Residential Lease Requirements in Aragon

Drafting a residential lease in Aragon (Zaragoza, Teruel, Huesca) requires strict adherence to the Spanish Urban Leases Act (LAU), effective 1 January 1995. In Spain, residential tenants enjoy significant protections that cannot be waived by contract; any clause that diminishes these rights is considered null and void.

1. The Right to a Written Contract (Art. 37 LAU)

While oral leases are technically legal in Spain, they offer very little protection for either party.

• Compulsory Formalization: Under Article 37 of the LAU, either the landlord or the tenant can require the other party to sign a written document at any time.
• Essential Data: The written contract must specify the identities of the parties, the description of the property, the initial term, the starting rent, and any other agreed-upon clauses.
• Costs: All real estate agency fees and contract formalization costs must be paid by the landlord (Art. 20.1 LAU).

2. Mandatory Lease Extensions (Art. 9 LAU)

One of the most important protections for tenants in Spain is the right to stay in the property for a minimum period, regardless of what the contract says about a "one-year duration."

• Individual Landlords: The tenant has the right to renew the lease annually for up to 5 years.
• Corporate Landlords (Legal Entities): If the landlord is a company or professional entity, this mandatory extension period increases to 7 years.
• The Landlord's Exception: The landlord can only prevent these extensions if they explicitly stated in the contract that they may need the property for themselves or their immediate family as a primary residence (subject to strict notification rules and actual occupation).

3. Tacit Renewal (Art. 10 LAU)

If the mandatory 5 or 7-year period expires and neither party has notified the other of their intention to terminate:

• Notification Deadlines: The landlord must give 4 months' notice and the tenant must give 2 months' notice.
• The 3-Year Extension: If no notice is given, the lease automatically renews for annual periods for up to 3 additional years, maintaining all existing terms and conditions.

4. Tenant's Right to Withdraw (Art. 11 LAU)

The tenant has a statutory right to terminate the lease early ("desistimiento"):

• The 6-Month Rule: The tenant can withdraw from the contract after the first six months have passed.
• Notice Period: The tenant must give at least 30 days' notice to the landlord.
• Penalty Clause: The parties can agree in the contract that the tenant will pay a penalty equal to one month's rent for every year of the remaining term. If not explicitly agreed, no penalty applies.

5. Nullity of Abusive Clauses (Art. 6 LAU)

Any clause in the contract that is "to the detriment of the tenant" regarding the rights established in the LAU is null and void. Common examples of illegal clauses include:

• Attempting to waive the 5/7-year mandatory extension.
• Requiring more than 30 days' notice for tenant withdrawal.
• Imposing maintenance costs for structural repairs (which are the landlord's responsibility under Art. 21).
• Charging the tenant for real estate agency fees or contract formalization costs (Art. 20.1 LAU).
• Applying rent increases that exceed the statutory caps (from 2025, increases are capped by the new 'Índice de Referencia de Alquileres').

6. Mandatory Security Deposit (Fianza) in Aragon

Under Ley 10/1992 and Decree 211/2023, the landlord is legally required to deposit the security bond (equivalent to one month's rent for residential properties) with the 'Dirección General de Vivienda y Rehabilitación' of the Government of Aragon (DGA) within one month of the contract date. Failure to do so results in surcharges (5% to 20%) and potential fines.

Manage your Spanish residential leases with LandagerPreview unavailable.