are paid by them as well. If a buyer hires an estate agent, the buyer is responsible for paying the agency fee. However, in some regions or under certain agreements, this may be shared or negotiated. Other fees related to buying a house are usually paid by the buyer and include:

• Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales): 6–10%, depending on the region and whether the property is second-hand

• VAT (Impuesto sobre el Valor Añadido, IVA): 10%, applicable only to new properties

• Stamp Duty (Actos Jurídicos Documentados, AJD): 0.5–1.5%, depending on the region. This tax applies mainly to new properties.

• Notary costs, title deed tax, and land registration fees: 1–2.5%

• Legal fees: 1–2%

House prices in Spain

Prices for property in Spain largely depend on the type of property you’re looking for and your desired location. Overall, there’s a trend of property prices going up. Capitals and big cities are usually the most expensive in terms of property prices, and the cost of living in those cities will also demand more of you financially. House prices, either for rent or for sale, are commonly listed in price per square meter, although not always. To give you a sense of what that will look like, we have listed the prices for the most popular cities in Spain.

Depending on the size, a two- to three-bedroom apartment or house in Madrid can range from 460,000 EUR to 690,000 EUR (approx. 540,000–800,000 USD). Buying a two- to three-bedroom property in Barcelona will set you back between 395,000 EUR and 500,000 EUR (460,000–585,000 USD).

Utilities

If you’re renting in Spain, you’ll usually have to sign a contract with utility companies to access water, electricity, and gas. Utilities are generally handled by tenants. Sometimes it’s possible to arrange with the landlord to include them directly in your rent and have the utility contract in the name of the property owner.

What documents will you need?

In general, you’ll have to sign a contract with a utility company unless you have a different agreement with your landlord. The required documents to set up a contract are:

• NIE (foreigners’ identity number)
• your bank account details for direct debits
• tenancy contract

Electricity and gas in Spain

An important thing to know is that electricity prices in Spain are some of the highest in the world, so expect this to take up a big part of your expenses.

The biggest utility companies in Spain supply both gas and electricity:

• Iberdrola
• Naturgy
• Grupo Endesa
• EDP

Some of the biggest utility companies supplying gas in the country are:

• CEPSA
• Enagás
• Repsol

Water in Spain

Water is managed through a decentralized system involving public, private, and mixed companies that operate under agreements with municipalities and regional authorities. Water is considered safe to drink in most of the country, with 99.5% of tap water meeting European Union quality standards.

Depending on the region, particularly in the southeast of the peninsula, the Canary Islands, or parts of Catalonia and Castilla-La Mancha, there may be occasional issues with water scarcity, especially during prolonged droughts. While northern and central areas tend to receive more rainfall, southern regions and specific areas such as Lanzarote, Fuerteventura, and parts of Murcia and Andalusia may face limited water availability.

There are sometimes restrictions on water usage during the summer, such as limits on garden irrigation, filling private pools, or washing vehicles, but these measures generally do not affect essential household use like showering.

Internet and mobile phones

Spain has one of the most developed mobile markets in the world, so when it comes to finding a phone provider, or getting a SIM card, you should be covered. The same goes for the internet, since Spain has the fastest fiber optic services in Europe.

Internet and cell phone providers in Spain

Some of the most popular operators providing both internet and phone services are:

• Movistar
• Orange
• Vodafone

If you also want to access cable television in Spain, you’ll find a variety of channels through these providers

• DIRECTV
• AT&T
• Mediacom

How to watch you home country’s TV in Spain

Most television providers already offer packages for expats. The best thing to do is contact a provider in your home country and ask them for more details on how you can watch your home country’s channels in Spain. Another option is streaming directly online from your country’s website. Depending on your location, the content may be blocked. If that happens, you should consider investing in a VPN, which allows you to access your home country’s online content.