Long-term residential rental — LAU and rent-pressured zones

Long-term residential rental in Spain is regulated by Act 29/1994 on Urban Rentals (LAU), as amended by Act 12/2023, of 24 May, on the Right to Housing.

Minimum contract duration

The minimum duration for a residential rental contract is 5 years when the landlord is a natural person, and 7 years when the landlord is a legal entity. The tenant has the right to extend the contract until the minimum duration is reached.

Rent-pressured market zones

Act 12/2023 introduced the concept of rent-pressured residential market zones, allowing authorities to cap rents in areas where an imbalance between supply and demand for affordable housing is demonstrated.

The city of Málaga has been declared a pressured zone. In these areas, new contracts may not exceed the rent of the previous contract, and large landlords are subject to additional limits based on the official rental price reference index.

Nerja and the municipalities of the Axarquía are not currently classified as pressured zones and are subject to the general LAU conditions without rent restrictions.

Seasonal rental (temporada)

Non-tourist temporary rental contracts are regulated by Article 3 of the LAU. Contracts of more than 2 months with the same tenant exclude the property from classification as a VUT.

This is a distinct category from tourist rental: it does not require a VUT licence, but it also does not benefit from the 60% tax reduction available for stable long-term residential rentals.

Key distinction: tourist rental vs. seasonal rental

Spanish law expressly distinguishes between:

• Tourist rental (VUT): governed by Andalusian regional regulations (Decree 28/2016 and amendments). Requires a VUT licence and the code VUT/MA/XXXXX.
• Seasonal rental (temporada): governed by Article 3 of the LAU. Does not require a VUT licence but does not benefit from the tax advantages of stable residential rental.