Drafting a Lease Agreement in Asturias (Requirements)

The lease agreement for a primary residence in Gijón, Oviedo, or anywhere in Asturias is strictly governed by the mandatory provisions of the Spanish Urban Leases Act (LAU 29/1994), as amended by Ley 12/2023. Operating rentals as primary residences requires adherence to these imperative articles, and any clause that places the tenant at a disadvantage compared to the legal minimums is automatically void, even if agreed upon by both parties.

1. Mandatory Minimum Extension Periods

For dwellings leased as a primary, permanent residence, the law imposes strict mandatory extension periods (prórroga obligatoria) under Article 9 of the LAU:

• Even if a lease is signed for a shorter term, such as 12 months, it will automatically renew at the tenant's discretion up to a minimum of 5 complete years if the landlord is a natural person.
• If the landlord is a legal entity (e.g., an S.L. or corporation), this mandatory extension period reaches 7 complete years, during which the landlord generally cannot terminate the lease.
• Once this initial 5 or 7-year mandatory extension period elapses, the lease enters a period of tacit renewal (prórroga tácita) under Article 10.1. If neither party provides notice of non-renewal (4 months for the landlord, 2 months for the tenant), the lease automatically renews for up to 3 additional years. During this tacit renewal period, the landlord is bound for the full 3 years, while the tenant may terminate the lease at the end of each annual period with 1 month's notice.
• Extraordinary Extensions: Under Articles 10.2 and 10.3, tenants may request a 1-year extension in cases of accredited social or economic vulnerability. In declared 'Stressed Zones' (Zonas Tensionadas), tenants may request a 3-year extension under the same terms.

2. Early Termination and Cancellation Penalties

If your tenant decides to leave early, the law restricts the penalties you can impose. You cannot demand the remaining rent for the entire unexpired term of the contract:

• Tenant's Right of Withdrawal: The tenant has the legal right to terminate the lease early after the first six (6) months of the contract have elapsed, provided they give the landlord at least 30 days' prior notice.
• As a penalty for early termination, your lease agreement can only stipulate a maximum penalty of one (1) month's rent for each remaining year left on the contract. (For periods of less than a year, the penalty is prorated accordingly). This penalty may only be charged if it is explicitly stipulated in the written contract; otherwise, no penalty is applicable.

3. Agency Fees and Contract Costs

In accordance with Article 20.1 of the LAU, real estate management and contract formalization costs are always the responsibility of the landlord for residential leases. Tenants cannot be required to pay these fees.

4. Mandatory Regional Deposit

The security deposit (fianza) of one month's rent must be deposited with the Ente de Servicios Tributarios del Principado de Asturias (Caja de Depósitos) as required by Decree 59/1994. Failure to do so may result in administrative penalties.

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