Penalties for Withdrawal and Duration of Residential Contracts in the Canary Islands

Leasing a property in the Canary Islands archipelago as a "Primary Residence" (Vivienda Habitual) subjects the landlord to the mandatory protections of the Spanish Urban Leases Act (LAU). Any attempt to limit these rights through abusive clauses will result in their absolute nullity in the courts of Las Palmas or Santa Cruz de Tenerife.

1. Mandatory Extensions for the Landlord (5 and 7 Years)

Regardless of the landlord's preference, a tenant residing in a primary residence in the Canary Islands is guaranteed the right to remain in the property:

• It does not matter if you draft an "11-month" contract; if the property is the tenant's habitual and permanent home, the law treats it as a long-term residential lease.
• The LAU imposes mandatory annual extensions for the landlord until reaching a legal minimum of 5 YEARS (or 7 years if the landlord is a corporate entity or legal person).
• After this initial period, if the landlord does not notify the tenant of their intent not to renew via Burofax with 4 months' notice, the contract enters "Tacit Renewal" for an additional 3 years.

2. Premature Exit and the Right to Withdraw

Under the law, a tenant in the Canary Islands has the right to leave the property and terminate the contract prematurely:

• They have the right to withdraw once the first six (6) months of the contract have passed.

• They must inform the landlord with at least 30 days' notice via Burofax or other reliable communication.

• Withdrawal Penalty: If the tenant leaves after the 6-month mark, the landlord can only charge an indemnity if it was explicitly agreed upon in writing in the contract. By law, this maximum indemnity is one month's rent for each remaining year of the contract. Pro-rated amounts apply for periods shorter than a year.

Back to Canary Islands Residential OverviewPreview unavailable.