Security Deposits in Andalusia, Spain

Managing the security deposit (known in Spain as the fianza) is one of the most critical steps in formalizing a rental agreement. In Andalusia, landlords must adhere to national legislation (the LAU) while taking advantage of major regional deregulation introduced by the 2026 Andalusian Housing Law.

Mandatory Deposit and Additional Guarantees

Under Article 36 of the Urban Leases Act (LAU), requesting and paying a cash security deposit is absolutely mandatory at the time the lease is signed.

The Mandatory Fianza

For long-term residential leases (vivienda habitual), the strict legal requirement is exactly one month's rent. Landlords cannot demand a higher mandatory "fianza" for residential use.

Additional Guarantees (Garantías Adicionales)

To mitigate the risk of non-payment or severe property damage, a landlord can legally request additional financial guarantees (such as a bank aval or extra cash deposit). However, Spanish law caps these: additional guarantees cannot exceed two months' rent. Therefore, the maximum a landlord can hold upfront is three months' rent (1 mandatory fianza + 2 additional guarantees) beyond the first month's advance rent.

The End of the AVRA Deposit Requirement (2026)

For decades, the standard procedure in Andalusia involved strict bureaucratic compliance regarding the custody of this deposit. The Andalusian Housing Law 5/2025 radically changed this for landlords starting in January 2026.

• Prior to 2026: Landlords were forced to deposit the collected 1-month fianza with the regional housing agency, the Agencia de Vivienda y Rehabilitación de Andalucía (AVRA), within one month of signing the contract. Failure to do so resulted in fines and surcharges.
• The New Rules (From Jan 2026): The obligation to deposit the fianza with AVRA has been completely eliminated. Landlords in Andalusia now retain direct custody of the security deposit funds to hold throughout the tenancy. Note: While the administrative hurdle is gone, the legal obligation to actually collect the 1-month deposit from the tenant remains mandatory under national law.

Returning the Security Deposit

Upon the termination of the lease and the return of the keys, the security deposit must be used to settle:

1. Unpaid rent.
2. Unpaid utility bills or contractually agreed-upon community fees.
3. Repairs for damage that goes beyond normal wear and tear.

The One-Month Deadline

The LAU dictates that the landlord must return the balance of the deposit to the tenant within one month of the termination of the contract and the handover of the property. If the balance is not returned within this 30-day window, the unreturned amount will accrue the legal interest rate (interés legal del dinero).

Transparency and Justification

Landlords cannot arbitrarily withhold deposit funds for standard cleaning or routine painting (unless the property was left in an abhorrent state). Any deductions must be fully justified with invoices or formal repair quotes proving the cost of repairing tenant-caused damage.

Stay Compliant with Landager

Avoiding deposit disputes in Spain requires rigorous documentation, including photographic move-in/move-out inventories. Utilize the Landager platform to manage deposit ledgers, store property condition reports, and automate the final liquidation process, ensuring you meet the strict one-month return deadline in Andalusia.

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