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). 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. The lease will automatically renew for up to 3 additional years in annual increments, unless either party provides formal notice of non-renewal. To prevent this tacit renewal, the landlord must provide notice at least 4 months in advance, whereas the tenant must provide at least 2 months notice before the end of the term.

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. Any penalty clause exceeding this statutory maximum is considered abusive and void).

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