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Spanish Urban Leases Law (LAU)

The Spanish Urban Leases Law (Ley 29/1994, of 24 November) governs leases of urban property in Spain. It distinguishes between residential leases — subject to a protective regime in favour of the tenant, including a minimum term and mandatory extension — and leases for use other than dwelling (business premises, offices, seasonal lets), which are more freely negotiable.

The Spanish Urban Leases Law (Ley 29/1994, of 24 November) governs leases of urban property in Spain. It distinguishes between residential leases — subject to a protective regime in favour of the tenant, including a minimum term and mandatory extension — and leases for use other than dwelling (business premises, offices, seasonal lets), which are more freely negotiable.

In practice

The Spanish Urban Leases Law (LAU), enacted as Ley 29/1994, of 24 November, is the reference statute for tenancy agreements over urban property in Spain. Its regime has been amended several times, particularly on term, extensions and guarantees.

Tenancy disputes — rent arrears, evictions, pass-through of costs, rent updates, termination — require a precise analysis of the LAU version applicable to each contract. BMC advises landlords and tenants: see our Urban Leases and Real Estate Law services.

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Frequently asked questions

Leases of urban property are governed by Ley 29/1994, of 24 November, on urban leases (Ley de Arrendamientos Urbanos, LAU), amended several times since. It distinguishes residential leases from leases for use other than dwelling.
A residential lease meets the tenant's permanent housing need and benefits from a protective regime (minimum term, mandatory extension, deposit limits). A non-residential lease — premises, offices, seasonal — is governed mainly by what the parties agree and, secondarily, by the LAU and the Civil Code.
The LAU grants the tenant a right of extension up to a statutory minimum term, which is longer when the landlord is a legal entity. The exact term depends on the version of the law in force at the date of signing, so it should be verified case by case.
The LAU sets the statutory deposit at one month's rent for residential leases and two months for non-residential leases, without prejudice to additional guarantees agreed within legal limits. The deposit must be lodged with the competent regional body.
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Frequently asked questions

Which law governs rental contracts in Spain?
Leases of urban property are governed by Ley 29/1994, of 24 November, on urban leases (Ley de Arrendamientos Urbanos, LAU), amended several times since. It distinguishes residential leases from leases for use other than dwelling.
What is the difference between residential and non-residential leases?
A residential lease meets the tenant's permanent housing need and benefits from a protective regime (minimum term, mandatory extension, deposit limits). A non-residential lease — premises, offices, seasonal — is governed mainly by what the parties agree and, secondarily, by the LAU and the Civil Code.
What is the minimum term of a residential lease?
The LAU grants the tenant a right of extension up to a statutory minimum term, which is longer when the landlord is a legal entity. The exact term depends on the version of the law in force at the date of signing, so it should be verified case by case.
How much deposit can be required?
The LAU sets the statutory deposit at one month's rent for residential leases and two months for non-residential leases, without prejudice to additional guarantees agreed within legal limits. The deposit must be lodged with the competent regional body.