The rental deposit in Spain in 2026: how much it is, where it is lodged and when it must be returned

What the deposit is and what it is for

The fianza (rental deposit) is a sum of money the tenant hands over when signing the contract to guarantee that they will meet their obligations: paying the rent and the utilities they are responsible for, and returning the home in good condition. It is not a payment to the landlord, but a guarantee which, if all goes well, goes back to the tenant in full when the contract ends.

It is regulated in article 36 of Ley 29/1994, de Arrendamientos Urbanos (LAU, the Urban Leases Act), whose consolidated text can be consulted in the BOE (Spain's Official State Gazette). It is compulsory: a residential rental contract must come with this guarantee, and its amount cannot be freely agreed.

How much it is: one month's rent for a home

For residential lettings the legal deposit is one month's rent, and it must be paid in cash (money, not a guarantee). If the contract is for a use other than housing, such as commercial premises, the law sets it at two months. For example, for a flat at €1,000 a month, the legal deposit would be €1,000.

During the first five years of the contract, or seven if the landlord is a company or other legal entity, the deposit is not updated. After that, each time the contract is extended, the landlord can require it to be adjusted so that it still equals one month of the current rent, and the tenant can ask for the same if the rent has gone down.

Additional guarantees: the two-month limit

In addition to the deposit, the parties can agree other guarantees, such as an additional deposit or a bank guarantee. Since the 2019 reform, article 36.5 of the LAU limits these guarantees: in contracts of up to five years, or seven if the landlord is a legal entity, they cannot exceed the equivalent of two months' rent.

In practice, in a residential contract of standard length the most you can be asked for in guarantees is three months' rent: one for the legal deposit and two as an additional guarantee. If you are asked for more, for example four or five months in advance as a guarantee, that part exceeds what the law allows.

These guarantees need to be distinguished from other payments. The first month's rent is not a guarantee, but payment of the rent. And since Ley 12/2023 on housing (Law 12/2023), in force since 26 May 2023, estate agency management fees and the costs of drawing up the contract are paid by the landlord, under the current wording of article 20.1 of the LAU.

Item	Residential	Non-residential use	Legal basis
Legal cash deposit	1 month	2 months	Art. 36.1 LAU
Maximum additional guarantee	2 months (contracts of up to 5 or 7 years)	Freely agreed	Art. 36.5 LAU
Updating the deposit	Not in the first 5 or 7 years	As agreed	Art. 36.2 and 36.3 LAU
Deadline for return	1 month from handing back the keys	1 month from handing back the keys	Art. 36.4 LAU
Late return	Accrues statutory interest (3.25% in 2026)	Accrues statutory interest	Art. 36.4 LAU

Source: Ley 29/1994, de Arrendamientos Urbanos, consolidated text (BOE). Statutory interest rate for 2026 according to the OCU (April 2026).

Lodging the deposit with the regional body

The landlord receives the deposit, but in most autonomous regions they must lodge it with a public body for as long as the contract lasts. The aim is twofold: to protect the tenant's money and to keep a record of rental contracts. Lodging the deposit is the landlord's obligation, not the tenant's, and it does not earn interest for them.

Each region sets the body, the deadline and the consequences of not doing so. These are the cases we have been able to verify in official or legal sources:

Region	Body	Deadline for lodging	If lodged late
Madrid	Agencia de Vivienda Social (Social Housing Agency)	30 working days from signing	2% surcharge if done within the first year; 5% if more than a year has passed
Catalonia	INCASÒL (Institut Català del Sòl)	Up to 2 months from signing	Surcharges and possible penalties under Catalan regulations
Valencian Community	Generalitat (regional government), through the entities set by the Finance department (Decree 46/2022)	1 month from the contract or from the actual start of the tenancy	Surcharges of 5%, 10%, 15% or 20% depending on the delay
Basque Country	Basque Government regional housing offices (Decree 42/2016)	1 month from signing	Late-filing surcharges
Balearic Islands	IBAVI (Institut Balear de l'Habitatge)	Check the official e-services website; online processing only	Check regional regulations
Andalusia	No compulsory lodging since 24/01/2026	Not applicable: the landlord holds the deposit	Not applicable

Source: Comunidad de Madrid; Idealista (Catalonia, updated in 2023); RSM circular on Decree 46/2022; BOPV (Decree 42/2016); Balearic Government e-services website; Legal Today on Andalusia's Law 5/2025. Always check the regulations in force in your region.

The most recent change is in Andalusia. Ley 5/2025, de Vivienda de Andalucía (Andalusian Housing Law 5/2025), published in the BOJA (Official Gazette of Andalusia) on 24 December 2025, abolished the obligation to lodge deposits with the Agencia de Vivienda y Rehabilitación de Andalucía (AVRA, Andalusian Housing and Renovation Agency) from 24 January 2026. The deposit is still compulsory under the LAU, but it is now held by the landlord, who must return it within the same one-month deadline.

In Madrid, moreover, the landlord's right to ask for the lodged deposit back expires after five years, according to information from the regional government. If you are a landlord, it is worth starting the recovery process as soon as the contract ends so that you can return the deposit on time.

When and how it is returned

The LAU is clear: the balance of the deposit owed to the tenant accrues statutory interest if a month passes from the keys being handed back without it being returned. That month is therefore the reference deadline. In 2026, as no new State Budget has been approved, the 2025 statutory interest rate of 3.25% still applies, as the OCU (Spanish consumers' organisation) explains.

The landlord can deduct from the deposit any amounts the tenant owes them: unpaid rent, outstanding utilities the tenant is responsible for, or the cost of repairing damage beyond normal wear and tear. What they cannot do is keep the deposit because of ordinary use of the home. Article 21.4 of the LAU makes the tenant responsible for small repairs arising from wear through ordinary use, but natural deterioration over time is not damage attributable to the tenant.

If there are deductions, it is reasonable for the landlord to back them up with invoices or quotes, and for the tenant to be able to check them before considering the contract closed.

The most common disputes

Painting: repainting after years of normal use is usually considered the landlord's maintenance; it is different if there are stains, holes or colours changed without permission.
Appliances: breakdowns due to age should not be charged to the tenant; damage from misuse can be.
Cleaning: handing back the home dirty can justify a reasonable deduction if it is proven.
Utilities: the landlord can wait for the final bills to settle up, but not indefinitely.
Last month's rent: it is not a good idea to stop paying the last month and let the deposit cover it; the deposit guarantees the whole contract and non-payment can lead to a claim.

How to avoid problems: an inventory with photos

The best tool for getting your deposit back is prepared on day one. Make a detailed inventory of the condition of the home and the furniture, with dated photos and video, and have both parties sign it or accept it in writing. Repeat the process on the day you hand back the keys.

Photograph each room from several angles, including walls, floors, windows and ceilings.
Test appliances, taps, heating and blinds, and note down any faults.
Note down the electricity, water and gas meter readings when you move in and when you move out.
Keep proof of payment of the deposit and ask for the lodging receipt if your region requires it.
Report any breakdown during the tenancy in writing, as article 21.3 of the LAU indicates, so that it is not blamed on you later.
Ask for a joint inspection on the day you leave and keep a record of the keys handed back.

What to do if it is not returned

If more than a month has passed since you handed back the keys and you have received neither the deposit nor an explanation, send a written claim with proof of delivery, such as a burofax (a certified letter service with legal proof of content and delivery), stating the amount and pointing out that interest is accruing. Many disputes are resolved at this stage.

If there is no response, you can turn to your region's consumer or housing services or go to court. In both cases, the signed inventory, the photos and the proof of payment will be your main evidence.

A deposit handled properly from the start

Many deposit disputes stem from verbal agreements or scattered messages. At Llavely, the contract and the chat are recorded on the website, and so is every step of the tenancy: that the deposit has been paid and received, that it has been lodged with the official body and that the keys have been handed over. That makes it easier to show what was agreed and what was paid. The deposit is paid directly to the landlord by bank transfer: Llavely does not collect or handle payments.

This article is for information only. For a specific case, consult a lawyer or your autonomous region's housing service.

Frequently asked questions

How much is the deposit on a residential let?

The legal deposit is one month's rent and is paid in cash, under article 36.1 of the LAU. For uses other than housing, such as commercial premises, it is two months.

Can I be asked for more than one month's deposit?

The legal deposit is one month, but additional guarantees can be agreed, such as a further deposit or a bank guarantee. In residential contracts of up to five years, or seven if the landlord is a legal entity, those additional guarantees cannot exceed two months' rent. So, in total, the usual maximum is three months.

Does the first month's rent count as the deposit?

No. The first month is payment of the rent and the deposit is a separate guarantee that is returned at the end. It is normal to pay both on signing, but the contract should distinguish them clearly.

Who has to lodge the deposit with the regional body?

It is the landlord's obligation. The tenant gives the deposit to the landlord, who lodges it with the body in their region within the set deadline, for example 30 working days in Madrid or one month in the Valencian Community and the Basque Country. In Andalusia there has been no compulsory lodging since 24 January 2026.

What happens if the landlord does not lodge the deposit?

The consequences fall on the landlord, who may face surcharges or penalties from their region. In Madrid, for example, late lodging carries a surcharge of 2% or 5% depending on the delay. For the tenant, the deposit can still be claimed at the end of the contract in any case.

How soon must my deposit be returned?

The LAU states that if a month passes from the keys being handed back without the balance of the deposit being returned, it accrues statutory interest, which in 2026 is 3.25%. That is why one month is the practical reference deadline.

What can the landlord deduct from the deposit?

They can deduct outstanding rent or utilities and the cost of repairing damage beyond normal wear and tear from use. They cannot keep it because of the natural ageing of the home. Ideally, they should back up any deductions with invoices or quotes.

Can I stop paying the last month and let the landlord keep the deposit?

It is not advisable. The deposit guarantees all the obligations under the contract, including possible damage, and not paying the last month's rent is a non-payment the landlord can claim. The right thing to do is to pay the rent and ask for the deposit back after handing over the keys.

Is the deposit updated if the rent goes up?

During the first five years, or seven if the landlord is a legal entity, it is not updated. When the contract is extended after that period, either party can ask for it to be adjusted so that it equals one month of the current rent.