Rental Deposits in Spain: What Landlords Must Know to Stay Legal

If you're renting out your property in Spain, especially in popular coastal areas like Jávea, Dénia, or Moraira, it's essential to understand your legal responsibilities — particularly when it comes to rental deposits.

Far too often, landlords unknowingly put themselves at risk by holding onto the deposit themselves or failing to lodge it with the correct authorities. But the law is crystal clear: rental deposits must be paid into an official public body, and failure to comply can lead to serious fines and surcharges.

Why Is This So Important?

Registering the deposit with the regional housing authority:

• Protects both landlord and tenant.
• Provides a clear legal framework if there are damages or disputes at the end of the tenancy.
• Ensures the tenant’s deposit is safely held and only returned (or partially retained) under justifiable circumstances.

What the Law Says (Article 36.1 of the LAU)

Under Spain’s national Tenancy Act (Ley de Arrendamientos Urbanos), landlords are obliged to lodge the rental deposit with their regional government. This requirement is non-negotiable, and the landlord — not the tenant — is responsible for making this payment.

Each Autonomous Community sets its own deadline. In the Valencian Community, the deposit must be lodged within 1 month of signing the contract.

This is the landlord's legal responsibility, and any fines or penalties for non-compliance are not the responsibility of the agency. We strongly recommend landlords consult their gestor or lawyer to ensure this requirement is properly handled.

What Happens If You Don’t Comply?

If the deposit is not lodged within the established period, the following surcharges apply:

• 5% if the delay does not exceed 3 months.
• 10% if the delay is between 3 and 6 months.
• 15% if the delay is between 6 and 12 months.
• 20% if the delay exceeds 12 months.

In addition to these surcharges, fines ranging from €600 to €3,000 can be issued, and late payment interest may also be charged. It's also classified as a serious offence, and tenants have the right to report non-compliant landlords to the regional authorities.

Avoiding Scams and “Fake” Listings

Registering the deposit with the public authority not only protects tenants but also helps professional agents like VíllaMía combat scams and fraudulent listings. In recent years, we’ve seen a rise in online scams where fake landlords request upfront deposits for properties that don’t exist or aren't actually available. By lodging the deposit officially, transparency is created, and trust is built from the start.

How VillaMia Helps You Stay Compliant

At VillaMia, we manage the rental process professionally, offering:

• Fully legal rental contracts.
• Advice on deposit handling (and support if needed).
• Utility changes in tenant names.
• Trusted partners for legal and tax advice.
• Complete rental and property management services.

Whether you're a seasoned landlord or renting for the first time, we’re here to make sure everything is handled correctly from day one.

Need help managing your rental?

Contact VillaMia today — We’ll guide you through every step with experience, transparency, and care.