What does Spanish law say about real estate commission?
Article 20 of the Urban Leasing Law (Ley de Arrendamientos Urbanos, LAU) May 2023, was enacted to make renting fairer and less of a financial burden for tenants.
By law, landlords must pay real estate agency fees for long-term rentals and not the tenants. This rule ensures that tenants aren’t saddled with extra financial burdens just to secure a property.
Despite this clear mandate, some real estate agents attempt to sidestep the law by introducing disguised fees under names like “administrative costs”, “service charges”, or other vague terms. Make no mistake, these practices are illegal. More about that below…
Deposits and Guarantees
The law does allow landlords to request a security deposit equivalent to 1 month rental for residential leases.
Landlords are permitted to request additional guarantees, however this is limited to a maximum of 2 months’ rent, meaning the total upfront payment by the tenant (deposit + additional guarantees) cannot exceed three months’ rent.
Example scenario, A property has a monthly rent of €1,000
The maximum a landlord can request is:
Security deposit: €1,000 (1 month’s rent)
Additional guarantees: €2,000 (maximum 2 months’ rent)
First month’s rent: €1,000
Total upfront payment: €4,000 (€1,000 for the first month + €3,000 for the deposit and additional guarantees).
To avoid later disputes over damages, be sure to take photos and videos of the property’s condition upon move-in. Keep a copy for yourself and send a copy to the landlord. Do the same when you move out.
Steps to address illegal real estate practices in Spain
Some real estate agencies and landlords continue to bypass regulations. Here’s how tenants, potential tenants, and concerned individuals can address these violations effectively.
What can you do as a concerned citizen?
When you see non-compliant advertisements in local Facebook groups, Instagram, property portals like Idealista, Kyero, etc. or Milanuncios etc. save screenshots or copies of the Ads and where they detail prohibited real estate agency charges like “administrative fees” or “service charges.”
You can file a complaint with relevant bodies such as:
1 a) Local Consumer Protection Offices (OMIC). You can search online by entering “OMIC” and your local area’s name.
1 b) Oficina de Atencion a la Ciudadania (OAC), citizen service office. You can also search for them online by entering “OAC” and your local area’s name.
2. Regional Housing Authority
For example, in the Valencian Community it’s the Conselleria de Vivienda y Arquitectura Bioclimática
Address: Calle de la Democracia, 77, 46018 Valencia
Phone: +34 961 208 000
Website: https://www.habitatge.gva.es/
3. The National Consumer Protection Agency AECOSAN (Spanish Agency for Consumer Affairs, Food Safety, and Nutrition)
Address: Calle Príncipe de Vergara, 54, 28006 Madrid
Phone: +34 91 822 44 00
Website: https://www.aesan.gob.es/
4. OCU Organization of Consumers and Users
Address: Calle Albarracín, 21, 28037 Madrid
Phone: +34 91 300 91 00
Website: https://www.ocu.org/
What can you do as a tenant?
1. Report the violation to your local Municipal office.
Each municipality in Spain has a consumer protection office -an Oficina Municipal de Información al Consumidor (OMIC) – where you can file complaints about illegal rental fees, deposits, or misleading advertisements. To locate your local office, search for “OMIC” combined with your municipal area name, or “OAC” and your local municipal area.
2. Regional housing authorities like the Conselleria de Vivienda y Arquitectura Bioclimática in the Valencian Community oversee rental practices and can investigate violations.
Provide detailed evidence, including screenshots of advertisements, payment receipts, and correspondence with the agency or landlord.
3. Join forces with Consumer Associations
Organizations such as the OCU defend tenant rights, mediate disputes, and provide legal resources. Contact these groups for additional support.
4. Take legal action
Tenants can pursue legal action to recover unlawfully charged fees or deposits. You can engage a solicitor specializing in Spanish tenancy law to strengthen your case and navigate the legal process.
Why it’s Important to report illegal real estate practices in Spain
These regulations are designed to ensure fairness in Spain’s rental market. By knowing your rights, documenting violations, and utilizing available resources, you can protect yourself and foster a more transparent housing sector. If you suspect violations, act swiftly to report and resolve the issue.
Don’t let hidden fees or excessive demands intimidate you. Whether it’s reporting a shady advertisement or standing your ground on illegal fees, tenants in Spain now have the tools—and the law—on their side.
